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Data Centers in Tsuen Wan District

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Tsuen Wan District – Strategic Hub for Asian Markets

Executive Summary

Tsuen Wan District is a primary data center market for businesses requiring high-performance connectivity into mainland China and across the Asia-Pacific region. Its dense ecosystem of networks and cloud providers is critical for financial services, content delivery networks, and global enterprises. This strategic location directly translates to reduced latency and improved application performance, securing a competitive advantage in the region.

Tsuen Wan District: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBExcellent regional connectivity within a top-tier global hub.
Direct Cloud On-Ramps0 – as of September 2025Access is available via metro cross-connects to the rich Hong Kong ecosystem.
Power Cost$0.13/kWh, as of December 2024Power mix relies on natural gas, coal, and imported nuclear energy.
Disaster RiskLowPrimary risks are typhoons, which modern infrastructure is built to withstand.
Tax IncentivesNoHong Kong does not offer specific tax incentives for data center operations.
Sales Tax0% VAT, as of September 2025Hong Kong is a free port and does not levy a VAT or sales tax.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The broader Hong Kong market features over 100 carriers, as of September 2025. Facilities in Tsuen Wan District offer access to this dense and competitive ecosystem, ensuring resilient, low-latency network solutions.

Direct Cloud On-Ramps: While dedicated on-ramps may not terminate in every facility, direct access to major cloud providers including AWS, Google Cloud (GCP), Microsoft Azure, and Alibaba Cloud is available via private network interconnects across the Hong Kong metro area.

Internet Exchange Points (IXPs): The primary exchange is the Hong Kong Internet eXchange (HKIX), which facilitates cost-effective traffic exchange and improves network performance for a vast number of local and international peers.

Bare Metal: Bare metal server solutions are readily available from multiple providers. Global vendors like Hivelocity and phoenixNAP offer compute capacity in the Hong Kong market, enabling performance-critical applications.

Power Analysis

Average Cost Of Power: The average cost for industrial power is approximately $0.13/kWh, as of December 2024. This competitive power pricing, combined with high grid reliability, makes it an attractive market for compute-intensive deployments.

Power Grid Reliability: The power grid serving the Tsuen Wan area is well-engineered and highly reliable. Data centers in the district are typically supported by redundant power feeds from multiple substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Tsuen Wan District are strategically positioned with reliable, low-latency connectivity to Hong Kong's core financial and commercial hubs in Central and Kowloon. This proximity is essential for financial trading, logistics, and enterprise operations.

Regional Market Reach: The district serves as a digital gateway to the Pearl River Delta (Greater Bay Area) and mainland China. It is also a pivotal hub for reaching markets across East and Southeast Asia with minimal delay.

Tax Advantage For Data Centers: Hong Kong's primary tax advantage is its simple, low-rate system. The absence of VAT, sales tax, and capital gains tax creates a highly favorable financial environment for businesses investing in digital infrastructure.

Natural Disaster Risk

The overall natural disaster risk for data centers in Tsuen Wan District is considered low, as of September 2025. Facilities are engineered to modern standards to mitigate the region's primary environmental threats.

Key regional risks include:

  • Typhoon (Tropical Cyclone)
  • Storm Surge
  • Strong Wind
  • Coastal Flooding
  • Rainfall Flooding
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