Jabez Tan on Hong Kong Data Centre Market

  • February 12, 2019

Source: Data Center Knowledge

Hong Kong’s Cloud Data Center Boom

As a network gateway between mainland China and the West, Hong Kong is a magnet for hyperscale cloud platforms from both sides of the gateway.

American cloud providers anxious to grab share of the world’s largest and fastest growing internet market in mainland China and Chinese hyperscale platforms attempt to grow a more meaningful presence outside their homeland are driving a boom in the Hong Kong data center market.

The amount of hyperscale cloud data center capacity in Hong Kong increased 42 percent in the past year, from 43.4MW in 2017 to 61.7MW in 2018, according to Structure Research.

Because of its location just outside mainland China, Chinese companies use Hong Kong data centers as a springboard for international expansion, while international companies serving Chinese customers use Hong Kong as the alternative to building physical infrastructure inside China, which for outsiders is a much more complicated affair.

While new data center construction will satisfy the needs of hyperscalers and other colocation customers in the next several years, a shortage of land in Hong Kong could hinder data center growth four or five years from now, according to Structure, a Toronto research and consulting firm.

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