Press release
Hong Kong Data Center Colocation Market Size to Reach USD 2.75 Billion by 2031 - Arizton
According to recent research by Arizton, the Hong Kong data center colocation market was valued at USD 1.57 billion in 2025 and is expected to reach USD 2.75 billion by 2031, growing at a CAGR of 9.79% during the forecast period. Hong Kong is strengthening its position as a key destination for colocation investment, with around 56 operational colocation facilities across major data center locations, including Tsuen Wan, Kwai Chung, Tseung Kwan O, Fo Tan, Chai Wan, Fanling, and Tai Po. Tseung Kwan O has emerged as one of the market's most prominent data center hubs, attracting investments from both global and local colocation service providers. The market is also set for further capacity expansion, with around 15 new data centers currently under construction or in the planning stage.
Explore the Latest Industry Analysis Now: https://www.arizton.com/market-reports/hong-kong-data-center-colocation-market
Hong Kong Data Center Colocation Market Snapshot
Market Size - Colocation Revenue: USD 2.75 Billion (2031)
CAGR - Colocation Revenue: 9.79% (2025-2031)
Market Size - Utilized White Floor Area: 7.06 million sq. feet (2031)
Market Size - Utilized Racks: 168.26 thousand units (2031)
Market Size - Utilized It Power Capacity: 1,390 MW (2031)
Base Year: 2025
Forecast Year: 2026-2031
Factors Attracting Colocation Investments in Hong Kong
• Hong Kong is strengthening its position as a major technology hub in APAC through investments in AI, fintech, and digital infrastructure. In 2026, the government allocated over USD 127.6 million to develop the Hong Kong AI Research and Development Institute, supporting future demand for computing and data center capacity.
• Hong Kong has approximately five operational submarine cables connecting it with major Asian markets, including China, Japan, Singapore, South Korea, Taiwan, Malaysia, Thailand, Vietnam, and the Philippines. An additional submarine cable under development is expected to strengthen connectivity with Cambodia.
• Hong Kong's Personal Data (Privacy) Ordinance (PDPO) provides an established framework for the collection, use, storage, and protection of personal data, supporting organizations that manage and store data in the city.
Hong Kong's Sustainability Targets Drive Greener Data Center Operations
Hong Kong's sustainability targets are driving greater focus on energy efficiency and renewable power across the data center market. The government aims to reduce carbon emissions by 50% by 2035 and achieve carbon neutrality before 2050, with plans to invest USD 240 billion in climate and sustainability initiatives over the next 15-20 years. Hong Kong also targets generating at least 7.5% of its electricity from renewable sources by 2035 and over 15% by 2050. Colocation operators are also working to reduce the carbon footprint of their facilities. SUNeVision Holdings, one of Hong Kong's largest data center operators, has committed to powering its data centers in Hong Kong with 100% renewable energy by 2050.
Rising Rack Densities Drive Liquid Cooling Adoption in Hong Kong Data Centers
Hong Kong's data center market is moving toward high-density infrastructure as demand for AI, high-performance computing (HPC), and cloud workloads increases. With rack densities increasingly surpassing 20-30 kW, traditional air-cooling systems are becoming less effective, driving greater adoption of liquid cooling technologies. Limited land availability and high real estate prices are also supporting the development of vertical, multi-story data centers. Operators such as DayOne, Global Switch, Equinix, and Digital Realty are investing in advanced cooling technologies as higher rack densities and vertical facility development reshape cooling requirements across the Hong Kong market.
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Key Vendors in the Hong Kong Data Center Colocation Market
Existing Colocation Operators
• Goodman
• iAdvantage
• Equinix
• DayOne (GDS Services)
• China Mobile International
• iTech Towers Data Centre Services
• AirTrunk
• NTT DATA
• Global Switch
• China Unicom
• Digital Realty
• Telehouse
• BDx Data Centers
• CITIC Telecom International Holdings
• Towngas Telecom
• OneAsia Network
• Hong Kong Exchanges & Clearing (HKEX)
• Other Operators
New Operators
• Runze Technology (Range IDC)
• ESR
• Chinachem Group
• Mapletree Investments
• TPG Angelo Gordon
• China Telecom
The Hong Kong Data Center Colocation Market Report Includes
• Colocation Supply (MW, Area, Rack Capacity)
• Colocation Demand (MW, Area, Rack Capacity) and by End-User (Cloud/IT, BFSI, etc.)
• Colocation Revenue (Retail & Wholesale Colocation Services)
• Competitive Scenario (Market Share Analysis by Revenue & MW Capacity)
What Key Findings Will Our Research Analysis Reveal?
• How much MW of IT power capacity is likely to be utilized in Hong Kong by 2031?
• What is the count of existing and upcoming colocation data center facilities in Hong Kong?
• What factors are driving the Hong Kong data center colocation market?
• Who are the new entrants in the Hong Kong data center industry?
Some of Our Top-Selling Market Reports
Global Data Center Market Landscape 2026-2031
https://www.arizton.com/market-reports/data-center-market-investment-forecast
China Data Center Market - Investment Analysis & Growth Opportunities 2026-2031
https://www.arizton.com/market-reports/china-data-center-market
About Us:
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.
Contact Us
Mail: enquiry@arizton.com
Contact Us: https://www.arizton.com/contact-us
Website: https://www.arizton.com/
Call: +1 312-680-2940
Source: Arizton Advisory & Intelligence
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