Hong Kong Data Center Colocation Market Growth Insights – Utilized White Floor Area to Reach 7.06 Million Sq. Ft., IT Power Capacity to Exceed 1,390 MW, and Utilized Racks to Surpass 168.26 Thousand Units by 2031.

Hong Kong Data Center Colocation Market - Supply & Demand Analysis 2026-2031

HONG KONG DATA CENTER COLOCATION MARKET SIZE REPORT

The Hong Kong data center colocation market size was valued at USD 1.57 billion in 2025 and is expected to reach USD 2.75 billion by 2031, growing at a CAGR of 9.79% during the forecast period. Hong Kong is strengthening its position as one of the most attractive destinations for the development of colocation facilities and hosts more than around 56 operational colocation facilities spread across multiple locations, including Tsuen Wan, Kwai Chung, Tseung Kwan O, Fo Tan, Chai Wan, Fanling, Tai Po, and other locations. Tseung Kwan O has established itself as one of the prominent locations attracting colocation investments from multiple global and local colocation service providers. Moreover, Hong Kong is also experiencing the development of around 15 new data centers, which are either under construction or in the planning stage.

Hong Kong operates as one of the major Special Administrative Regions (SARs) of China, benefiting companies across a wide range of sectors, including data centers. The organizations operating in Hong Kong benefit from exemptions from all types of customs duties. Additionally, Hong Kong does not impose tariff quotas, value added tax (VAT), or goods and services tax (GST). Companies operating their facilities in Hong Kong also benefit from lower tax rates and free trade policies. Moreover, the city has the presence of around three major industrial parks that support enterprises across technology, data centers, and other sectors to establish and operate their facilities efficiently.

Businesses across multiple sectors, including cloud, technology, entertainment, banking, media, finance, retail, e-commerce, government, and other sectors, are increasingly transitioning their core IT infrastructure, digital data, and workloads to cloud platforms to leverage advanced technologies like Artificial Intelligence, Internet of Things, and others, while enhancing operational efficiency. For example, in April 2025, the Hong Kong-based banking firm Airstar Bank transitioned its entire digital workloads to the Tencent cloud to reduce operational costs, enhance operational efficiency, and optimize resource efficiency.

The average rack power density of rack cabinets in Hong Kong data centers is rising gradually year-on-year, owing to the rapid adoption of artificial intelligence and high-performance computing workloads across the city. Colocation companies like Equinix, DayOne, SUNeVision Holdings, and other firms are increasingly investing to install racks that can offer rack power densities of over 50 kW per rack in the city.

As the demand for processing advanced and complex Artificial Intelligence and high-performance computing workloads is rising significantly, the need for advanced AI-ready infrastructure is rising across Hong Kong data centers. The colocation operators are increasingly prioritizing the installation of GPU clusters, high-density racks, and advanced liquid cooling techniques in their facilities. For instance, the data center operated by Global Switch in Tseung Kwan O, Hong Kong, is equipped with a direct-to-chip liquid cooling technique to enhance thermal management in the facility.

Some of the prominent colocation companies operating in the Hong Kong data center industry include Equinix, SUNeVision Holdings, Vantage Data Centers, Telehouse, NTT DATA, China Mobile International, China Unicom, China Telecom, AirTrunk, OneAsia Network, Goodman, DayOne, Digital Realty, BDx Data Centers, Global Switch, and other firms. Additionally, the market is also witnessing the entry of several new entrants like Mapletree, Runze Technology (Range IDC), Chinachem Group, ESR, TPG Angelo Gordon, and other firms.

In Hong Kong, data center operators are increasingly partnering with utility firms and renewable energy providers to source green and renewable electricity to power their data center operations, aligning with Hong Kong’s broader sustainability goals. For example, in November 2024, SUNeVision Holdings collaborated with the Hong Kong-based utility firm CLP Power and Green Valley Landfill by signing a six-year contract to source renewable energy certificates to power SUNeVision Holdings’ Mega data center campus in Hong Kong.

WHAT'S INCLUDED?

1. A transparent research methodology and insights on the colocation demand and supply aspect of the market.
2. Market size available in terms of utilized white floor area, IT power capacity, and racks.
3. Market size available in terms of Core & Shell Vs Installed Vs Utilized IT Power Capacity, along with the occupancy %.
4. The study of the existing Hong Kong data center colocation market landscape, and insightful predictions about the Hong Kong data center colocation market size during the forecast period.
5. An analysis of the current and future colocation demand in Hong Kong by several industries.
6. The study on the sustainability status in Hong Kong
7. Analysis of current and future cloud operations in Hong Kong.
8. The snapshot of upcoming submarine cables and existing cloud-on-ramps services in Hong Kong
9. Snapshot of existing and upcoming third-party data center facilities in Hong Kong
10. Facilities Covered (Existing): 56
11. Facilities Identified (Upcoming): 15
12. Coverage: 7+ Locations
13. Existing vs. Upcoming (White Floor Area)
14. Existing vs. Upcoming (IT Load Capacity)
15. Data center colocation market in Hong Kong
16. Colocation Market Revenue & Forecast (2025-2031)
17. Retail Colocation Revenue (2025-2031)
18. Wholesale Colocation Revenue (2025-2031)
19. Retail Colocation Pricing along with Add-ons
20. Wholesale Colocation Pricing along with the pricing trends.
21. An analysis of the latest trends, potential opportunities, growth restraints, and prospects for the colocation data center industry in Hong Kong.
22. Competitive landscape including Hong Kong data center colocation market share analysis by the colocation operators based on IT power capacity and revenue.
23. Vendor landscape of each existing and upcoming colocation operator based on existing/ upcoming count of data centers, white floor area, IT power capacity, and data center location.