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Data Centers in Hong Kong

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Explore Markets in Hong Kong

Hong Kong – Asia's Premier Connectivity Hub

Executive Summary

Hong Kong is the primary gateway for businesses requiring low-latency access to mainland China and the wider Asia-Pacific region. Its dense ecosystem of 77 data centers, combined with world-class connectivity, makes it an essential hub for any digital strategy focused on finance, logistics, or regional service delivery. Deploying here ensures high-speed, reliable access to one of the world's most dynamic economic zones.

Hong Kong: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAA top-tier global hub with extensive subsea cable and terrestrial networks.
Direct Cloud On-RampsOver 6 – as of September 2025Alibaba Cloud, AWS, Google Cloud (GCP), IBM Cloud.
Power CostUS$0.13/kWh – as of December 2024Competitive for a major financial hub; stable supply.
Disaster RiskLow – as of September 2025Infrastructure is built to withstand regional weather events like typhoons.
Tax IncentivesNo – as of September 2025Hong Kong's simple, low-tax system is the primary financial advantage.
Sales Tax0% VAT – as of September 2025No Value Added Tax or Goods and Services Tax.

Network & Connectivity Ecosystem

Hong Kong's reputation as a global connectivity leader is well-earned. The market is defined by its exceptional carrier density, direct access to major cloud providers, and efficient traffic exchange, all supported by a regulatory environment that encourages competition and investment.

Carrier Density & Carrier Neutrality: With over 65 network providers active in the market as of September 2025, Hong Kong offers a massive selection of local and international transit, transport, and IP services. The prevalence of carrier-neutral facilities ensures competitive pricing and diverse routing options.

Direct Cloud On-Ramps: The market features 6 dedicated cloud on-ramps, enabling direct, private connections to 11 cloud regions. Providers with a physical presence include Alibaba Cloud, AWS, Google Cloud (GCP), and IBM Cloud, allowing for secure, high-performance hybrid cloud architectures.

Internet Exchange Points (IXPs): The Hong Kong Internet Exchange (HKIX) is the dominant peering point, handling the vast majority of intra-regional traffic. Its presence reduces latency and lowers transit costs for connected networks by keeping local traffic local.

Bare Metal: Bare metal server options are widely available for workloads requiring dedicated, high-performance compute. Providers like Hivelocity and phoenixNAP offer solutions in the Hong Kong market.

Power Analysis

Hong Kong’s power infrastructure is both reliable and reasonably priced for a Tier 1 global market.

Average Cost Of Power: Industrial power is priced at approximately US$0.13/kWh as of December 2024. This competitive rate helps manage the total cost of ownership for high-density deployments. The energy mix is primarily natural gas and coal, with nuclear power imported from mainland China.

Power Grid Reliability: The power grid is engineered to exceptionally high standards, with redundant sources and substations serving the primary data center zones. This reliability is critical for financial institutions and enterprises that cannot tolerate downtime.

Market Access, Business & Tax Climate

Hong Kong's business-friendly environment extends directly to its data center market, offering strategic advantages for regional and global enterprises.

Proximity To Key Business Districts: Data centers are located with strategic access to key commercial zones like Central, the city's financial heart. This proximity is vital for latency-sensitive applications used in banking, high-frequency trading, and logistics.

Regional Market Reach: From Hong Kong, organizations can effectively serve hundreds of millions of users across Southern China, Taiwan, and Southeast Asia. Its location and connectivity minimize latency to these fast-growing digital economies.

Tax Advantage For Data Centers: While Hong Kong offers no specific tax incentives for data centers, its overall tax system is a major benefit. The city has a simple, low-rate corporate tax structure and no sales tax (VAT), which significantly reduces the operating cost and complexity for international businesses.

Natural Disaster Risk

Based on available data, Hong Kong has a low overall risk profile for natural disasters as of September 2025. The infrastructure is designed with resilience in mind to mitigate the impact of regional weather patterns.

Key environmental risks include:

  • Typhoon / Hurricane: The most significant and frequent risk, managed through stringent building codes.
  • Landslide: A moderate risk, particularly during periods of heavy rainfall.
  • Wildfire: A low but present risk in more rural areas.
  • River Flood: Localized flooding can occur during extreme weather events.
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