Impact of the Tseung Kwan O Industrial Estate on the data centre market dynamic in Hong Kong
The Tseung Kwan O Industrial Estate (TKOIE) issue: There has been notable controversy surrounding the TKOIE, specifically pertaining to the potential impact on data centres operating within its jurisdiction. The primary issue of contention is the subletting restriction within TKOIE imposed by the Hong Kong Science and Technology Park (HKSTP) which states that ‘applicants (data centre operators) are requested to note our standard lease restriction on alienation in that the grantee (data centre operator) shall not part with possession of the lot or any part thereof. In effect, no subletting shall be allowed and the grantee (data centre operator) shall always retain exclusive possession of the premises including the control of access right.’
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