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 strategic colocation alternative to the more congested central Hong Kong data center markets. It is an excellent choice for enterprises requiring scalable infrastructure with robust connectivity to mainland China and access to the dense Hong Kong ecosystem. This location balances cost-effectiveness with proximity, delivering low-latency performance for logistics, manufacturing, and regional service delivery.
Yuen Long District: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with diverse fiber routes into mainland China and globally. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is available via the primary Hong Kong interconnect hubs. |
| Power Cost | US$0.13/kWh, as of December 2024 | Competitively priced for a major global financial and technology hub. |
| Disaster Risk | Low | The region has a low overall risk profile for natural disasters. |
| Tax Incentives | No | Hong Kong's simple, low-tax system provides benefits without specific data center incentives. |
| Sales Tax | 0% VAT, as of September 2025 | Hong Kong does not levy a Value Added Tax or sales tax. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The Yuen Long area benefits from Hong Kong's rich connectivity, with access to over 100 carriers through facilities in the broader region as of September 2025. Carrier-neutral data centers provide diverse options for local access, backhaul to central Hong Kong, and cross-border connectivity.
Direct Cloud On-Ramps: While direct on-ramps are not located within Yuen Long itself, all major cloud providers, including AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud, Oracle Cloud, and IBM Cloud, are accessible via dedicated connections to the primary interconnection hubs in Hong Kong. Private network extensions offer secure, high-performance paths to these cloud regions.
Internet Exchange Points (IXPs): The primary exchange is the Hong Kong Internet eXchange (HKIX), one of the largest in the Asia-Pacific region. Peering at HKIX provides extremely low-latency routes to nearly all of Hong Kong's internet service providers, improving performance for digital services.
Bare Metal: Bare metal server options are readily available, providing dedicated, high-performance computing resources. Providers like Hivelocity and Latitude.sh offer solutions that can be deployed within the broader Hong Kong market for workloads requiring direct hardware control.
Power Analysis
Average Cost Of Power: Industrial power is priced at approximately US$0.13/kWh, as of December 2024. This rate is competitive for a top-tier global market and supports predictable operational costs for high-density deployments. The power mix is predominantly natural gas and coal, with imported nuclear energy contributing to grid stability.
Power Grid Reliability: Hong Kong's power grid is engineered to an exceptional standard of reliability, with multiple redundancies and substation support. Data centers in Yuen Long benefit from this stable infrastructure, which is essential for maintaining uptime for mission-critical applications.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Yuen Long's data centers are strategically located near major logistics and industrial parks, as well as the border crossing with Shenzhen. This proximity is ideal for businesses in trade, logistics, and manufacturing that require fast digital access to operations in the Pearl River Delta.
Regional Market Reach: The district serves as an effective digital gateway to the Guangdong-Hong Kong-Macao Greater Bay Area, a massive economic region with over 86 million people. Colocation here provides a low-latency springboard for serving southern China while remaining within Hong Kong's distinct legal and network environment.
Tax Advantage For Data Centers: Hong Kong’s straightforward tax system is a primary advantage. With no VAT, no capital gains tax, and a low corporate profits tax rate, the total cost of ownership for data center equipment and operations is highly attractive.
Natural Disaster Risk
As of September 2025, Yuen Long District has a low overall risk profile for natural disasters. While comprehensive risk data is not publicly available, the primary environmental consideration for the Hong Kong region is its exposure to seasonal typhoons.
Key potential hazards include:
- Tropical Cyclone / Typhoon: The region is susceptible to strong winds and heavy rainfall during typhoon season from May to November.
- Storm Surge / Coastal Flooding: While Yuen Long is more inland, severe storm systems can cause flooding in low-lying areas.
- Rainfall / Inland Flooding: Intense periods of rain can test drainage systems and present risks of localized flooding.
Modern data centers in the area are purpose-built to mitigate these specific risks with reinforced structures and advanced flood prevention measures.
