Arizton’s latest research highlights that the Hong Kong data center market, valued at USD 3.62 billion in 2025, is on track to reach USD 5.81 billion by 2031, reflecting a robust CAGR of 8.19%. Strategically positioned as a premier commercial hub and the gateway to mainland China, Hong Kong is witnessing a transformative shift from mere capacity expansion to strategic, high-value infrastructure deployment. Growth is increasingly driven by high-density AI and GPU workloads, latency-critical edge services, and escalating demand from hyperscale cloud operators, underscoring the market’s pivotal role in supporting next-generation digital economies.
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Report Summary:
MARKET SIZE (INVESTMENT): USD 5.81 Billion (2031)
MARKET SIZE (AREA): 440 Thousand Sq. feet (2031)
MARKET SIZE (POWER CAPACITY): 110 MW (2031)
CAGR – INVESTMENT (2024-2030): 8.19%
COLOCATION MARKET SIZE (REVENUE): USD 2.75 Billion (2031)
HISTORIC YEAR: 2022-2024
BASE YEAR: 2025
FORECAST YEAR: 2026-2031
Hong Kong Data Center Market Investments to Exceed USD 5.81 Billion by 2031
Hong Kong is strengthening its position as a preferred data center investment hub in Asia, supported by its strategic geographic location, mature digital infrastructure, and policy environment conducive to technology growth. The city continues to attract global data center operators seeking to expand regional capacity and service networks. Investment momentum is accelerating as new operators enter the market and scale their presence to capture rising demand from cloud adoption, enterprise digitalization, and data-intensive workloads. By 2031, total data center investments in Hong Kong are projected to exceed USD 5.81 billion, reflecting the expansion of the digital economy and sustained infrastructure development. This influx of capital underscores growing confidence in Hong Kong’s ability to support large-scale, high-performance data center operations over the long term
Hong Kong Data Center Market – Key Highlights
IoT- and 5G-Led Growth Is Redefining Hong Kong’s Digital Infrastructure Needs
Hong Kong is strengthening its position as a regional digital infrastructure hub as adoption of big data, IoT, and 5G accelerates across the economy. This shift is driving digital transformation in sectors such as logistics, manufacturing, healthcare, and financial services, where enterprises are increasingly deploying data-driven and automated systems to improve efficiency and real-time decision-making. As a result, Hong Kong’s IoT market is projected to grow from USD 2.40 billion in 2025 to over USD 3.75 billion by 2029, reflecting sustained enterprise technology investment. Supporting this momentum, innovation platforms such as FLAIR and Cyberport are enabling the commercialization of AI, big data, and IoT solutions. In parallel, rising 5G adoption is reshaping connectivity requirements, accelerating demand for low-latency computing and driving the need for edge data centers to support real-time, data-intensive applications.
Hong Kong Data Center Market Expands: 54 Operational Facilities with 4.5M sq. ft., 13 More Adding 2.33M sq. ft.
The Hong Kong data center market continues to expand despite structural land constraints, fueled by strong demand for cloud, colocation, and digital infrastructure services. As of September 2025, Hong Kong hosts 54 operational data center facilities with a combined 4.5 million square feet of white floor space, while 13 additional facilities are in the pipeline, adding approximately 2.33 million square feet. Tseung Kwan O remains a key growth hub, where major operators including SUNeVision (iAdvantage), Digital Realty, Global Switch, and Telehouse are expanding capacity to meet rising enterprise and hyperscale demand. Despite industrial land prices among the highest in the region, forecast to rise 3%–4% annually, investment momentum remains strong. New entrants like TPG Angelo Gordon are developing 100,000 sq. ft. in Tuen Mun, while established players such as Global Switch maintain scale advantages, accounting for 8.03% of the total market area.
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The segmentation includes:
IT Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
General Construction
Tier Standard
Vendor Landscape
IT Infrastructure Providers
Data Center Construction Contractors & Sub-Contractors
Support Infrastructure Providers
Data Center Investors
New Entrants
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