The Future of Data Centres in Hong Kong

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Data is a vital resource for enterprises and societies. It drives innovation, enables efficient operations and supports regulatory compliance. It is a key ingredient for new growth industries and the digitisation of traditional sectors. But managing big data can be complex and require special expertise. Aside from the obvious challenges, there are several other issues that need to be considered, including privacy, security and cost.

To address the issue, data centre operators need to make sure they have access to high-quality, low-latency network services and a suitable infrastructure. This is important to ensure that they can deliver the best possible performance to their customers and keep pace with evolving business requirements.

As a global hub for technology, Hong Kong is an ideal location for data centres. Its connectivity with mainland China and the rest of the world, as well as its extensive service offerings, will continue to drive demand. According to Colliers, by 2028, the city will have approximately 6 million sq. ft. of new data centre supply. However, most of this stock is already fully pre-committed to tenants.

This means that the city needs to develop its own data centre ecosystem to support the sector’s development. To this end, it is establishing a strategic policy to promote data centre development and foster the development of the digital economy.

One important step in this direction is to allow more cross-border data flows. This is especially important for the Greater Bay Area (GBA), which is expected to become a major conduit between mainland China and the rest of the world. In June, the governments of Hong Kong and China signed a MoU to allow universities and research institutes in the GBA to bypass Beijing’s Great Firewall for scientific research purposes.

Data protection in Hong Kong is governed by the Personal Data Protection Ordinance (PDPO). The legislation applies to organisations and individuals that process personal data. It defines personal data as information relating to an individual who can be identified, either directly or indirectly, from the data. The PDPO requires data users to have in place appropriate safeguards and technical measures to protect personal data from unauthorised access, processing, erasure, loss or use.

Moreover, it is also required that data users notify the Information Commission of any breach of personal data and allow the Commission to review the breach. This is intended to enhance accountability and transparency in the handling of personal data.

Lastly, the PDPO stipulates that data used for legal proceedings must be held securely and only for as long as necessary for the purpose for which it is used. There are some exceptions to this, such as where it is necessary for the prevention or detection of crime, for the prevention or exclusion of unlawful or serious improper conduct or dishonesty, for the purposes of news activities, and for the obtaining of evidence in legal proceedings.