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Data Centers in Hong Kong

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Hong Kong – Premier Gateway to Asia Pacific

Executive Summary

Hong Kong is the primary interconnection hub for businesses requiring low-latency access to mainland China and the wider Asia Pacific region. Its dense ecosystem of networks, submarine cables, and cloud providers makes it a critical location for finance, logistics, and content delivery. Deploying in Hong Kong provides a strategic advantage for any digital business targeting Asian markets, ensuring high-speed performance and exceptional reliability.

Hong Kong: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent submarine cable access and a dense, competitive carrier ecosystem.
Direct Cloud On-RampsOver 6 – as of September 2025Alibaba Cloud, AWS, Azure, Google Cloud (GCP), IBM Cloud.
Power Cost$0.13/kWh – as of December 2024Competitive for a major financial hub; grid is powered by gas, coal, and nuclear.
Disaster RiskModerate – as of September 2025Primary risks include typhoons and associated flooding; low seismic activity.
Tax IncentivesNoLacks specific data center incentives, but overall corporate tax rates are famously low.
Sales Tax0% VAT / Sales Tax – as of September 2025Significant operational cost advantage; no value-added or goods and services tax.

Network & Connectivity Ecosystem

Hong Kong's status as a top-tier global data center market is built on its exceptional network infrastructure. It serves as the region's primary traffic hub, offering unparalleled access to both international and mainland Chinese networks.

Carrier Density & Carrier Neutrality With over 65 network providers operating in the market as of September 2025, Hong Kong offers a rich selection of connectivity options. The market is dominated by carrier-neutral data centers, giving customers complete control to select the best providers for performance and cost without being locked into a single vendor.

Direct Cloud On-Ramps Hong Kong provides over 6 direct cloud on-ramps, enabling high-speed, private connections to 11 different cloud availability regions. Major public clouds with a dedicated presence include Alibaba Cloud, AWS, Azure, Google Cloud (GCP), and IBM Cloud. This direct access is essential for hybrid cloud deployments, improving security and application performance.

Internet Exchange Points (IXPs) The Hong Kong Internet Exchange (HKIX) is one of the largest and most significant peering points in Asia. It allows networks to exchange traffic directly, reducing latency for local and regional users and lowering transit costs.

Bare Metal Bare metal server options are widely available from numerous providers. Global suppliers like Hivelocity and phoenixNAP offer dedicated servers, giving businesses the performance of owned hardware without the capital expense.

Power Analysis

Average Cost Of Power The average industrial power cost in Hong Kong is approximately $0.13/kWh, as of December 2024. While not the cheapest in the region, this price is very competitive for a global financial center and is offset by high grid reliability.

Power Grid Reliability Hong Kong's power grid is exceptionally reliable, serviced by two separate utility companies providing redundancy. Data centers, particularly in key areas like Tseung Kwan O Industrial Estate, are supported by well-engineered, fault-tolerant infrastructure with power from multiple substations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are strategically located to serve Hong Kong's core industries. Facilities in areas like Tseung Kwan O, Kwai Chung, and Shatin offer secure, low-latency connectivity to the Central financial district, the container ports, and other key commercial zones.

Regional Market Reach Hong Kong is the ideal location for serving the Greater Bay Area, an economic zone encompassing major cities like Shenzhen and Guangzhou. Its superior international connectivity also makes it a perfect hub for reaching markets across Southeast Asia, Taiwan, Japan, and Korea.

Tax Advantage For Data Centers While Hong Kong offers no specific tax breaks for data centers, its simple and low corporate tax regime is a major financial benefit. This straightforward system reduces administrative overhead and improves the total cost of ownership for any deployment.

Natural Disaster Risk

Hong Kong has a moderate risk profile for natural disasters, with well-understood and manageable threats. Modern data centers are engineered with specific mitigations for these regional hazards.

The primary environmental risks, as of September 2025, include:

  • Tropical Cyclone (Typhoon): The most significant and frequent natural hazard, bringing high winds and heavy rain during the summer months.
  • Coastal & Riverine Flooding: Associated with typhoon storm surge and periods of intense rainfall.
  • Landslide: Can occur on steep hillsides following heavy rainfall.
  • Extreme Heat: A growing consideration for maintaining cooling efficiency and infrastructure resilience.
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