Three data center firms dominate Hong Kong market due to high rent

Three Asia Pacific data center operators dominate the market estimated at $883 million in Hong Kong due to land scarcity and high rents, reported South China Morning Post, citing a report released by Toronto-based consultancy Structure Research, which focuses on data center and Internet infrastructure.

NTT Communications accounted for 23 percent, Sunevision for 18 percent and Equinix for 16 percent, according to the report. It forecasts the sector will grow by 17 percent to $1.03 billion this year, and increase to $1.7 billion by 2023.

Data center rents in Hong Kong were among the highest globally.

“Data centers have been an attractive option for developers and investment funds, as strong demand can support rental growth,” said John Siu, managing director at Cushman & Wakefield.

According to the report, 44 operators run 57 data centers in Hong Kong. Sunevision was the largest operator last year, with a portfolio of 482,000 square feet, about 66.2 percent bigger than Equinix in second place.