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Data Centers in Hong Kong

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Hong Kong – Asia's Premier Interconnection Hub

Hong Kong stands as a critical gateway for businesses targeting mainland China and the broader Asia-Pacific region. Its unmatched carrier density and status as a global financial center make it the top choice for deploying infrastructure where low latency and high uptime are essential for revenue and performance. This market provides a stable, reliable foundation for accessing one of the world's most dynamic economic zones.

Hong Kong: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+A top-tier global hub with extensive subsea cable capacity and carrier density.
Direct Cloud On-RampsOver 5 – as of Sep 2025Alibaba Cloud, AWS, Google Cloud (GCP), IBM Cloud.
Power CostUS$0.13/kWh – as of Dec 2024Mix is predominantly fossil fuels with some nuclear import; renewables are minimal.
Disaster RiskLow – as of Sep 2025Modern infrastructure is built to withstand regional risks like typhoons.
Tax IncentivesNoHong Kong's simple, low-tax system is the primary incentive; no specific data center programs exist.
Sales Tax0% VAT – as of Sep 2025Hong Kong does not have a Value Added Tax or general sales tax.

Network & Connectivity Ecosystem

Hong Kong's connectivity is world-class, built on a foundation of intense competition and significant international investment. The market offers exceptional options for connecting to regional and global networks.

Carrier Density & Carrier Neutrality: With over 65 carriers operating within a compact geography (as of September 2025), Hong Kong provides extensive choice. Most colocation facilities are carrier-neutral, fostering a competitive environment that drives down transit costs.

Direct Cloud On-Ramps: The market features over 5 dedicated cloud on-ramps, enabling direct, private access to 10 distinct cloud regions (as of September 2025). Major providers include Alibaba Cloud, AWS, Google Cloud (GCP), and IBM Cloud.

Internet Exchange Points (IXPs): The Hong Kong Internet Exchange (HKIX) is the primary peering point in the region. It facilitates low-latency traffic exchange between hundreds of local and international networks, which is critical for content delivery and financial services.

Bare Metal: On-demand bare metal servers are widely available from multiple providers. Global suppliers like Hivelocity offer compute resources for workloads requiring dedicated, high-performance hardware.

Power Analysis

Average Cost Of Power: Industrial power is priced at approximately US$0.13/kWh (as of December 2024). While not the cheapest in the region, the price reflects a highly stable and reliable grid, minimizing the business risk associated with power disruptions.

Power Grid Reliability: The power grid is engineered to exceptionally high standards, with redundant sources and robust distribution networks supporting the main data center zones. Facilities are typically served by multiple substations, ensuring high availability for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are located with strategic access to Central, the city's primary financial district. This proximity provides low-latency connectivity for the finance, banking, and insurance industries that dominate the local economy.

Regional Market Reach: Hong Kong is the ideal location for serving Southern China, including the Greater Bay Area, as well as Taiwan and Southeast Asia. Its central location and minimal regulation make it a strategic hub for reaching hundreds of millions of end-users.

Tax Advantage For Data Centers: Hong Kong does not offer specific tax incentives for data center development. The primary financial benefit is the city's simple and low corporate tax regime, which creates a favorable environment for all business operations without complex eligibility rules.

Natural Disaster Risk

Hong Kong has a Low overall risk profile for natural disasters (as of September 2025). While the region experiences certain weather events, modern infrastructure is purpose-built to mitigate their impact.

Key risks include:

  • Typhoons (Tropical Cyclones): The most significant and frequent risk, but data centers and buildings are constructed to stringent codes to withstand high winds and heavy rain.
  • Coastal Flooding: A known risk in low-lying areas during storm surges, but critical facilities are sited and designed to avoid impact.
  • Landslides: Occur during periods of intense rainfall, though risks are localized and well-mapped.
  • Earthquakes: Seismic risk is considered very low.
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