Hong Kong Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OUTLOOK

The Hong Kong data center market will witness investments of USD 4.80 billion by 2029, growing at a CAGR of 3.23% during the forecast period. The market is booming, driven by the increasing demand for digital services. With a robust infrastructure and strategic location, Hong Kong attracts businesses seeking reliable, high-performance data hosting solutions.

The Hong Kong data center market is witnessing a surge in brownfield development owing to land constraints. The government has established a special unit, Developing Data Centres, to support data center growth. The surge in investments also reflects Hong Kong's strategic importance as a hub for data storage and processing. As technology evolves, these investments will be crucial in shaping Hong Kong’s position in the global digital landscape.

The Hong Kong data center market presents exciting growth opportunities. Hong Kong can solidify its position as a leading data center hub in the APAC data center market by addressing land constraints, optimizing energy usage, and staying ahead of technological advancements. Furthermore, the data center construction cost per watt in Hong Kong ranges between $8.5 and $10, making it amongst the costliest APAC markets to develop a data center facility after Singapore and Japan.

KEY HIGHLIGHTS

• The Hong Kong data center market is witnessing immense growth through several investments from global and local data center operators. Some of the major colocation operators in the market include SUNeVision Holdings (iAdvantage), Equinix, Digital Realty, Vantage Data Centers, NTT DATA, Global Switch, BDx (Big Data Exchange) and AirTrunk.
• The widespread use of cloud services is powering the growth of the Hong Kong data center market, the implementation of artificial intelligence (AI), handling large-scale data (Big Data), the Internet of Things (IoT), the rollout of 5G networks, improved connectivity, and the ongoing process of digital transformation.
• Cloud giants like Google, Amazon Web Services, Microsoft, Alibaba Cloud, Huawei Cloud, and Tencent Cloud have established their presence in Hong Kong, each with dedicated cloud regions.
• Hong Kong has an acute land shortage for data center development. The government supports the data center market by providing industrial land. Owing to the land shortage, the country is expected to witness growth in brownfield developments.
• The government has introduced initiatives such as the Data Center Facilitation Unit (DCFU) to support the growth of the Hong Kong data center market. This effort seeks to attract substantial investments, improve infrastructure, promote industry collaborations, and create a favorable environment for data center operations.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available in terms of investment, area, power capacity, and Hong Kong colocation market revenue.
• An assessment of the data center investment in Hong Kong by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• This report details a detailed study of the existing Hong Kong data center market landscape, provides in-depth market analysis, and makes insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Hong Kong
  • Facilities Covered (Existing): 54
  • Facilities Identified (Upcoming): 12
  • Coverage: 6+ Locations
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in the Hong Kong
  • Colocation Market Revenue & Forecast (2023-2029)
  • Wholesale vs. Retail Colocation Revenue (2023-2029)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
• The Hong Kong data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• This report provides a comprehensive analysis of the industry's latest trends, growth rate, potential opportunities, growth restraints, and prospects.
• This section provides a business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

• The market is witnessing investment from major colocation and local operators that are investing significantly in the market. Some of the key colocation investors in the Hong Kong data center market are SUNeVision Holdings (iAdvantage), GDS Services, Equinix, AirTrunk, Vantage Data Centers, iTech Tower Data Centre Services, China Mobile International, BDx (Big Data Exchange) and others.
• The colocation market is booming, and investment and real estate firms such as Goodman, ESR, Mapletree Investments, and Angelo Gordon are developing core and shell facilities. 
• Goodman is among the major investors in the Hong Kong data center market and is continuously expanding its presence. In March 2024, the company announced the construction of the new Texaco data center facility in Tsuen Wan. The brownfield construction facility is likely to go online by 2026.
• Telecom companies in Hong Kong, such as China Mobile Hong Kong (CMHK), SmarTone, Hutchison Telecommunications Hong Kong Holdings (HTHKH)’s brand 3, and CSL Mobile, a subsidiary of Hong Kong Telecommunications (HKT), are responsible for the deployment of commercial 5G services across the country. The country will likely be covered entirely or partially under 5G technology.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Tseung Kwan O
  • Kwai Chung
  • Tsuen Wan
  • Fanling
  • Fo Tan
  • Chai Wan
  • Tai Po
  • Other Location
• List of Upcoming Facilities in the Region (Area and Power Capacity)
  • Tseung Kwan O
  • Kwai Chung
  • Tsuen Wan
  • Fanling
  • Fo Tan
  • Chai Wan
  • Tai Po
  • Other Location

REPORT COVERAGE:

This report analyses the Hong Kong data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Tower, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Building & Engineering Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • DCIM
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Network, Atos, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise (HPE), Huawei Technologies, IBM, Inspur, Lenovo, NetApp.
• Data Center Construction Contractors & Sub-Contractors: Arup, AtkinsRéalis, Aurecon, BYME Engineering, Chung Hing Engineers Group, Cundall, DSCO Group, Gammon Construction, ISG, Studio One Design.
• Support Infrastructure Providers: ABB, Airedale, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, KOHLER, Legrand, Mitsubishi Electric, Piller Power Systems, Rittal, Schneider Electric, Siemens, STULZ, Sumber, Vertiv.
• Data Center Investors: AirTrunk, BDx, CITIC Telcom International, China Mobile International (CMI), China Unicom, Digital Realty, Equinix, ESR, GDS Services, Global Switch, Goodman, iTech Towers Data Centre Services, NTT DATA, SUNeVision Holdings (iAdvantage), Telehouse, Towngas Telecom (TGT), Vantage Data Centers.
• New Entrants: Angelo Gordon and Mapletree Investments.