Colliers flags tight timeline for Sandy Ridge data centre cluster

Winning bid $581m under two-envelope tender.

Colliers said the successful bidder for the Sandy Ridge Data Facility Cluster site faces an aggressive delivery schedule, citing commitments to commence operations within 42 months and to provide 180,000 petaflops of computing power by 2032.

The Hong Kong government awarded the Sandy Ridge site, spanning more than 110,000 sq m, to Hong Kong Range Intelligent Computing Technology Company Limited on a 50-year land grant for development into an advanced data facility cluster for data centres and related industries.

Colliers said the tender used a two-envelope approach, weighting 70% to the non-premium proposal and 30% to the premium, and required bidders to demonstrate experience in developing and operating high-tier data centres.

It said the winning premium was $581m, and that market expectations had been for a lower land price than traditional land tenders due to the heavier non-premium weighting; based on an assumed gross floor area of 250,000 sq m, Colliers estimated an accommodation value of about $216 per sq ft.

Colliers said Sandy Ridge is a specialised industrial project requiring significant upfront capital expenditure and a strong data centre track record, so tender participation should not be compared directly with residential or commercial land sales. 

Execution will hinge on design, construction, electro-mechanical installation and testing, and power supply readiness.