The Hong Kong Report provides an overview of the Data Centre colocation market together with a 5-year Data Centre raised floor space, power, pricing & revenue forecast from the end of 2020 to the end of 2025.
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DCP identifies the 5 key trends in the report:
The “China-ification” of the Hong Kong economy is also being applied to the Data Centre segment - There is a large amount of Chinese-funded investment flooding into Hong Kong, into the stock market, land and other asset purchases. This is also starting to have an impact on the Hong Kong Data Centre market, particularly where land costs remain at a premium with development land in short supply.
Recently in Hong Kong (unlike Singapore) land has not been reserved by authorities for Data Centre development with Data Centre Providers having to pay the full market rates for industrial land - rates which have now increased to record levels.
In July 2020, China Mobile International paid a record fee for a Hong Kong industrial site at auction (a cost of over USD $723 million). And Chinese-based Data Centre Provider GDS Holdings Ltd is building two new Data Centre facilities in Hong Kong for existing Chinese clients. Increasingly the rising cost of land in Hong Kong may be a deterrent to most Data Centre Providers except for the Chinese Data Centre Provider.
Hong Kong is unique in Asia with the size of the financial services segment in Data Centres- Hong Kong has a large financial services segment, which ties with the cloud segment as the largest Hong Kong customer segment - with up to 30 per cent of Hong Kong Data Centre customers from financial services.
The Hong Kong market is similar to the London Data Centre market in the dominance of the financial services segment - and is ahead of Singapore - but is behind New York as a percentage of Data Centre customers. The Hong Kong financial services segment is also growing its online presence with a number of virtual licenced banks launching services, which is supporting the local Data Centre market.
Hong Kong also has a shortage of land for future Data Centre development - The cost of land in Hong Kong is a problem for future Data Centre development, with auctions facing competition from property companies buying land for housing or hotel development.
Unlike Singapore, the Hong Kong Government has not recently reserved new space for Data Centre development - when previously Government-owned land in TKO was reserved for Data Centres (including Global Switch, NTT, i-advantage and Telehouse). The cost of land means that Hong Kong Data Centre pricing will also continue to be high.
Hong Kong is competing with Singapore as the key Data Centre hub in Asia - Overall Hong Kong has over 285,000 m2 of 3rd party Data Centre space available as of the end of 2020 - with Singapore having around 400,000 m2 of 3rd party Data Centre space. In essence Singapore has established itself as a Data Centre hub in the Asia Pacific region - and Hong Kong has established itself as a gateway for Chinese investment for the rest of Asia.
Browse our full report with Table of Content : https://www.bharatbook.com/marketreports/hong-kong-data-centre-landscape-2021-to-2025/2323050
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