Hong Kong Data Center Market Investment Analysis Report 2021: Market Will Witness Investments of $4 Billion by 2026
Dublin, June 02, 2021 (GLOBE NEWSWIRE) -- The "Hong Kong Data Center Market - Investment Analysis and Growth Opportunities 2021-2026" report has been added to ResearchAndMarkets.com's offering.
The Hong Kong Data Center Market Will Witness Investments of USD 4 Billion by 2026, Growing at a CAGR of ~2% During 2021-2026
Hong Kong is one of the most advanced data center markets in the APAC market. It includes several unique third-party data center service providers operating data center facilities.
In addition, the country includes several on-premises/dedicated data centers owned by local enterprises. It is witnessing investments in about 6 facilities, which are expected to be operational in the next 2-3 years.
COVID-19 has been a strong enabler for further digitization in the country. A stable economy, high-capacity fiber connectivity with the rest of the world, and the increasing local demand for digitalization of business and consumer environments are driving the growth of the Hong Kong data center market.
Key Highlights of the Report
According to Cushman and Wakefield, Hong Kong accounted for 54% of the APAC data center investment in the first half of 2020.
The adoption of advanced technology such as artificial intelligence and big data analytics is likely to increase the demand for high-performance all-flash storage arrays.
Most data centers are shifting to high-capacity switches such as 100GbE, 200GbE, and 400GbE switches with a high number of ports at the core layer.
Diesel generators witness high adoption among data center operators in Hong Kong, with a few opting for Diesel Rotary Uninterruptible Power Supply (DRUPS) systems.
Service operators adopt both water and air-based cooling techniques for cooling purposes.
The Hong Kong Government has implemented the Building Energy Efficiency Ordinance (BEEO) and the Fresh Water-Cooling Towers Scheme (FWCT Scheme) to improve energy efficiency among data centers.
The implementation of 42U, 45U, 47U, and 48U rack units is likely to increase during the forecast period.
The need for specific expertise for installation and commissioning services is growing with increased investments boosting job opportunities.
Several data center providers adopt brownfield construction due to the land shortage in Hong Kong.
Hong Kong Data Center Market Insights
In 2020, 5G was launched in Hong Kong by China Mobile Hong Kong, Hutchinson, and HKT. The 5G deployment has reduced latency, improved speed, and supported IoT devices.
Hybrid cloud services are gaining high traction in Hong Kong; hence, enterprises use private and public cloud environments to efficiently improve information sharing and manage data.
The country has major cloud service providers such as Amazon Web Services, Microsoft, Google, Alibaba, and Tencent.
The Hong Kong government has deployed IoT sensors to collect real-time data on pollution, energy, and water levels in several cities.
In 2020, Microsoft announced the opening of Microsoft 5G IoT Makerspace powered by HKT at Hong Kong Cyberport, enabling the country's startups to explore IoT solutions with HKT's 5G network.
Insurance companies in the country use artificial intelligence (AI) and big data technology to improve efficiency and effectiveness.
In 2020, the Hong Kong government committed over USD 12.5 billion for digital innovation and technology.
Hong Kong Data Center Market Vendor Landscape
The Hong Kong data center market comprises several IT infrastructure providers, construction contractors, support infrastructure providers, and investors. Vendors have involved a flurry of infrastructure and construction activities.
Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Hewlett, and Packard Enterprise (HPE) are some of the leading IT infrastructure providers. Due to the outbreak of the COVID-19 pandemic, the data generation significantly increased, thereby driving the investment in the facilities. Vendors are offering innovative solutions to improve efficiency. The market is likely to witness new players who provide DCIM solutions, installation & commissioning services, and physical security services.
IT Infrastructure Providers
Cisco Systems
Dell Technologies
Fujitsu
Hewlett Packard Enterprise (HPE)
IBM
Inspur
Lenovo
NetApp
Construction Service Providers
Arup
Aurecon Group
BYME Engineering (HK)
Chung Hing Engineers
Cundall
DSCO Group
Faithful+Gould
Gammon Construction
ISG
Studio One Design
Support Infrastructure Providers
ABB
Caterpillar
Cummins
Eaton
Rolls-Royce Power Systems
Mitsubishi Electric
Legrand
Rittal
Schneider Electric
Vertiv
Data Center Investors
AirTrunk Operating
CITIC Telcom International Holdings
Digital Realty
Equinix
GDS Holdings
Global Switch
PCCW
SUNeVision (iAdvantage)
Report Coverage
Existing vs. Upcoming Data Centers
Existing Facilities (Area and Power Capacity)
Tsuen Wan
Kwai Chung
Tseung Kwan O
Fo Tan
Chai Wan
Tai Po
Other locations (Kwun Tong, Wan Chai, Sheung Wan, San Po Kong, Kowloon, Wong Chuk Hang, Ap Lei Chau, Fanling)
List of Upcoming Facilities (Area and Power Capacity)
Hong Kong Data Center Investment Coverage
Infrastructure Type
IT Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
General Construction
IT Infrastructure
Server
Storage
Network
Electrical Infrastructure
Uninterruptible Power Supply (UPS)
Generators
Transfer Switches and Switchgears
PDUs
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Rack Cabinets
Other Mechanical Infrastructure
Cooling Systems
CRAC & CRAH Units
Chillers
Cooling Towers & Dry Coolers
Economizers & Evaporative Coolers
Other Cooling Units
General Construction
Building Development
Installation & Commissioning Services
Building & Engineering Design
Physical Security
DCIM
Tier Segments
Tier I & Tier II
Tier III
Tier IV
Target Audience
Datacenter Real Estate Investment Trusts (REIT)
Datacenter Construction Contractors
Datacenter Infrastructure Providers
New Entrants
Consultants/Consultancies/Advisory Firms
Corporate and Governments Agencies
Snapshot of existing and upcoming third-party facilities in Hong Kong
Facilities Covered (Existing): 50
Facilities Identified (Upcoming): 6
Coverage: Over 7 Regions
Existing vs. Upcoming (Data Center Area)
Existing vs. Upcoming (IT Load Capacity)
Data center colocation market in Hong Kong
Retail Colocation Pricing
Wholesale Colocation Pricing
For more information about this report visit https://www.researchandmarkets.com/r/4lo45k
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