Data Centers in Yuen Long District

Yuen Long District – Strategic Access to the Greater Bay Area

Executive Summary

This market serves enterprises requiring a strategic link between the Hong Kong financial core and Greater Bay Area industrial hubs. By positioning infrastructure here, organizations manage cross-border data flows and regional edge services without the high costs of the central business district.

Yuen Long District: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 5. As of September 2025, the district features a growing cluster of approximately 5–10 carriers. While the provider count is lower than in the Kowloon or Island districts, the available fiber paths offer resilient connectivity to the major subsea cable landing stations across the territory.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of September 2025. There are no direct native on-ramps in this specific district. Low-latency private waves and PNI options connect facilities to major cloud hubs in Tsuen Wan and Kwai Chung for access to global providers.

Internet Exchange Points (IXPs): Most peering occurs through the Hong Kong Internet Exchange (HKIX) located in the city center. Local facilities utilize high-capacity backhaul to reach this regional peering hub as of September 2025.

Bare Metal: High-performance dedicated hardware is available through global providers such as Leaseweb and Hivelocity. These options allow for rapid scaling and heavy compute workloads without the capital expenditure of traditional colocation as of September 2025.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at US$0.13/kWh, as of December 2024. This pricing is competitive for the region and provides a predictable cost structure for high-density deployments. The power mix relies on natural gas and coal, supplemented by imported nuclear energy, providing a stable supply for industrial users.

Power Grid Reliability: The grid in this district is well-engineered and specifically built to support the expanding Northern Metropolis development. Redundant paths and multi-substation support ensure that mission-critical infrastructure maintains high availability as of September 2025.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in this district are strategically located near the Shenzhen border and the Lok Ma Chau Loop. This proximity is vital for technology and logistics firms that require low-latency communication with Mainland China as of September 2025.

Regional Market Reach: Facilities here effectively serve the growing population of the Northern New Territories and act as a digital gateway to the wider Pearl River Delta, reaching millions of users with minimal latency.

Tax Advantage For Data Centers: The primary financial benefit is the absence of VAT or goods and services tax, which simplifies procurement and reduces the total cost of ownership. This zero-tax environment on equipment imports provides a significant advantage for scaling hardware footprints quickly as of September 2025.

Natural Disaster Risk

Risk Profile: Low (15.0/100) As of September 2025, the district maintains a low risk profile for natural disasters. Most hazards are seasonal and manageable through standard infrastructure engineering.

• Typhoon: Low to Moderate.
• Strong Wind: Moderate (as of September 2025).
• Riverine Flood: Low.
• Earthquake: Low.

Other natural hazards are considered minor or not material to operational stability in this area. Standard Hong Kong building codes ensure that facilities are prepared for regional weather patterns.