COMMERCIAL PROPERTY | Staff Reporter, Hong Kong

Mapletree acquires $813m land for its first data centre

The data centre is expected to be completed in 2023.

Mapletree TM (HKSAR) Limited, a wholly owned subsidiary of Mapletree Investments Pte Ltd, has acquired a parcel of land located in Fanling Sheung Shui Town in New Territories for $813m.

This industrial site is approximately 4,000 sqm. The plan is to have it developed into Mapletree’s first data centre Hong Kong SAR with a maximum gross floor area of 20,140 sqm.

This proposed development can deliver up to 50MVA of building power and can be leased to an end-user or data centre operator by 2023.

Wong Mun Hoong, Mapletree's regional chief executive officer for Australia and North Asia, said the land acquisition is a welcome development given the increase of demand for data centres in Hong Kong SAR.

“We are excited about winning this development land parcel. Long-term macro drivers such as growing cloud computing, e-commerce as well as impending 5G network, are expected to drive demand for data centres,” he said.

“Hong Kong SAR stands out as an attractive location for data centres with its advanced telecommunication infrastructure, reliable power supply at reasonable cost, limited climate risks as well as strong demand from local corporations for cloud services,” he added.

The planned development is strategically located approximately six kilometres away from Luohu, opening possibilities for connectivity for Chinese cloud players in Shenzen.

There is also the possibility of offering strong connectivity to major cities in Mainland China for being situated near interconnection points Man Kam To and Lok Ma Chau.

Mapletree owns the landmark Festival Walk retail and office property held by Mapletree North Asia Commercial Trust, and nine logistics properties operated by Mapletree Logistics Trust.

Mapletree also owns a portfolio of data centres in Singapore and United States, operating under Mapletree Industrial Trust.

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