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Hong Kong Data Center Market Size

The Hong Kong Data Center Market is projected to experience significant growth in its market size over the forecast period. The expansion is driven by the increasing demand for tier 4 data centers, which offer superior IT load capacity, high bandwidth, and reduced downtime, making them preferable for businesses reliant on uninterrupted service. The rise in digital applications, streaming content, and smart devices has further fueled the need for enhanced data center capabilities. While tier 4 data centers dominate due to their advanced features, tier 3 data centers are also expected to grow, supported by smart city initiatives.

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Market Size of hong kong data center Industry

Hong Kong Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 0.95 Thousand MW
svg icon Market Volume (2029) 1.78 Thousand MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 13.36 %
svg icon Fastest Growing by Tier Type Tier 4
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Hong Kong Data Center Market Analysis

The Hong Kong Data Center Market size is estimated at 0.95 thousand MW in 2024, and is expected to reach 1.78 thousand MW by 2029, growing at a CAGR of 13.36%. Further, the market is expected to generate colocation revenue of USD 732.5 Million in 2024 and is projected to reach USD 1,371 Million by 2029, growing at a CAGR of 13.36% during the forecast period (2024-2029).

USD 732.51 Million

Market Size in 2024

USD 1,371 Million

Market Size in 2029

11.8%

CAGR (2017-2023)

13.4%

CAGR (2024-2029)

IT Load Capacity

949.9 MW

Value, IT Load Capacity, 2024

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Increasing demand for smart devices, such as smartphones and tablets, to use varying services such as streaming, browsing, and playing games has led to consumers opting for 4G and 5G services, creates more need of data storage space.

Total Raised Floor Space

Sq. Ft. 3.40 M

Volume, Raised Floor Space, 2024

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The total raised floor space in the country is expected to reach 6.3 million sq. ft by 2029. Growing smart city initiatives are expected to trigger the growth of the DC facilities in the region during the study period.

Installed Racks

170,035

Volume, Installed Racks, 2024

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The total number of installed racks is expected to reach 318,247 by 2029. Tseung Kwan O is expected to house the maximum number of racks over the years.

# of DC Operators & DC Facilities

17 and 53

Volume, DC Facilities, 2024

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There are 53 colocation data center facilities in Hong Kong. The scarcity of land for the development of data centers, stringent and complex data laws and governing systems have acted as barriers to the growth of the data centers market.

Leading Market Player

8.3%

Market Share, SuneVision Holdings Ltd, 2023

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SuneVision Holdings Ltd currently leads the market with an IT load capacity of 70 MW and a market share amounting to around 8.3%. The company aims to further strengthen its presence through the completion of its Mega DC facilities.

Tier 3 data center holds majority market share in 2023, Tier 4 data center is fastest growing

  • Tier 4 data centers lead Hong Kong's data center market based on tier capacity. Their IT load capacity is expected to increase from 330.3 MW in 2022 to 1092.3 MW by 2029 at a CAGR of 18.6%. A growing number of IT businesses and smart devices and increased use of varying digital applications have led to consumers opting for tier 4 data centers.
  • Tier 4 data centers offer high bandwidth, lower downtime, disaster recovery, low latency, and better connectivity. Clients, such as content providers that cannot afford a longer duration of downtime, prefer to use tier 4 data centers.
  • The increased use of streaming content, online gaming, and smart devices led to increased consumption in the country. Increased consumption of data and better services have led companies to opt for tier 4 data centers. However, growing smart city initiatives are expected to trigger the growth of Tier 3 data centers as well, with a CAGR of 5.9%.
Hong Kong Data Center Market

Hong Kong Data Center Industry Segmentation

Chai Wan, Shatin, Tseun Wan, Tseung Kwan O are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • Tier 4 data centers lead Hong Kong's data center market based on tier capacity. Their IT load capacity is expected to increase from 330.3 MW in 2022 to 1092.3 MW by 2029 at a CAGR of 18.6%. A growing number of IT businesses and smart devices and increased use of varying digital applications have led to consumers opting for tier 4 data centers.
  • Tier 4 data centers offer high bandwidth, lower downtime, disaster recovery, low latency, and better connectivity. Clients, such as content providers that cannot afford a longer duration of downtime, prefer to use tier 4 data centers.
  • The increased use of streaming content, online gaming, and smart devices led to increased consumption in the country. Increased consumption of data and better services have led companies to opt for tier 4 data centers. However, growing smart city initiatives are expected to trigger the growth of Tier 3 data centers as well, with a CAGR of 5.9%.
Hotspot
Chai Wan
Shatin
Tseun Wan
Tseung Kwan O
Rest of Hong Kong
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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Hong Kong Data Center Market Size Summary

The Hong Kong data center market is experiencing significant growth, driven by the increasing demand for digital services and smart devices. The market is characterized by a strong preference for Tier 4 data centers, which offer high bandwidth, low latency, and robust disaster recovery options, making them ideal for clients like content providers who require minimal downtime. The rise in smartphone users and the adoption of digital wallets have further fueled this demand, as consumers increasingly rely on mobile devices for streaming, gaming, and online transactions. The proximity to China and the availability of affordable high-end smartphones have also contributed to the surge in smartphone usage, intensifying competition among foreign smartphone companies.

The market landscape is fragmented, with major players such as China Mobile International Ltd., Digital Realty Trust, Inc., Equinix, Inc., NTT Ltd, and Rackspace Technology Inc. holding significant shares. These companies are actively expanding their operations in the region to meet the growing business needs. The implementation of 5G technology is expected to enhance data speeds, supporting the automation trends in various industries, particularly manufacturing. As smart city initiatives gain momentum, there is also a projected growth in Tier 3 data centers. The market's expansion is further supported by strategic developments, such as new regional offices and joint ventures, aimed at strengthening the presence and capabilities of key players in the Asia-Pacific region.

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Hong Kong Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Chai Wan

      2. 1.1.2 Shatin

      3. 1.1.3 Tseun Wan

      4. 1.1.4 Tseung Kwan O

      5. 1.1.5 Rest of Hong Kong

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

Hong Kong Data Center Market Size FAQs

The Hong Kong Data Center Market is projected to register a CAGR of 13.36% during the forecast period (2024-2029).

China Mobile International Ltd., Digital Realty Trust, Inc., Equinix, Inc., NTT Ltd and Rackspace Technology Inc. are the major companies operating in the Hong Kong Data Center Market.

Hong Kong Data Center Market Report Snapshots

Hong Kong Data Center Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis Up to 2029