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Data Centers in Hong Kong

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Explore Markets in Hong Kong

Hong Kong – Asia's Premier Interconnection Hub

Executive Summary

Hong Kong is a critical hub for any business targeting mainland China and the broader Asia-Pacific region. Its world-class density of carriers, cloud on-ramps, and financial exchanges offers unparalleled low-latency connectivity, directly supporting high-stakes applications from global banking to content delivery.

Hong Kong: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent carrier diversity and a primary gateway to mainland China and APAC.
Direct Cloud On-RampsOver 6 – as of September 2025Alibaba Cloud, AWS, Azure, Google Cloud (GCP), IBM Cloud.
Power CostUS$0.13/kWh – as of December 2024Stable but premium pricing reflects the market's high-demand, high-density environment.
Disaster RiskModerate – as of September 2025Primary risks include typhoons (tropical cyclones) and associated storm surge.
Tax IncentivesNo – as of September 2025Hong Kong follows a straightforward, low-tax regime with no specific data center incentives.
Sales Tax0% (No VAT or GST) – as of September 2025Hong Kong does not levy a Value Added Tax or Goods and Services Tax.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Hong Kong features over 65 unique network carriers, as of September 2025. The market is dominated by large, carrier-neutral facilities that provide extensive choice for interconnection.

Direct Cloud On-Ramps: With 6 dedicated cloud on-ramps connecting to 11 distinct cloud regions, as of September 2025, Hong Kong offers excellent private connectivity. Direct access is available to major providers including Alibaba Cloud, AWS, Azure, Google Cloud (GCP), and IBM Cloud.

Internet Exchange Points (IXPs): The Hong Kong Internet Exchange (HKIX) is one of the largest and most critical peering points in Asia. It facilitates efficient traffic exchange and reduces latency for regional and international routes.

Bare Metal: Bare metal server solutions are readily available from a variety of providers. Options from global suppliers like Hivelocity and phoenixNAP are present, offering dedicated compute for performance-sensitive workloads.

Power Analysis

Average Cost Of Power: Industrial power is priced at approximately US$0.13/kWh, as of December 2024. This rate is higher than in some other regional markets, making power a significant factor in total cost of ownership calculations for high-density deployments.

Power Grid Reliability: The power grid in Hong Kong is exceptionally reliable and stable, engineered with significant redundancy. Major data center zones are supported by dual power feeds from separate substations, ensuring high levels of 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, purpose-built locations with excellent fiber connectivity back to the central business district. This proximity is vital for the financial services industry, which requires ultra-low latency.

Regional Market Reach: Strategically located, Hong Kong serves as the premier low-latency gateway to mainland China's massive consumer and business markets. It also provides an ideal base for serving users across Southeast Asia, Japan, and Korea.

Tax Advantage For Data Centers: While no specific tax incentives exist for data center operators, the primary advantage is Hong Kong's simple and low-tax regime. The absence of a VAT or GST simplifies procurement of hardware and services, reducing overall project costs.

Natural Disaster Risk

Hong Kong has a Moderate natural disaster risk profile, as of September 2025. The primary threat comes from seasonal typhoons, which can bring high winds, heavy rainfall, and potential storm surge. Data center construction and operational planning account for these predictable weather patterns.

Key environmental risks include:

  • Typhoon (Tropical Cyclone): The most frequent and significant hazard, occurring typically between May and November.
  • Coastal & Riverine Flood: Intense rainfall during typhoons can lead to localized flooding and landslides.
  • Extreme Heat: Periods of high heat and humidity are common during the summer months.
  • Earthquake: Seismic risk is considered low, with the territory located away from major fault lines.
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