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Hong Kong Regains its Spot in Global Top Ten Data Center Markets

Ranked outside the overall top 10 markets last year, Hong Kong makes a big jump in 2022, coming in at sixth place globally and second in Asia-Pacific.

Data Center Market is slowly progressing its way in the Asian region and is set to become the world’s largest data center region over the next decade.

Hong Kong Data Center MarketsCushman & Wakefield, in its latest 2022 Data Center Global Market Comparison, has recently stated that Hong Kong, Singapore and Sydney are ranked among the top 10 data center markets in the world.

Construction totals continue to grow globally, with 4.1 gigawatts (GW) currently underway in the markets covered, up from 2.9 GW in the previous study and 1.6 GW in the year before that.

The largest clients continue to require larger builds, with 100-megawatt campuses becoming increasingly common.

Ranked outside the overall top 10 markets last year, Hong Kong makes a big jump in 2022, coming in at sixth place globally and second in Asia-Pacific.

John Siu, Managing Director, Hong Kong at Cushman & Wakefield said: “Hong Kong offers a robust development pipeline, excellent networks and all major cloud services are available. The city also retains its crown as the globally lowest taxed data center jurisdiction. As a global financial and business capital, with a long history of pro-business policies, it accordingly offers a robust data center sector.”

Siu added, “Strong demand from data center investors and operators have triggered a high volume of transactions in 2021. For example, Mapletree acquired an industrial site via a government tender for a ground-up data center development, totaling circa 217,000 sf; ESR bought an industrial building (circa 294,000 sf) for a wholesale data center conversion; whereas GDS also purchased an industrial building for a data center redevelopment (circa 277,000 sf). In the next 5-year horizon, the city’s total new supply will amount to 5.5 million sf. That said, the supply pipeline in the medium to long term will be constrained by a shortage of land and power supply in the popular data center submarkets, such as Tsuen Wan and Kwai Chung. To support the city’s development as a world-class data center market, it is, therefore, crucial for the government and power suppliers to break the bottleneck and increase land supply and power capacity into these submarkets.”

“The horizon for the data center industry across the Asia Pacific region is exceptionally bright, thanks to deep hyperscale demand and the billions of dollars in development in progress to support these key tenants,” said Kevin Imboden, Cushman & Wakefield’s Director of Research for the Data Center Advisory Group. “The 1.3 gigawatts under construction in the APAC markets reviewed is a small fraction of what is in planning regionally, with much action and growth coming over the next decade.”

Shanghai retains its position as the world’s fourth-largest data center market by total market size, with the market capability of more than 0.6 gigawatts surpassed only by Northern Virginia, London and Tokyo. Beijing was ranked 13th for the same indicator.

Further growth in the Asia Pacific is expected throughout at least the next five to 10 years, as the region requires entirely new builds due to a lack of existing infrastructure for retrofit.

Globally, regions across Latin America and Africa are also expected to enjoy considerable growth in coming years, as new undersea cables are bringing faster access to many markets for the first time. Secondary markets across the world continue to grow, with many soon to reach the current primary market size.

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Aishwarya Saxena

A book geek, with creative mind, an electronics degree, and zealous for writing.Creativity is the one thing in her opinion which drove her to enter into editing field. Allured towards south Indian cuisine and culture, love to discover new cultures and their customs. Relishes in discovering new music genres.

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