{"id":25635,"date":"2021-11-01T06:53:22","date_gmt":"2021-10-31T23:53:22","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=25635"},"modified":"2021-10-31T17:58:47","modified_gmt":"2021-10-31T10:58:47","slug":"hong-kongs-rapid-digital-transformation-leads-to-demand-for-data-centres","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/hong-kongs-rapid-digital-transformation-leads-to-demand-for-data-centres\/","title":{"rendered":"Hong Kong’s rapid digital transformation leads to demand for data centres"},"content":{"rendered":"

Digital acceleration is also driven by the government\u2019s push for development in innovation and technology<\/span>\u00a0<\/span><\/p>\n

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A senior executive at local developer Grand Ming Group (1271) said the spread of big data and 5G technology is the general trend of future development in the world. Krunja\/Shutterstock<\/figcaption><\/figure>\n

According to The Standard<\/a>, numerous industrial buildings in Hong Kong\u2019s Kwai Tsing District transformed into data\u00a0centres\u00a0due to the government\u2019s\u00a0robust promotion of the development of innovation and technology,\u00a0including the higher\u00a0demand for network connection amid the pandemic.\u00a0<\/span>\u00a0<\/span><\/p>\n

Hong Kong is known to have one of the most expensive properties in the world, considering its tight supply of land. <\/span>\u00a0<\/span><\/p>\n

However, with the advent of the 5G era, as well as the quick development of the Internet of Things (IoT) and\u00a0artificial\u00a0intelligence,\u00a0various industries have accelerated their digital transformation and demand for data\u00a0centre\u00a0facilities and services.\u00a0<\/span>\u00a0<\/span><\/p>\n

Along with the policy of industrial-building\u00a0revitalisation, more than six projects in Kwai\u00a0Tsing\u00a0have been applied for reconstruction\u00a0and\u00a0changing\u00a0them\u00a0into\u00a0data\u00a0centres. Half are under the Chinese data\u00a0centre\u00a0solution provider GDS (9698), involving a gross floor area of\u00a0around\u00a0750,000 square feet.\u00a0<\/span>\u00a0<\/span><\/p>\n

The first one to be completed among the three is Luen Fat Industrial (First) Building at No 2-16 Lam Tin Street. It has been approved for the construction of a 23-storey data\u00a0centre\u00a0with a total gross floor area of about 246,800 square feet and is expected to be completed in 2022 at the earliest.<\/span>\u00a0<\/span><\/p>\n

By the middle of 2022, it will provide data\u00a0centre\u00a0services for financial institutions,\u00a0international\u00a0telecommunications\u00a0operators and local enterprises, and internet and cloud service providers.\u00a0<\/span>\u00a0<\/span><\/p>\n

The last construction among the six projects is from\u00a0Soundwill\u00a0(0878) for the redevelopment of a 20-storey data\u00a0centre\u00a0with a total gross floor area of about 218,000 square feet in the South China Cold Storage Industrial Building.<\/span>\u00a0<\/span><\/p>\n

More: Hong Kong\u2019s office space availability rate drops to 13.9% in Q3 2021\u00a0<\/a><\/strong><\/p>\n

A senior executive at local developer Grand Ming Group (1271) said the spread of big data and 5G technology is the general trend of future development in the world.\u00a0<\/span>\u00a0<\/span><\/p>\n

Vincent Cheung Kiu-cho, managing director of Vincorn Consulting and Appraisal, anticipates the demand for data centre services to continue to grow as the use of cloud-based applications, big data analysis, and artificial intelligence popularises during the pandemic.<\/span>\u00a0<\/span><\/p>\n

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The Property Report editors\u00a0<\/span>wrote<\/span>\u00a0this article. For more information, email:\u00a0<\/span><\/span>propertyreport@propertyguru.com<\/span><\/span><\/a>.<\/span><\/span>\u00a0<\/span><\/span>\u00a0<\/span><\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Digital acceleration is also driven by the government\u2019s push for development in innovation and technology\u00a0<\/p>\n","protected":false},"author":12,"featured_media":25636,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[496,1135,171,309],"class_list":["post-25635","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-data-centres","tag-digital-transformation","tag-hong-kong","tag-industrial","news_country-hongkong","news_author-property-report"],"acf":[],"yoast_head":"\nHong Kong's rapid digital transformation leads to demand for data centres | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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