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Data Centers in Hong Kong

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Hong Kong – Premier Interconnection Hub for Asia

Executive Summary

Hong Kong is the premier interconnection point for businesses targeting mainland China and the wider Asia-Pacific region. Its exceptional carrier density and direct cloud access provide the low-latency infrastructure required for high-stakes industries like finance, media, and global logistics, ensuring maximum performance and reach.

Hong Kong: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExceptional carrier density and low-latency routes to China and across Asia.
Direct Cloud On-RampsOver 6 – as of December 2024Alibaba, AWS, Azure, Google (GCP), IBM.
Power Cost$0.13/kWh (as of December 2024)Grid is reliable; pricing is competitive for a major financial hub.
Disaster RiskModerate – as of September 2025Primary risks include typhoons and associated storm surge; seismic risk is low.
Tax IncentivesNoNo specific tax incentives for data center development or operation are offered.
Sales Tax0% VAT / Sales Tax (as of September 2025)Hong Kong is a free port with no value-added or sales tax.

Network & Connectivity Ecosystem

Hong Kong is one of the most connected cities in the world, serving as a critical gateway between mainland China and the global internet. Its liberalized telecom market fosters a competitive and diverse environment for colocation and network services.

Carrier Density & Carrier Neutrality Hong Kong supports a dense ecosystem with over 65 network carriers available (as of December 2024). The market is dominated by carrier-neutral data centers, providing customers with extensive choice and commercial leverage.

Direct Cloud On-Ramps With 6 dedicated on-ramps and access to 11 cloud regions (as of December 2024), Hong Kong offers direct, low-latency connections to major public clouds. Available providers include Alibaba Cloud, AWS, Google Cloud (GCP), IBM Cloud, and Microsoft Azure.

Internet Exchange Points (IXPs) The primary public peering point is the Hong Kong Internet Exchange (HKIX), which facilitates efficient traffic exchange between local and international networks, lowering transit costs and improving performance.

Bare Metal Bare metal server solutions are widely available from multiple providers, including global operators like Hivelocity and phoenixNAP, for workloads demanding dedicated physical resources.

Power Analysis

Average Cost Of Power Industrial power costs average around $0.13/kWh (as of December 2024). This price is competitive for a premium Asian market, helping to manage operational expenditures for high-density deployments.

Power Grid Reliability The power grid in Hong Kong is highly reliable, sourced from a mix of natural gas and coal, with supplemental nuclear power imported. Major data center zones benefit from redundant grid connections and multi-substation support, ensuring high uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are concentrated in areas like Tseung Kwan O and Kwai Chung, providing secure and scalable infrastructure with manageable access to the Central business district. This proximity is vital for financial services firms that depend on low-latency connectivity.

Regional Market Reach Strategically located, Hong Kong serves as the primary low-latency gateway to mainland China, particularly the Greater Bay Area, and acts as a connectivity hub for all of North and Southeast Asia.

Tax Advantage For Data Centers While there are no specific tax incentives for data centers, Hong Kong's simple and low corporate tax system is a significant advantage. The absence of VAT or sales tax on equipment purchases directly reduces capital investment costs.

Natural Disaster Risk

Hong Kong carries a Moderate natural disaster risk profile (as of September 2025). The primary environmental threat comes from typhoons during the summer months, which can bring strong winds and storm surge. Data center site selection and construction standards account for these risks. Seismic activity and wildfire risk are considered low for the region.

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