Data centre growth slows as geopolitical tensions weigh in

Leasing activity was “relatively flat” in the first half of 2025, with just 9.6MW taken up. 

Hong Kong’s data centre market has slowed over the past year as geopolitical uncertainty and regulatory pressures weigh on new supply and leasing demand, according to Knight Frank.

The report noted that whilst Hong Kong remains home to a strong base of local and regional operators, the pace of new supply has eased.

Projects completed between 2023 and 2025 included SUNeVision’s MEGA Gateway (24MW), GDS’s Tsuen Wan West project (17MW), Equinix’s HK6 expansion (12MW) and NTT’s Tsuen Wan facility (10MW).

However, Knight Frank said that supply growth has slowed in the past 12 months due to reduced foreign capital inflows and ongoing US–China political tensions

Leasing activity was described as “relatively flat” in the first half of 2025, with just 9.6MW taken up. Knight Frank attributed this to both global economic headwinds and enterprises adopting a wait-and-see stance amid political uncertainty

Key operators include SUNeVision, GDS, Equinix and NTT. SUNeVision is the dominant player, accounting for around 57% of Hong Kong’s future pipeline supply, according to the report.

Despite the slowdown, Knight Frank said that local demand drivers remain intact, supported by Hong Kong’s role as a finance and telecom hub.

Still, it cautioned that the market may remain subdued in the near term, with landlords and operators potentially needing to offer more competitive pricing to attract tenants.