Description
Hong Kong had become something of a forgotten market, as most providers in the region pivoted their focus to Malaysia, Japan, Australia, Indonesia and Thailand. Demand did not follow them. Over 2025 and 2026, Chinese hyperscalers drove elevated leasing activity in Hong Kong as they expanded their AI data centre footprint into international markets, and Hong Kong has been one of the primary beneficiaries.
Hong Kong absorbed 181.8MW of data centre capacity in 2026, the highest annual total in Structure Research’s (SR) 2021 to 2031 series and 39% more than the 131.0MW absorbed in 2025. SR estimates the colocation market at US$2.83 billion in 2026, rising to US$4.82 billion by 2031, which represents a five year CAGR of 11.2%.
Chinese hyperscalers drive most of that demand. They accounted for 130.2MW of the 150.2MW of hyperscale leasing SR recorded in 2026. Policy backing from Beijing, a growing supply of domestic chips and the global build out of AI capacity have pushed Chinese cloud and AI platforms to secure Hong Kong capacity at scale, and at prices well above 2025 levels. US hyperscalers and western enterprises also came back in Q2 2026 after a cautious 2025, helped by a partial easing in US-China relations. Hong Kong now draws on both demand streams at once.
AI demand in Hong Kong is primarily inference- driven. Land, water and power all cost more here than in the Mainland or Southeast Asia, so large training clusters are deployed in other more cost effective markets. What Hong Kong offers is international connectivity, an open internet and a global business base, all inside Chinese territory. Chinese platforms train at home and deploy through Hong Kong. Government backed AI capacity adds to this, led by the Sandy Ridge Data Facility Cluster in the Northern Metropolis.
Supply is now the binding constraint. SR’s average core hyperscale price rose from US$105 per kW per month in 2025 to US$143 in 2026, and SR projects US$173 in 2027. Contracted capacity reached 860.6MW in 2026, more than the 837.5MW that operational buildings can hold at full fit out. Capacity due for service through Q4 2027 is either contracted or contested. Operators are buying land and brownfield industrial sites to get ahead of this, mostly in the north, where power availability, government support and proximity to Shenzhen favour new builds.
2026 also brought Hong Kong’s first hyperscaler asset acquisition. Structure Research understands a US hyperscaler acquired an entire building in New Territories North and will operate it directly. SR sees this as an exception. Land cost and scarcity keep Hong Kong a leasing market.
This report takes an in depth look at the Hong Kong colocation and interconnection market. SR tracks the market’s size and rate of growth, the inventory position and the demand profile, with a full view of supply, demand and absorption through 2031. The report maps cloud infrastructure and interconnection nodes across the market, breaks out the new build pipeline by subregion, and pays particular attention to leasing by the top hyperscale platforms given that they now account for the majority of demand.
This report is a resource for any operator, investor or end user (service provider or enterprise) looking to understand and project the Hong Kong data centre market, or to find a service provider.
