CBRE has released a new report showing that the data center market in Hong Kong continues to be strong because of the rise of AI and digital transformation across industries. Despite limitations in land supply and electricity, Hong Kong’s server colocation prices are rising and vacancies are dropping. These factors highlight Hong Kong’s key role as an Asia - Pacific data center hub.
CBRE’s Raymond Li, Executive Director and Head of Industrial & Logistics, Advisory and Transaction Services, Hong Kong, says that even with rising costs and infrastructure limits, Hong Kong’s resilience and strategic location keep attracting investment. Demand from AI and cloud service providers is expected to lead the next wave of growth.
The current data center demand mainly comes from IT service providers, e - commerce platforms, and banks in Mainland China and Hong Kong. As Singapore’s available space is limited, some tenants there are looking at Hong Kong as an alternative.
Similar challenges exist across the Asia-Pacific. CBRE’s Ada Choi, Head of APAC Research, says that in the foreseeable future, booming AI and demand for cloud services will keep driving strong server colocation and hyperscale data center demand in the region, drawing much investor interest. Demand for mature markets like Japan, Australia, and South Korea will keep growing, and Singapore will remain in the spotlight despite supply limits.
The report projects that data center supply in the Asia-Pacific will double in three years. But due to power limits and lack of AI - supportive infrastructure, a power gap of 15 - 25 gigawatts is expected by 2028. The rapid adoption of AI and cloud services is boosting the need for next - generation data centers.
(From Google News)
