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Work begins on new HK data centre

A real estate investment trust that invests in carrier-neutral data centres and provides colocation and peering services is building a new data centre in Hong Kong, its second in the administrative region.

HKG11 will be a 21,000 square metres (210,000 square feet) building and hold up to a 24MW of IT capacity. It is expected to be online in mid-2021, around the same time as Digital Realty’s upcoming Seoul facility in South Korea.

In 2012, Digital Realty acquired its first Hong Kong data centre on the Tseung Kwan O industrial estate, HKG10, capable of up to 18MW of IT capacity.

Its planned sister facility, HKG11, is located at the nearby but separate Kwai Chung district in Hong Kong and will operate as an auxiliary to HKG10.

The Chief Executive Officer of the firm stated that its investment in Hong Kong is another important milestone on its global platform road map, enabling customers’ digital transformation strategies while demonstrating its commitment to supporting their future growth on PlatformDIGITAL.

As the firm continues to expand in Asia, the launch of the second facility in Hong Kong underscores its importance as a major data hub, providing customers with the coverage, capacity, and connectivity requirements to support their digital ambitions.

The HKG11 facility will be built up to a total of 12 floors, eight of which will be dedicated to customer deployments.

The firm’s MD for the Asia Pacific region noted that Hong Kong is a regional leader in cloud readiness and has significant potential for further cloud adoption along with a strong base of customers with an appetite for digital technologies.

He stated. “We are delighted to launch our new facility, which will go a long way towards meeting the rapidly growing demand and bringing value to customers across the region, especially from China.”

Aside from Hong Kong, Digital Realty is also establishing facilities in Tokyo, Osaka, Singapore, Sydney, and Melbourne.

Hong Kong – a data centre hub

In February 2020, OpenGov Asia reported that a major telecommunications company, currently operating one of the largest globally connected IPv4+IPv6 networks in the world, completed a round of upgrades and improvements to their Hong Kong data centre.

The aim is to boost network performance for end-users throughout China and across the APAC region.

The addition of new local and international connectivity partners has improved network performance and reliability for businesses seeking to reach one of Asia’s busiest centres or international finance, trade, and enterprise.

The data centre market in the Asia Pacific has been forecasted to reach US$32 billion by 2023, behind only North America in terms of regional revenue.

According to the findings of a data analytics and consulting company, the surge in spending during the next four years will stem from enterprise customers “increasingly migrating” existing resources to data centres to “reap benefits from data”.

By 2023, Asia Pacific will account for nearly 30 per cent of the global data centre market, behind North America with 34.2 per cent but ahead of Western Europe on 24 per cent.

The lead analyst on the report stated that the data centre and hosting market growth in the Asia Pacific will be driven by growing demand for cloud services and digitisation from both enterprises as well as the investors.

Investment will continue in new data centre projects by existing and new entrants with a view to expand their presence in the region and serve additional customers.

In addition, with the commercial availability of 5G services in the next 1-2 years, data consumption is expected to grow multiple-folds.

This will result in constant connectivity requirements as well as data centre supported features, for supporting the critical business applications and activities of the enterprises.

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