Market Size of hong kong data center Industry
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 0.95 Thousand MW |
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Market Volume (2029) | 1.78 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 13.36 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
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
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
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
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
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
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 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 | |||||||||||||||||
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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.
Hong Kong Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Hotspot
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1.1.1 Chai Wan
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1.1.2 Shatin
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1.1.3 Tseun Wan
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1.1.4 Tseung Kwan O
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1.1.5 Rest of Hong Kong
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1.2 Data Center Size
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1.2.1 Large
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1.2.2 Massive
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1.2.3 Medium
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1.2.4 Mega
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1.2.5 Small
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1.3 Tier Type
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1.3.1 Tier 1 and 2
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1.3.2 Tier 3
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1.3.3 Tier 4
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1.4 Absorption
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1.4.1 Non-Utilized
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1.4.2 Utilized
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1.4.2.1 By Colocation Type
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1.4.2.1.1 Hyperscale
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1.4.2.1.2 Retail
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1.4.2.1.3 Wholesale
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1.4.2.2 By End User
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1.4.2.2.1 BFSI
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1.4.2.2.2 Cloud
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1.4.2.2.3 E-Commerce
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1.4.2.2.4 Government
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1.4.2.2.5 Manufacturing
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1.4.2.2.6 Media & Entertainment
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1.4.2.2.7 Telecom
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1.4.2.2.8 Other End User
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Hong Kong Data Center Market Size FAQs
What is the current Hong Kong Data Center Market size?
The Hong Kong Data Center Market is projected to register a CAGR of 13.36% during the forecast period (2024-2029).
Who are the key players in Hong Kong Data Center Market?
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.
