Hong Kong Data Center Construction Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 13.25 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Hong Kong Data Center Construction Market Analysis
The Hong Kong Data Center Market size is projected to register a CAGR of 13.25% during the forecast period.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Hong Kong data center construction market is expected to reach 1777.91 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 6.3 million sq.ft. by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 318247 units by 2029. Tseung Kwan O-Hong Kong is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 12 submarine cable systems connecting Hong Kong, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Asia Cable Link AC, which stretches over 6000 Kilometers with landing points from Hong Kong to China.
Hong Kong Data Center Construction Market Trends
IT and Telcom Segment is Expected to Gain Significant Market Share
- The demand for the telecom segment is expected to increase with the increase in the number of smartphone users in Hong Kong. According to the Census and Statistics Department of Hong Kong, the smartphone penetration rate between April 2021 to July 2021 was 92.9%, which indicates an increased number of users.
- The number of people using the internet in China was 5.07 million in 2012, which is expected to increase to 7.05 million by 2029. The average time spent by users in Hong Kong on smartphones is estimated to be around 3 hours and 31 minutes. The growing number of smartphone users in Hong Kong is expected to propel the growth of the telecom segment in the country.
- Further, the government of Hong Kong is adopting a multi-pronged approach in facilitating the development and application of the 5G network and plans to launch 5G services very soon. The low latency rate of 5G technology would likely drive the demand for cloud storage, real-time data accessing, and streaming. Data centers would likely not only expand but also need upgrades amid this network transformation.
- Moreover, in 2022, there were five dominating mobile network operators active in Hong Kong. The five operators were: China Mobile Hong Kong Company Limited, Hong Kong Telecommunications Limited, Hutchison Telephone Company Limited, SmarTone Mobile Communications Limited, and CSL Mobile Limited. These players have been constant, and with the rising population, the dependency of these operators on data centers has increased, resulting in increased construction of data centers in the country.
Tseung Kwan O is the most preferred hotspot in Hong Kong
- Tseung Kwan O is the most preferred hotspot in Hong Kong, which is expected to increase from an IT load capacity of 228.9 MW in 2022 to 476.9 MW by 2029 at a CAGR of 8.6%. The hotspot has gained traction due to numerous smart city projects, growing IT businesses, and a rising number of users using digitized applications for streaming content, playing online games, and others.
- Owing to the above-mentioned factors, companies that provide better services to consumers have increased their rack capacities, thus increasing the IT load consumption of hotspots.
- Chai Wan is an industrial region, and automation in the industry is expected to trigger the demand for data centers in the country.
- Due to the requirements made by the manufacturing industry and the IT industry, companies require high-end specification facilities such as tier 4 facilities. Owing to the growing business requirements, the Chai Wan market is expected to grow from 110.8 MW in 2023 to 293.8 MW by 2029 at a CAGR of 17.6%.
- Geographically, Wan Chai is the crossroads between the Central District, the Western District (West Point/Central), and the Eastern District (Causeway Bay/North Point). The boulevard connects major development areas along the north coast of Hong Kong Island. Transport infrastructure is efficient, comfortable, and easily accessible.
Hong Kong Data Center Construction Industry Overview
The Hong Kong data center construction market is consolidated with a few major players, which are Aurecon, BYME Engineering, Schneider Electric, Mitsubishi Electric, and Vertiv Group.
In June 2023, AirTrunk announced to establish a second data center in Hongkong to support the demand for digital infrastructure. The company aims to establish 15 MW and expects to operate by 2024. Such investments provide opportunities for the vendors studied in the market.
In August 2023, ESR secured a Sustainability-Linked Loan (SLL) of USD 250 million to develop a data center of 21.3 MW in Hong Kong. Such developments are providing opportunities for the vendors studied in the market.
Hong Kong Data Center Construction Market Leaders
Aurecon
BYME Engineering
Schneider Electric
Mitsubishi Electric
Vertiv Group
*Disclaimer: Major Players sorted in no particular order
Hong Kong Data Center Construction Market News
- November 2022: The company announced the opening of its new regional office in Kowloon, Hong Kong. The office would help the company strengthen its expansion and would cater to business needs such as engineering, construction, and sales in the Asia-Pacific region.
- November 2022: The company announced the launch of BDx Indonesia, following the completion of a USD 300 million joint venture agreement with PT Indosat Tbk (Indosat Ooredoo Hutchison or IOH) and PT Aplikanusa Lintasarta, Big Data Exchange (BDx)
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Major Initiatives Undertaken by Governments to Promote Digital Economy and Connectivity Infrastructure
4.2.2 Rising Adoption of Hyperscale Data Centers
4.3 Market Restraints
4.3.1 Environmental, Cost, and Workforce-related Challenges
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. Key Industry Statistics
5.1 Planned/Under Construction IT Load Capacity
5.2 Planned/Under Construction Raised Floor Space
5.3 Planned/Under Construction Submarine Cable
6. MARKET SEGMENTATION
6.1 Tier Type
6.1.1 Tier 1 and 2
6.1.2 Tier 3
6.1.3 Tier 4
6.2 Data Center Size
6.2.1 Small
6.2.2 Medium
6.2.3 Large
6.2.4 Mega
6.2.5 Massive
6.3 Infrastructure
6.3.1 Cooling Infrastructure
6.3.1.1 Air-based Cooling
6.3.1.2 Liquid-based Cooling
6.3.1.3 Evaporative Cooling
6.3.2 Power Infrastructure
6.3.2.1 UPS Systems
6.3.2.2 Generators
6.3.2.3 Power Distribution Unit (PDU)
6.3.3 Racks and Cabinets
6.3.4 Servers
6.3.5 Networking Equipment
6.3.6 Physical Security Infrastructure
6.3.7 Design and Consulting Services
6.3.8 Other Infrastructure
6.4 End-User
6.4.1 IT & Telecommunication
6.4.2 BFSI
6.4.3 Government
6.4.4 Healthcare
6.4.5 Other End User
7. COMPETITIVE LANDSCAPE
8. Company Profiles
8.1 Aurecon
8.2 Telkomsigma
8.3 NTT Communications Corporation
8.4 XL Axiata Tbk PT (Princeton Digital Group)
8.5 GTN Data Center
8.6 Arup Group
8.7 Lintasarta
8.8 Indosat Tbk PT
8.9 BYME Engineering
8.10 Mitsubishi Electric
8.11 Schneider Electric
8.12 PT. Faasri Utama Sakti
8.13 JupiterDC
8.14 Biznet Networks
8.15 Project Planning Service
8.16 Gulf Energy Development Public Company Limited
8.17 Space DC Pte Ltd
8.18 Vertiv Group
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. MARKET OPPORTUNITIES AND FUTURE TRENDS
Hong Kong Data Center Construction Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services. Under data center construction, we are tracking the capital expenditure that was incurred while building the existing DC facilities and also estimating the future capex based on upcoming DC facilities.
Hong Kong Data Center Construction Market is segmented by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by Data Center Size (Small, Medium, Large, Massive, and Mega), by Infrastructure (Cooling Infrastructure (Air-based Cooling, Liquid-based Cooling, Evaporative Cooling), Power Infrastructure (UPS Systems, Generators, Power Distribution Unit (PDU), Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, Design and Consulting Services, and Other Infrastructure), and End User ( IT & Telecommunication, BFSI, Government, Healthcare, and Other End User). The market sizes and forecasts are provided in values of USD for all the above segments.
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Data Center Size | |
| Small | |
| Medium | |
| Large | |
| Mega | |
| Massive |
| Infrastructure | |||||
| |||||
| |||||
| Racks and Cabinets | |||||
| Servers | |||||
| Networking Equipment | |||||
| Physical Security Infrastructure | |||||
| Design and Consulting Services | |||||
| Other Infrastructure |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End User |
Frequently Asked Questions
What is the current Hong Kong Data Center Construction Market size?
The Hong Kong Data Center Construction Market is projected to register a CAGR of 13.25% during the forecast period (2024-2029)
Who are the key players in Hong Kong Data Center Construction Market ?
Aurecon, BYME Engineering, Schneider Electric, Mitsubishi Electric and Vertiv Group are the major companies operating in the Hong Kong Data Center Construction Market .
What years does this Hong Kong Data Center Construction Market cover?
The report covers the Hong Kong Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Hong Kong Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Hong Kong Data Center Construction Market Industry Report
Statistics for the 2024 Hong Kong Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hong Kong Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
