The development of artificial intelligence (AI) in China is now having a major impact on the data center industry in Hong Kong.
More and more Chinese technology companies, including giants and AI startups, are choosing Hong Kong as a location to test AI models and expand operations to international markets.
This situation has caused the demand for data center space to increase significantly throughout the year.
According to research firm Structure Research, wholesale data center capacity rental prices in Hong Kong have increased by almost 90% since the beginning of the year.
Among the companies adding capacity in the city are ByteDance, Alibaba and Tencent.
In addition, many small and medium-sized AI companies from China have also entered the Hong Kong market to support their overseas business development.
This increase in demand is driven by the use of AI, which requires much higher processing power than traditional cloud computing services.
Therefore, technology companies need more space, electricity and data center infrastructure to train and run their AI models.
Hong Kong is a choice because it offers freer data flows and easier access to global markets than mainland China, which has tighter internet controls.
Hong Kong's strategic location also allows AI companies to test their technology before introducing it to international customers.
This situation also benefits data center operators such as SUNeVision, DayOne Data Centers and Equinix, who are now actively expanding their facilities to meet the growing demand.
At the same time, the financial sector remains a major customer of data centers, especially with the increasing use of system-based trading that requires high-speed internet connections and faster data transmission.
With its advantages as a regional financial and technology hub, Hong Kong is expected to continue to attract investment in the data center industry as AI technology rapidly develops.
