Data Centers in Hong Kong

Hong Kong – The Premier Digital Gateway to Mainland China

Executive Summary

Hong Kong remains the indispensable hub for enterprises requiring high-performance access to mainland China and the broader Asia-Pacific region. This market is built for organizations where millisecond advantages translate directly into revenue growth and financial stability. By providing a bridge between global capital and the Chinese consumer base, these facilities secure a critical position in any resilient digital strategy.

Hong Kong: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The local market maintains a diverse ecosystem with over 10 carriers present across major facilities as of December 2025. This environment supports neutral interconnection, allowing enterprises to manage diverse routing and reduce reliance on single providers for global traffic.

Direct Cloud On-Ramps: There are 0 direct cloud on-ramps within these specific facilities as of December 2025. Connectivity to platforms like AWS, Google Cloud (GCP), and Microsoft Azure is typically managed via private network interconnects or high-capacity wavelengths reaching regional hubs in nearby markets.

Internet Exchange Points (IXPs): The Hong Kong Internet eXchange (HKIX) serves as the primary peering point, significantly lowering latency and transit expenses by keeping local traffic within the territory as of December 2025.

Bare Metal: High-performance bare metal services are available through providers such as Latitude.sh and phoenixNAP, supporting workloads that require dedicated physical hardware and high throughput for specific performance requirements.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at US$0.08/kWh as of June 2025. This rate is competitive for a Tier 1 market, though the energy mix remains focused on fossil fuels, with coal accounting for approximately 62 percent of production. This cost structure provides a predictable baseline for high-density deployments.

Power Grid Reliability: Electrical infrastructure serving major data center corridors is well-engineered and utilizes redundant configurations as of December 2025. Local grids feature multi-substation support to maintain high uptime for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Facilities are strategically located near districts like Kwun Tong and Cyberport. This provides immediate proximity to the financial services, media, and technology sectors that drive the local economy and require low-latency data processing.

Regional Market Reach: Hong Kong serves as the primary jumping-off point for the Greater Bay Area. This position offers a direct link between international markets and a massive consumer base in mainland China, making it a logical choice for regional expansion.

Tax Advantage For Data Centers: The market operates under a straightforward tax structure without specialized data center subsidies as of December 2025. This regulatory clarity allows for predictable long-term financial planning and simplified compliance for international firms.

Natural Disaster Risk

The overall risk profile for Hong Kong is categorized as Low (3.0/10) as of December 2025. While the aggregate risk class is low, the geography requires specific engineering focus on seasonal and coastal hazards.

• River Flood (9.3/10): Significant risk requiring elevated facility design and advanced drainage systems as of December 2025.
• Tsunami (9.0/10): High coastal risk managed through regional warning systems and careful site selection as of December 2025.
• Coastal Flood (9.0/10): Material risk for low-lying areas, typically mitigated by flood barriers and water management as of December 2025.
• Tropical Cyclone (7.8/10): Frequent seasonal events requiring wind-rated structures and hardened facility exteriors as of December 2025.
• Earthquake (6.7/10): Moderate seismic risk addressed through strict building codes and structural reinforcement as of December 2025.