Market Trends of Hong Kong Data Center Power Industry
IT & Telecommunication Segment to Hold Major Share in the Market
- The demand for the cloud segment is expected to increase with the growing demand for analytics, visualization tools, and business services. The increasing adoption of cloud-based services is also driving the expansion of hyperscale and wholesale colocation services in Hong Kong, resulting in increased demand for space in data centers and, consequently, the need for more racks within data centers.
- With 5G being introduced in the country, high bandwidth speeds offered led to users opting for multiple smart devices, such as smart wearables, tablets, security systems, smart lighting, etc., which catalyzed the demand for these devices. Around 96% of the population in Hong Kong currently uses smartphones to access the internet on a daily basis.
- To meet the surplus demand, automation has to be introduced in the industry as per Industry 4.0 measures. Increasing demand for streaming services, financial services, and smart home automation applications is expected to further catalyze data consumption.
- The increasing number of users of smart devices, such as smartphones and tablets, for varying needs such as streaming, browsing, and playing games has led to consumers opting for 4G services, thus diminishing the 3G service market over the years. The implementation of 5G is expected to further increase the data speed with the evolving technology over the years, which is expected to cater to the demand as more industries adopt automation in their companies in the manufacturing sector. Such improvements in the market are expected to create more demand for data center servers in the coming years.
- The Minister of Posts and Telecommunications is planning to connect 2,715 kilometers of submarine fiber optic cable network from Hong Kong to Preah Sihanouk. The project was initiated in 2022, with a completion target in 2024. Such developments are expected to increase the adoption of data storage solutions and positively impact the market’s growth.
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Monitored PDUs Expected to Hold Significant Share in the Market
- The increasing focus on digitalization, internet penetration (reached 93.1% by the start of 2023 from 93% during the same period in 2022), strong connectivity, and e-commerce sales across the country creates more need for storage facilities, resulting in huge demand for data centers and a rise in power consumption. Growing demand for data storage has led to the deployment of intelligent power distribution units (PDUs) against simple multi-socket rack installations with server and network equipment, which optimize power consumption in data centers.
- Monitored rack PDUs are essential components in data center and server room infrastructure, providing real-time monitoring of power usage, voltage, current, and other electrical parameters. This data helps administrators make informed decisions about power allocation and capacity planning.
- By tracking power usage trends, administrators can plan for future growth and ensure that power capacity is not exceeded, preventing overloads that could lead to equipment failures. It also helps identify inefficiencies and optimize energy usage. This can lead to cost savings and a reduced environmental footprint by eliminating unnecessary power consumption. In addition, it allows administrators for remote access and control, reducing the need for physical presence and minimizing operational disruptions.
- In the policy addressed in 2021 (The Chief Executive’s 2021 Policy), the Hong Kong government announced the allocation of around USD 30 billion to implement measures on net-zero electricity generation, green transport, and waste reduction for the next 15 to 20 years. This includes the development of distributed power generation, energy efficiency activities, and building conservation.
- Because of the above advancements mentioned with monitored PDUs and the necessity to reduce electricity consumption as per government measures in the country, key players are focusing on introducing energy-efficient products into the market. For instance, in May 2023, Eaton, which provides power management services, launched G3 Universal Input Rack PDUs with dynamic C39 outlets capable of accommodating different plug configurations and input voltage requirements. To meet the most diverse data center rack power requirements, G3UPDU has added new features.
- In May 2023, Legrand, a significant global provider of electrical and digital building infrastructures, introduced the next generation of intelligent rack PDUs PRO4X and Raritan PX4; these new intelligent rack PDU designs revolutionize capacity planning, environmental monitoring, physical and digital access control, workload optimization, and uptime initiatives. Such developments in the segment are predicted to boost regional demand over the forecast period.
