Data Centers in Hong Kong
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Hong Kong – Asia's Premier Connectivity Hub
Executive Summary
Hong Kong is a critical data center market for any business targeting the Asia-Pacific region, especially mainland China. Its strategic value lies in its unique combination of a free and open internet, exceptional network density, and its role as a global financial powerhouse. Deploying infrastructure here provides low-latency, high-performance access to one of the world's largest economies, safeguarding revenue and user experience for multinational corporations.
Hong Kong: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity but fewer direct intercontinental routes than top-tier hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Major cloud regions are present; access is via private network interconnection within facilities. |
| Power Cost | $0.08/kWh – as of Q2 2025 | Competitive pricing for a major global financial center. |
| Disaster Risk | Low (3.0/10) – as of September 2025 | Primarily exposed to tropical cyclones and coastal flooding, managed with resilient infrastructure. |
| Tax Incentives | No | No specific data center tax incentives are currently offered by the government. |
| Sales Tax | 13% VAT (standard rate) – as of September 2025 | Standard rate applies; reduced rates of 9% or 6% for specific goods. |
Network & Connectivity Ecosystem
Hong Kong’s reputation as a world-class interconnection point is well-earned. The market provides a unique blend of dense local connectivity and unparalleled access to mainland China, all within a legally distinct and stable operating environment.
Carrier Density & Carrier Neutrality: The market features exceptional carrier density, with over 100 unique network providers available as of September 2025. A healthy ecosystem of carrier-neutral data centers ensures competitive pricing and diverse routing options for building resilient network architectures.
Direct Cloud On-Ramps: While there are no dedicated public cloud on-ramps listed as of September 2025, Hong Kong is a major cloud availability region for all hyperscalers. Direct, low-latency connections to cloud providers are standard offerings within most colocation facilities, achieved through private network interconnects.
Internet Exchange Points (IXPs): The Hong Kong Internet Exchange (HKIX) is the primary peering point in the region. It is one of the largest IXPs in Asia, facilitating efficient traffic exchange and reducing latency for local and regional users.
Bare Metal: Bare metal compute is readily available from multiple providers in Hong Kong. Options include global suppliers like Hivelocity and phoenixNAP, giving businesses flexible, high-performance compute without capital expenditure.
Power Analysis
Average Cost Of Power: Industrial power is priced competitively at approximately $0.08/kWh as of Q2 2025. This predictable and reasonable utility cost helps organizations manage operational expenses, especially for high-density compute and storage deployments.
Power Grid Reliability: The power grid is extremely reliable, with a stable supply engineered for the demands of a global financial center. Data centers, particularly in the Tseung Kwan O Industrial Estate, are supported by redundant power feeds from multiple utility substations, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers are strategically located to serve Hong Kong's central financial district, providing low-latency connectivity essential for financial services, trading platforms, and enterprise customers. The primary data center cluster is located in Tseung Kwan O.
Regional Market Reach: Hong Kong serves as the premier gateway for international firms to reach consumers and business partners in mainland China. Its location and infrastructure also make it an ideal hub for serving the broader Southeast Asian market.
Tax Advantage For Data Centers: There are no specific tax incentives for data center operators or tenants. The key financial benefit of operating in Hong Kong is its simple and low-rate corporate tax system, which is broadly advantageous for all businesses.
Natural Disaster Risk
Hong Kong has a Low overall risk profile for natural disasters, with an INFORM Risk score of 3.0 out of 10 as of September 2025. While the overall risk is low, modern data centers are engineered to mitigate the region's specific environmental threats.
Key risks to consider include:
- River & Coastal Flooding: High risk score (9.3/10 and 9.0/10 respectively), a primary concern for any coastal city.
- Tsunami: High risk score (9.0/10), though historically rare.
- Tropical Cyclone: High risk score (7.8/10), as the region is prone to typhoons.
- Earthquake: Moderate risk score (6.7/10).
