Jabez Tan talks about Hong Kong Data Centre Market

• June 1, 2016

Source: South China Morning Post

Jabez Tan, the research director at Canadian consulting firm Structure Research, said cloud infrastructure deployments are “a significant driver of data centre growth in Hong Kong”.

“The city has traditionally been viewed as an ideal location to enter the Chinese market due to its proximity and political ties,” Tan said.

Nelson expected a cost-effective set up of data centres, estimating initial expenses to range from US$2 million and US$3 million each in the two locations targeted by NetSuite.

That low estimate means that NetSuite plans to enter into co-location deals with data centre services providers in Hong Kong and Singapore.

Co-location is an outsourced data centre service in which the operator provides the facility, while the customers or tenants supply their own servers and networking equipment.

“There has been a surge in the construction of co-location or third-party data centres in Hong Kong,” Tan said.

Data from Structure Research showed that Hong Kong’s co-location market is projected to increase 17 per cent to US$828.7 million next year, up from an estimated US$709.3 million this year.

“With data centre space utilisation in Hong Kong greater than 50 per cent and power utilisation at less than 50 per cent, we see there is still plenty of runway for the Hong Kong data centre market,” Tan said.