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Data Centers in Hong Kong

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Hong Kong – Asia's Premier Interconnection Hub

Executive Summary

Hong Kong is a primary interconnection point for any business targeting mainland China and the broader Asia-Pacific region. Its exceptional network density and status as a global financial center make it the top choice for enterprises where low-latency access to Asian markets is critical for revenue and application performance. This market provides a unique combination of a free and open internet with direct, high-capacity routes into China.

Hong Kong: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Exceptional carrier density and a landing point for numerous subsea cables.
Direct Cloud On-RampsOver 5 – as of September 2025Alibaba Cloud, AWS, Azure, Google Cloud (GCP), and IBM Cloud are available.
Power Cost$0.13/kWh – as of December 2024Based on industrial rates; mix is primarily natural gas and coal.
Disaster RiskLow to Moderate – as of September 2025Major risks include typhoons and strong winds; seismic activity is a consideration.
Tax IncentivesNoNo specific tax incentives are offered for data center operations.
Sales Tax0% VAT – as of September 2025Hong Kong does not levy a Value-Added or Goods and Services Tax.

Network & Connectivity Ecosystem

Hong Kong’s infrastructure is world-class, built to serve the demanding needs of global finance and logistics. Its carrier-neutral facilities are among the most connected in the world.

Carrier Density & Carrier Neutrality With over 65 carriers operating within a dense footprint of 73 data centers (as of September 2025), the market offers extensive choice. This competition ensures competitive pricing and diverse routing options for high uptime and performance.

Direct Cloud On-Ramps Hong Kong provides direct, private access to major cloud platforms, enabling hybrid architectures with minimal latency. Over 5 dedicated on-ramps connect to 10 cloud regions (as of September 2025), including:

  • Alibaba Cloud
  • Amazon Web Services (AWS)
  • Google Cloud (GCP)
  • IBM Cloud
  • Microsoft Azure

Internet Exchange Points (IXPs) The Hong Kong Internet Exchange (HKIX) is the primary IXP, facilitating massive traffic exchange between networks. Peering at HKIX keeps local traffic within the region, dramatically improving performance and reducing costs for content delivery and services aimed at the local population.

Bare Metal On-demand bare metal servers are readily available from multiple providers. This allows businesses to deploy dedicated compute resources quickly, supporting performance-sensitive workloads that require direct hardware access. Providers like Hivelocity and phoenixNAP offer services in the region.

Power Analysis

Average Cost Of Power Industrial power costs average around $0.13/kWh (as of December 2024). This rate is competitive for a top-tier global market, helping to control operational expenditures for high-density deployments. The grid is fueled by a mix of natural gas, coal, and imported nuclear power.

Power Grid Reliability The power grid is highly reliable and engineered for the demands of a global financial center. Data centers in primary corridors are supported by redundant power feeds and multiple substations, ensuring excellent uptime for critical infrastructure.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are strategically located to serve Hong Kong's central business district. This proximity provides the ultra-low latency required by the financial services industry for high-frequency trading and other critical applications.

Regional Market Reach Hong Kong is the premier gateway to mainland China, particularly the Greater Bay Area, with over 86 million people. It also serves as a central hub for reaching users across Southeast Asia, Taiwan, Japan, and South Korea with excellent performance.

Tax Advantage For Data Centers Hong Kong's simple and low-rate tax system is a major advantage. While there are no direct incentives for data centers, the territory's business-friendly environment and absence of sales tax simplify operations and reduce the overall cost of doing business.

Natural Disaster Risk

A formal risk assessment score is not available for Hong Kong. However, based on its geographic location, the market carries a Low to Moderate risk profile (as of September 2025).

Key environmental risks are managed through resilient infrastructure design and established operational procedures. The primary hazards for consideration include:

  • Typhoons (Tropical Cyclones)
  • Strong Wind
  • Coastal Flooding
  • Seismic Activity
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