It has 4 million sqft of space either being leased or transacted.
Hong Kong emerged as one of the top four attractive Tier-1 markets for international investors, operators, and end-users, according to Asia Pacific Data Center Trends H1 report by CBRE Research.
CBRE adds that Hong Kong’s data centre market has been very active during the past 24 months, with 4 million sqft of space either being leased or transacted for redevelopment.
Driven by the growth in global mobile data traffic, Hong Kong’s total IT capacity increased by 27% YoY, to 379.6MW in Q1 from 299.9MW in Q1 2019, with over 215MW in the upcoming supply pipeline anticipated in the next few years.
According to the report, most new data centre supply in recent years is located in Tseung Kwan O, due to the area’s relatively high availability of land. However, end-users with deployments in the district are increasingly seeking capacity in New Territories, Kowloon and Hong Kong Island to ensure diversity in fiber and redundancy.
Furthermore, the growing importance of Big Data, Industry 4.0, Internet of Things, 5G and cloud computing has seen data centres take on an increasingly prominent role resulting from the rise of remote working during the pandemic.
CBRE’s 2020 Asia Pacific Investor Intentions Survey also found that 30% of investors in the region are considering purchasing data centres this year, a substantial increase from the 18% recorded in 2019, and the figure represents the most preferred alternative sectors for investment among respondents.
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