Data centre vacancies to ease as future supply mostly pre-leased: CBRE

Most upcoming pipelines will come from retrofitting or redeveloping existing industrial sites.

Vacancy rates for data centres in Hong Kong SAR, currently above 20%, are expected to decrease as the upcoming pipeline is 80% or above pre-committed, according to CBRE’s research report.

The near-term pipeline will predominantly come from the retrofitting or redevelopment of existing industrial facilities.

In the longer term, a 10-hectare site in the Northern Metropolis, with a potential gross floor area of 2.7 million sq. ft., is planned for development, with rezoning efforts starting in late 2024.

The main demand for data centre space comes from IT service providers, e-commerce, and banks from Mainland China and Hong Kong SAR, expanding their digital infrastructure.

Moreover, some occupiers in Singapore are considering taking up colocation space in Hong Kong SAR due to limited availability within Singapore.