Hong Kong Data Center Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Report Covers Hong Kong Data Center Market Companies & Industry Size and it is Segmented by Hotspot (Chai Wan, Shatin, Tseun Wan, Tseung Kwan O), by Data Center Size (Large, Massive, Medium, Mega, Small), by Tier Type (Tier 1&2, Tier 3, Tier 4) and by Absorption (Non-Utilized, Utilized)

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Hong Kong Data Center Market Size

Hong Kong Data Center Market Summary
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https://s3.mordorintelligence.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2029
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2023) USD 3.03 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Size (2028) USD 5.65 Billion
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg CAGR (2023 - 2028) 13.25 %
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Concentration High
https://s3.mordorintelligence.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Tier Type Tier 3

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Hong Kong Data Center Market Analysis

The Hong Kong Data Center Market size is expected to grow from USD 3.03 billion in 2023 to USD 5.65 billion by 2028, at a CAGR of 13.25% during the forecast period (2023-2028).

Hong Kong is one of the critical data center locations in the Asia-Pacific region due to the low tax rates and electricity costs, rich network capability, and suitable climate conditions. These factors are mainly attracting investments from across the world to support the growth of data centers in the country. For instance, in July 2020, China Mobile acquired an industrial site in Fo Tan for data center development for HKD 5.6 billion. The accommodation value of HKD 5,967 per sq ft is the highest on record for an industrial site.

  • Nearly all the central cloud and hosting service providers globally have established a presence in Hong Kong. According to Datacenters.com, there are presently 22 service providers and 43 data centers in Hong Kong. This comprises 42 colocation facilities, 29 cloud nodes, 13 Internet exchanges (IX), and ten disaster recovery and business continuity (DRBC) sites.
  • Hong Kong is a principal financial and international trading and logistics hub and is home to several regional offices and headquarters of global corporations. This generates a strong demand for secure data center facilities and services. Its proximity to China's Mainland is also a core strength, thus stressing the need for data centers in the region.
  • In particular, hyper-scale and international digital media content and public cloud service providers such as Amazon Web Services (AWS), Facebook, Google, and Alibaba Cloud have been fundamental in pushing demand for data center services, significantly enhancing their uptake of data center capacity in Asia and particularly in Hong Kong over the past few years, by building massive-scale platforms.
  • In July 2021, The Hong Kong-based telecom services provider PCCW agreed to sell its data center business to a New York-listed infrastructure REIT DigitalBridge Group for USD 750 million in a bid to focus on its main telecom business. PCCW operates facilities at nine data center locations in Hong Kong, Mainland China, and Malaysia. However, DigitalBridge only acquired the Powerbase HK (Hong Kong) and DC Malaysia (Malaysia) subsidiaries from PCCW.
  • 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.
  • However, with the onset of the COVID-19 pandemic, different supply chains across many industries are affected, including data center infrastructure. All significant components of a data center are built off-site, delivered, and then installed, indicating vulnerable breakage points for the market's supply chain.
  • Despite the ongoing COVID-19 outbreak and geopolitical uncertainties, the Hong Kong data center market activity has remained stable. In one of the most significant leasing transactions this year, the US-based data center, REIT Digital Realty, announced in July 2020 that it agreed to lease a newly established high computational data center at 11 Kin Chueng Street in Kwai Chung, the vendor's second data center facility.

Hong Kong Data Center Market Trends

This section covers the major market trends shaping the Hong Kong Data Center Market according to our research experts:

Tier 3 is the largest Tier Type

  • Tier 4 data centers lead Hong Kong's data center market based on tier capacity. Their IT load capacity is expected to increase from 330.3 MW in 2022 to 1092.3 MW by 2029 at a CAGR of 18.6%. A growing number of IT businesses and smart devices and increased use of varying digital applications have led to consumers opting for tier 4 data centers.
  • Tier 4 data centers offer high bandwidth, lower downtime, disaster recovery, low latency, and better connectivity. Clients, such as content providers that cannot afford a longer duration of downtime, prefer to use tier 4 data centers.
  • The increased use of streaming content, online gaming, and smart devices led to increased consumption in the country. Increased consumption of data and better services have led companies to opt for tier 4 data centers. However, growing smart city initiatives are expected to trigger the growth of Tier 3 data centers as well, with a CAGR of 5.9%.
Hong Kong Data Center Market: Hong Kong Data Center Market, CAGR, %, By Tier Type, 2023 - 2029

Hong Kong Data Center Industry Overview

The Hong Kong Data Center Market is fragmented, with the top five companies occupying 38.63%. The major players in this market are China Mobile International Ltd., Global Switch Holdings Limited, Hostdime, NTT Ltd. and Zenlayer Inc (sorted alphabetically).

Hong Kong Data Center Market Leaders

  1. China Mobile International Ltd.

  2. Global Switch Holdings Limited

  3. Hostdime

  4. NTT Ltd.

  5. Zenlayer Inc

*Disclaimer: Major Players sorted in no particular order

Hong Kong Data Center Market Concentration

Hong Kong Data Center Market News

  • November 2022: The company had announced the opening of its new regional office in Kowloon, Hong Kong. The office would help the company strengthen its expansion, and would cater business needs such as engineering, construction, and sales in the APAC 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).
  • August 2022: Global Switch announced plans of selling its announced plans of selling its USD11 billion business. The companies which plan to purchase the business are EQR, PAG, KKR, Gaw Capital and Stonepeak.

Hong Kong Data Center Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1. Study Assumptions & Market Definition

    2. 1.2. Scope of the Study​

    3. 1.3. Research Methodology

  2. 2. MARKET OUTLOOK

    1. 2.1. IT Load Capacity

    2. 2.2. Raised Floor Space

    3. 2.3. Colocation Revenue

    4. 2.4. Installed Racks

    5. 2.5. Rack Space Utilization

    6. 2.6. Submarine Cable

  3. 3. KEY INDUSTRY TRENDS

    1. 3.1. Smartphone Users

    2. 3.2. Data Traffic Per Smartphone

    3. 3.3. Mobile Data Speed

    4. 3.4. Broadband Data Speed

    5. 3.5. Fiber Connectivity Network

    6. 3.6. Regulatory Framework

    7. 3.7. Value Chain & Distribution Channel Analysis

  4. 4. MARKET SEGMENTATION

    1. 4.1. Hotspot

      1. 4.1.1. Chai Wan

      2. 4.1.2. Shatin

      3. 4.1.3. Tseun Wan

      4. 4.1.4. Tseung Kwan O

      5. 4.1.5. Rest of Hong Kong

    2. 4.2. Data Center Size

      1. 4.2.1. Large

      2. 4.2.2. Massive

      3. 4.2.3. Medium

      4. 4.2.4. Mega

      5. 4.2.5. Small

    3. 4.3. Tier Type

      1. 4.3.1. Tier 1 and 2

      2. 4.3.2. Tier 3

      3. 4.3.3. Tier 4

    4. 4.4. Absorption

      1. 4.4.1. Non-Utilized

      2. 4.4.2. Utilized

        1. 4.4.2.1. By Colocation Type

          1. 4.4.2.1.1. Hyperscale

          2. 4.4.2.1.2. Retail

          3. 4.4.2.1.3. Wholesale

        2. 4.4.2.2. By End User

          1. 4.4.2.2.1. BFSI

          2. 4.4.2.2.2. Cloud

          3. 4.4.2.2.3. E-Commerce

          4. 4.4.2.2.4. Government

          5. 4.4.2.2.5. Manufacturing

          6. 4.4.2.2.6. Media & Entertainment

          7. 4.4.2.2.7. Telecom

          8. 4.4.2.2.8. Other End User

  5. 5. COMPETITIVE LANDSCAPE

    1. 5.1. Market Share Analysis

    2. 5.2. Company Landscape

    3. 5.3. Company Profiles

      1. 5.3.1. AirTrunk Operating Pty Ltd.

      2. 5.3.2. BDx Data Center Pte. Ltd.

      3. 5.3.3. China Mobile International Ltd.

      4. 5.3.4. Digital Realty Trust, Inc.

      5. 5.3.5. Equinix, Inc.

      6. 5.3.6. Global Switch Holdings Limited

      7. 5.3.7. Hostdime

      8. 5.3.8. NTT Ltd.

      9. 5.3.9. Rackspace Technology Inc.

      10. 5.3.10. SuneVision Holdings Ltd

      11. 5.3.11. Vantage Data Centers, LLC

      12. 5.3.12. Zenlayer Inc

    5. 5.4. LIST OF COMPANIES STUDIED

  6. 6. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS

  7. 7. APPENDIX

    1. 7.1. Global Overview

      1. 7.1.1. Overview

      2. 7.1.2. Porter’s Five Forces Framework

      3. 7.1.3. Global Value Chain Analysis

      4. 7.1.4. Global Market Size and DROs

    2. 7.2. Sources & References

    3. 7.3. List of Tables & Figures

    4. 7.4. Primary Insights

    5. 7.5. Data Pack

    6. 7.6. Glossary of Terms

List of Tables & Figures

  1. Figure 1:  
  2. HONG KONG DATA CENTER MARKET, IT LOAD CAPACITY, VOLUME IN MW, 2017 - 2029
  1. Figure 2:  
  2. HONG KONG DATA CENTER MARKET, RAISED FLOOR SPACE, VOLUME IN SQ. FT.(000'), 2017 - 2029
  1. Figure 3:  
  2. HONG KONG DATA CENTER MARKET, COLOCATION REVENUE, VALUE IN USD MILLION, 2017 - 2029
  1. Figure 4:  
  2. HONG KONG DATA CENTER MARKET, INSTALLED RACKS, VALUE IN UNIT, 2017 - 2029
  1. Figure 5:  
  2. HONG KONG DATA CENTER MARKET, RACK SPACE UTILIZATION, VALUE IN (%), 2017 - 2029
  1. Figure 6:  
  2. HONG KONG DATA CENTER MARKET, SMARTPHONE USERS, VOLUME IN MILLION, 2017 - 2029
  1. Figure 7:  
  2. HONG KONG DATA CENTER MARKET, DATA TRAFFIC PER SMARTPHONE, VOLUME IN GB, 2017 - 2029
  1. Figure 8:  
  2. HONG KONG DATA CENTER MARKET, MOBILE DATA SPEED, VOLUME IN MBPS, 2017 - 2029
  1. Figure 9:  
  2. HONG KONG DATA CENTER MARKET, BROADBAND SPEED, VOLUME IN MBPS, 2017 - 2029
  1. Figure 10:  
  2. HONG KONG DATA CENTER MARKET, FIBER CONNECTIVITY NETWORK, VOLUME IN KILOMETER, 2017 - 2029
  1. Figure 11:  
  2. HONG KONG DATA CENTER MARKET, VOLUME, MW, 2017 - 2029
  1. Figure 12:  
  2. HONG KONG DATA CENTER MARKET, BY HOTSPOT, VOLUME IN MW, 2017 - 2029
  1. Figure 13:  
  2. HONG KONG DATA CENTER MARKET, SHARE(%), BY HOTSPOT, 2017 - 2023 - 2029
  1. Figure 14:  
  2. HONG KONG DATA CENTER MARKET, CHAI WAN, VOLUME IN MW, 2017 - 2029
  1. Figure 15:  
  2. HONG KONG DATA CENTER MARKET, BY DATA CENTER SIZE, CHAI WAN, VOLUME SHARE (%), 2022 - 2029
  1. Figure 16:  
  2. HONG KONG DATA CENTER MARKET, SHATIN, VOLUME IN MW, 2017 - 2029
  1. Figure 17:  
  2. HONG KONG DATA CENTER MARKET, BY DATA CENTER SIZE, SHATIN, VOLUME SHARE (%), 2022 - 2029
  1. Figure 18:  
  2. HONG KONG DATA CENTER MARKET, TSEUN WAN, VOLUME IN MW, 2017 - 2029
  1. Figure 19:  
  2. HONG KONG DATA CENTER MARKET, BY DATA CENTER SIZE, TSEUN WAN, VOLUME SHARE (%), 2022 - 2029
  1. Figure 20:  
  2. HONG KONG DATA CENTER MARKET, TSEUNG KWAN O, VOLUME IN MW, 2017 - 2029
  1. Figure 21:  
  2. HONG KONG DATA CENTER MARKET, BY DATA CENTER SIZE, TSEUNG KWAN O, VOLUME SHARE (%), 2022 - 2029
  1. Figure 22:  
  2. HONG KONG DATA CENTER MARKET, REST OF HONG KONG, VOLUME IN MW, 2017 - 2029
  1. Figure 23:  
  2. HONG KONG DATA CENTER MARKET, BY DATA CENTER SIZE, REST OF HONG KONG, VOLUME SHARE (%), 2022 - 2029
  1. Figure 24:  
  2. HONG KONG DATA CENTER MARKET, BY DATA CENTER SIZE, VOLUME IN MW, 2017 - 2029
  1. Figure 25:  
  2. HONG KONG DATA CENTER MARKET, SHARE(%), BY DATA CENTER SIZE, 2017 - 2023 - 2029
  1. Figure 26:  
  2. HONG KONG DATA CENTER MARKET, LARGE, VOLUME IN MW, 2017 - 2029
  1. Figure 27:  
  2. HONG KONG DATA CENTER MARKET, MASSIVE, VOLUME IN MW, 2017 - 2029
  1. Figure 28:  
  2. HONG KONG DATA CENTER MARKET, MEDIUM, VOLUME IN MW, 2017 - 2029
  1. Figure 29:  
  2. HONG KONG DATA CENTER MARKET, MEGA, VOLUME IN MW, 2017 - 2029
  1. Figure 30:  
  2. HONG KONG DATA CENTER MARKET, SMALL, VOLUME IN MW, 2017 - 2029
  1. Figure 31:  
  2. HONG KONG DATA CENTER MARKET, BY TIER TYPE, VOLUME IN MW, 2017 - 2029
  1. Figure 32:  
  2. HONG KONG DATA CENTER MARKET, SHARE(%), BY TIER TYPE, 2017 - 2023 - 2029
  1. Figure 33:  
  2. HONG KONG DATA CENTER MARKET, TIER 1&2, VOLUME IN MW, 2017 - 2029
  1. Figure 34:  
  2. HONG KONG DATA CENTER MARKET, TIER 3, VOLUME IN MW, 2017 - 2029
  1. Figure 35:  
  2. HONG KONG DATA CENTER MARKET, TIER 4, VOLUME IN MW, 2017 - 2029
  1. Figure 36:  
  2. HONG KONG DATA CENTER MARKET, BY ABSORPTION, VOLUME IN MW, 2017 - 2029
  1. Figure 37:  
  2. HONG KONG DATA CENTER MARKET, SHARE(%), BY ABSORPTION, 2017 - 2023 - 2029
  1. Figure 38:  
  2. HONG KONG DATA CENTER MARKET, NON-UTILIZED, VOLUME IN MW, 2017 - 2029
  1. Figure 39:  
  2. HONG KONG DATA CENTER MARKET, BY COLOCATION TYPE, VOLUME IN MW, 2017 - 2029
  1. Figure 40:  
  2. HONG KONG DATA CENTER MARKET, SHARE(%), BY COLOCATION TYPE, 2017 - 2023 - 2029
  1. Figure 41:  
  2. HONG KONG DATA CENTER MARKET, HYPERSCALE, VOLUME IN MW, 2017 - 2029
  1. Figure 42:  
  2. HONG KONG DATA CENTER MARKET, RETAIL, VOLUME IN MW, 2017 - 2029
  1. Figure 43:  
  2. HONG KONG DATA CENTER MARKET, WHOLESALE, VOLUME IN MW, 2017 - 2029
  1. Figure 44:  
  2. HONG KONG DATA CENTER MARKET, BY END USER, VOLUME IN MW, 2017 - 2029
  1. Figure 45:  
  2. HONG KONG DATA CENTER MARKET, SHARE(%), BY END USER, 2017 - 2023 - 2029
  1. Figure 46:  
  2. HONG KONG DATA CENTER MARKET, BFSI, VOLUME IN MW, 2017 - 2029
  1. Figure 47:  
  2. HONG KONG DATA CENTER MARKET, CLOUD, VOLUME IN MW, 2017 - 2029
  1. Figure 48:  
  2. HONG KONG DATA CENTER MARKET, E-COMMERCE, VOLUME IN MW, 2017 - 2029
  1. Figure 49:  
  2. HONG KONG DATA CENTER MARKET, GOVERNMENT, VOLUME IN MW, 2017 - 2029
  1. Figure 50:  
  2. HONG KONG DATA CENTER MARKET, MANUFACTURING, VOLUME IN MW, 2017 - 2029
  1. Figure 51:  
  2. HONG KONG DATA CENTER MARKET, MEDIA & ENTERTAINMENT, VOLUME IN MW, 2017 - 2029
  1. Figure 52:  
  2. HONG KONG DATA CENTER MARKET, TELECOM, VOLUME IN MW, 2017 - 2029
  1. Figure 53:  
  2. HONG KONG DATA CENTER MARKET, OTHER END USER, VOLUME IN MW, 2017 - 2029
  1. Figure 54:  
  2. HONG KONG DATA CENTER MARKET, BY MAJOR PLAYER IT LOAD CAPACITY, 2022

Hong Kong Data Center Industry Segmentation

Chai Wan, Shatin, Tseun Wan, Tseung Kwan O are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
Hotspot
Chai Wan
Shatin
Tseun Wan
Tseung Kwan O
Rest of Hong Kong
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User

Report scope can be customized per your requirements. Click here.

Market Definition

  • IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
  • ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
  • RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
  • DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
  • TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
  • COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
  • END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.

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Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms

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Hong Kong Data Center Market Research FAQs

The Hong Kong Data Center Market size is expected to reach 843.92 mw in 2023 and grow at a CAGR of 13.25% to reach 1.78 thousand mw by 2029.

In 2023, the Hong Kong Data Center Market size is expected to reach 843.92 mw.

China Mobile International Ltd., Global Switch Holdings Limited, Hostdime, NTT Ltd. and Zenlayer Inc are the major companies operating in the Hong Kong Data Center Market.

In the Hong Kong Data Center Market, the Tier 3 segment accounts for the largest share by tier type.

In 2023, the Tier 4 segment accounts for the fastest growing by tier type in the Hong Kong Data Center Market.

Hong Kong Data Center Industry Report

Statistics for the 2023 Hong Kong Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hong Kong Data Center analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Hong Kong Data Center Market Report Snapshots