Hong Kong Data Center Power Market Size (2024 - 2029)

Hong Kong Data Center Power Market Analysis

The Hong Kong Data Center Power Market size is estimated at USD 311.70 million in 2024, and is expected to reach USD 446.90 million by 2029, growing at a CAGR of 7.20% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

• Under Construction IT Load Capacity: The upcoming IT load capacity of the data center market in Hong Kong is expected to reach 1700 MW by 2029.
• Under Construction Raised Floor Space: The country’s construction of raised floor area is expected to increase to 6 million sq. ft by 2029.
• Planned Racks: The country’s total number of racks to be installed is expected to reach 230K units by 2029. NCR Ho Chi Minh City is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are about two submarine cable systems connecting Hong Kong, and a few more cables are expected in the near future. One such submarine cable that is estimated to start service in 2025 is Asia Cable Link ALC, which stretches over 6,000 kilometers with landing points from Hong Kong SAR, Mainland China.
• With its domestic production of energy, Hong Kong has the potential to be partially self-sufficient. Overall, 33 billion kWh of electricity is generated in all the power-generating facilities. It is about 75% of the country’s requirement. The rest of the needed energy is imported from other countries. The production, import, and export sectors contribute significantly in addition to consumer consumption.
• In view of its commitment to reach a carbon dioxide peak by 2030 and be carbon neutral by 2060, Hong Kong is placing energy consumption control at the top of its priorities. Its ongoing “dual control” energy consumption policy is a regulatory effort aiming to control high energy consumption and limit high-emission projects.
• In support of the above policy and to reduce energy consumption, key market players are focusing on introducing efficient power management systems such as PDUs, busways, and UPS for the purpose of controlling unnecessary expenditures in data centers, which is expected to drive the market’s growth. For instance, one of the significant distributors, Kohler Power in Hong Kong, supported one of the region’s largest carriers and cloud-neutral data center operators in expanding 70,000 square meter facility by switching from an aging rotary uninterruptible electricity supply to diesel generators as a means of reducing long-term maintenance costs.

Hong Kong Data Center Power Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, that provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.

The data center power market in Hong Kong is segmented by power infrastructure (electrical solutions (UPS systems, generators, power distribution solutions [PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others], and service) and end user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.