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Data Centers in Hong Kong

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Hong Kong – Asia’s Premier Connectivity Hub

Hong Kong is the definitive digital gateway for businesses targeting mainland China and the wider Asia-Pacific region. Its unparalleled network density and concentration of financial and logistics companies make it a critical location for deploying infrastructure where low latency and high uptime are essential for revenue and market access.

Hong Kong: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+A top-tier global hub with extensive subsea cable capacity and carrier diversity.
Direct Cloud On-RampsOver 5 – as of September 2025Alibaba Cloud, AWS, Azure, Google Cloud (GCP), IBM Cloud.
Power Cost$0.13/kWh – as of December 2024Primarily natural gas and coal-fired generation; rates are competitive for a major metro.
Disaster RiskLowWhile typhoons are a seasonal factor, infrastructure is built to high resiliency standards.
Tax IncentivesNoNo specific incentives are offered for data center development or operation.
Sales Tax0% VAT – as of September 2025Hong Kong does not have a Value Added Tax or general sales tax.

Network & Connectivity Ecosystem

Hong Kong’s digital infrastructure is one of the most developed and connected in the world. As a primary interconnection point for Asia, it offers exceptional performance for any application sensitive to latency.

Carrier Density & Carrier Neutrality: With over 65 carriers operating within a dense ecosystem of 73 data centers, as of September 2025, the market provides extensive choice. Carrier-neutral facilities are common, fostering a competitive environment for network services.

Direct Cloud On-Ramps: The market has over 5 dedicated cloud on-ramps, enabling direct, private access to 10 cloud regions. Available providers include Alibaba Cloud, AWS, Azure, Google Cloud (GCP), and IBM Cloud.

Internet Exchange Points (IXPs): The Hong Kong Internet Exchange (HKIX) is the primary peering point in the region. Its presence allows for efficient, low-latency traffic exchange between networks, reducing costs and improving performance.

Bare Metal: Bare metal server options are widely available from multiple providers. Global suppliers like Hivelocity and OVHcloud offer dedicated server infrastructure for performance-intensive workloads.

Power Analysis

Average Cost Of Power: Industrial power is priced at approximately $0.13/kWh, as of December 2024. This stable and predictable pricing is crucial for managing the operational expenses of high-density compute deployments.

Power Grid Reliability: The power grid is highly reliable and well-engineered, particularly in the districts where data centers are concentrated. Facilities benefit from redundant power feeds and multi-substation support, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Hong Kong are strategically located to serve the world's leading financial, logistics, and trading companies in districts like Central, Kwun Tong, and Tsuen Wan. This proximity minimizes latency for critical financial transactions and data processing.

Regional Market Reach: Hong Kong serves as a secure, neutral location for accessing the massive consumer and business markets of mainland China and the rest of Southeast Asia. Its unique political and economic position provides a stable base for regional operations.

Tax Advantage For Data Centers: While Hong Kong offers no specific tax incentives for data centers, its overall tax system is a significant advantage. The simple and low corporate tax rate provides a financially efficient environment for businesses to operate and scale their digital infrastructure.

Natural Disaster Risk

Hong Kong maintains a Low overall risk profile for natural disasters, as of September 2025. Although no specific risk data was provided, the primary environmental consideration for data center operators is the annual typhoon season, which can bring strong winds and heavy rainfall. Modern data centers in the region are purpose-built to withstand these weather events, incorporating resilient designs and flood mitigation measures. Other seismic and geological risks are considered minimal.

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