Global data center operator Equinix is beefing up its commitment to Hong Kong through ongoing investments aimed at capitalizing on the rising demand for digital infrastructure — the latest vote of confidence in the city’s expanding digital economy and its role in regional integration.
Following its $124 million investment announced in August to build its sixth data center in Hong Kong, the California-based company launched an initiative in October offering eligible companies up to $100,000 in credits to access its facilities.
The seamless flow of data is seen as a vital growth driver in today’s world, where data centers play an integral role by hosting everything from essential business information to the applications that support everyday life, Joanne Hon, managing director at Equinix Hong Kong, said in an interview with China Daily.
As businesses continue to embrace emerging technologies such as artificial intelligence and edge computing, it is the synergy between speed and connectivity that is rapidly becoming essential. “That's the trend that we'll continue to see into 2025 and beyond in the next few years,” said Hon.
Unprecedented opportunities driven by innovative applications and policy tailwinds leave data center operators feeling vindicated in their decision to play for keeps in the Chinese territory.
Commercial real estate services firm JLL estimates that global data creation is to double in the next five years compared to the past decade. The growth of data center storage capacity is expected to increase from 10.1 zettabytes last year to 21 zettabytes in 2027, reflecting a five-year compound annual growth rate of 18.5 percent thanks to the AI boom.
Locally, Hong Kong Chief Executive John Lee Ka-chiu outlined an array of initiatives in the Policy Address 2024 to promote the integration of the digital and real economy. These include encouraging digital transformation within the business sector, developing a data-trading ecosystem, and piloting facilitation arrangements for cross-boundary data flow within the Guangdong-Hong Kong-Macao Greater Bay Area — a regional economic powerhouse encompassing three distinct jurisdictions in the nation.
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What’s more, the first phase facility of the AI supercomputing center in Cyberport is expected to start operating by year-end.
“We're very committed to this market, and part of the reason is because Hong Kong is a key hub for many businesses and industries,” said Hon, citing a 50 percent increase in traffic via the company’s internet exchange service in the city over the past year.
Established in 1998 in Silicon Valley, Equinix has expanded globally, operating over 260 data centers worldwide, including facilities in eight markets across the Asia-Pacific region.
Equinix started its operations in Hong Kong in 2002 and currently runs five data centers, serving hundreds of businesses across various industries. Key partners include cloud providers such as Microsoft Azure and Amazon AWS, along with Chinese State-owned telecommunications companies. Its sixth data center is expected to become operational by the first quarter of 2026.
According to InvestHK, the government's investment promotion agency, Hong Kong is home to 37 data center operators and 60 data centers.
Describing Hong Kong as a gateway to the Greater Bay Area, Hon said Equinix will strive to leverage the city’s strategic position to facilitate data collaboration and enhance connectivity between China and the rest of the world.
