Data Centers in Yuen Long District
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Yuen Long District – Strategic Gateway to the Greater Bay Area
Yuen Long District provides a compelling alternative to Hong Kong's traditionally dense data center clusters. For businesses requiring scalable infrastructure with excellent connectivity to mainland China and global markets, this location offers a strategic balance of cost-efficiency and robust performance. Its position is ideal for enterprises focused on logistics, manufacturing, and reaching customers across the Pearl River Delta.
Yuen Long District: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional and international links, though not as dense as central Hong Kong hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is established via private links to major interconnection facilities in central Hong Kong. |
| Power Cost | US$0.13/kWh – as of Dec 2024 | Primarily natural gas and coal-fired, with imported nuclear contributing to the grid. |
| Disaster Risk | Low to Moderate – as of Sep 2025 | Primary risks include typhoons and associated flooding, typical for the region. |
| Tax Incentives | No | Hong Kong's simple, low-tax system is the main draw, not specific data center incentives. |
| Sales Tax | 0% VAT – as of September 2025 | Hong Kong does not levy a Value Added Tax (VAT) or sales tax. |
Network & Connectivity Ecosystem
Yuen Long's connectivity is defined by its strategic access to Hong Kong's world-class network infrastructure. While not a primary interconnection hub itself, it leverages its proximity to the main carrier hotels and exchanges.
Carrier Density & Carrier Neutrality: While local facilities offer access to a focused set of carriers, comprehensive connectivity is achieved by linking to central Hong Kong, where hundreds of providers operate. As of September 2025, the broader Hong Kong market offers one of the most diverse ecosystems in Asia.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Yuen Long District. Businesses establish secure, low-latency connections to providers like AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud, and Oracle Cloud through private network extensions to the major interconnection hubs in areas like Tseung Kwan O and Sha Tin.
Internet Exchange Points (IXPs): The primary exchange point for the region is the Hong Kong Internet eXchange (HKIX). Peering at HKIX is essential for optimizing traffic flow within Hong Kong and across Asia, and it is readily accessible from Yuen Long facilities via dedicated circuits.
Bare Metal: Bare metal server options are available, enabling businesses to deploy dedicated compute resources. Providers such as Hivelocity offer solutions that can be provisioned in data centers serving the Hong Kong market.
Power Analysis
Hong Kong's power infrastructure is known for its exceptional reliability, and the grid serving Yuen Long is no exception.
Average Cost Of Power: Industrial power is priced at approximately US$0.13/kWh, as of December 2024. This rate is competitive for a major global financial center and allows for predictable operational expenditure planning for compute-heavy deployments. The power mix is dominated by natural gas and coal, with a significant portion from imported nuclear energy.
Power Grid Reliability: The electrical grid is engineered for high availability, with redundant systems and multiple substation feeds common for commercial and industrial zones. This robust infrastructure directly supports the high uptime requirements of modern data centers.
Market Access, Business & Tax Climate
Yuen Long District is strategically positioned within Hong Kong and the wider Greater Bay Area, offering significant logistical and financial advantages.
Proximity To Key Business Districts: The district provides excellent access to major logistics and industrial hubs near the border with mainland China. This is particularly valuable for companies in trade, manufacturing, and cross-border e-commerce that require infrastructure close to their physical operations.
Regional Market Reach: From Yuen Long, businesses can effectively serve the entire Hong Kong population and tap into the massive consumer and business markets of the Pearl River Delta, including Shenzhen and Guangzhou.
Tax Advantage For Data Centers: Hong Kong's primary tax advantage is its simple and low-rate corporate tax system, not specific data center incentives. This straightforward tax regime, free of sales tax or VAT, creates a highly favorable environment for both local and international companies to operate.
Natural Disaster Risk
Hong Kong has a low to moderate risk profile for natural disasters, with well-developed mitigation strategies. Infrastructure in the region, including data centers, is built to high standards to withstand prevalent environmental threats.
As of September 2025, the key risks for the area include:
- Typhoon: The most significant and frequent threat, bringing high winds and heavy rainfall.
- Extreme Rainfall / Flooding: Intense rain during typhoon season can lead to localized flooding.
- Landslide: Hilly terrain in parts of Hong Kong creates some risk during periods of heavy rain.
- Earthquake: While risk is low, the region can experience minor tremors from seismic activity in the South China Sea.
