Chinese tech companies, from ByteDance to AI startups, are driving a surge in Hong Kong data center leasing in 2026 as they use the city to test AI models and expand overseas.

Structure Research, a data center consultancy, said wholesale pricing bands for hyperscalers rose about 90% since the start of the year to as much as US$180 per kilowatt.

Chinese companies accounted for roughly 90% of recent leasing deals.

Hong Kong’s appeal partly reflects a lighter cross-border data transfer regime.

Restrictions on sending personal data out of the city have not taken effect, while mainland China requires security assessments, consent, and in some cases data localization for outbound transfers.

The market is compact, with about 737 megawatts across 80 facilities, and new projects are clustered in industrial zones.

Operators including SUNeVision, a Hong Kong-based data center operator, DayOne, and Equinix are expanding to meet AI-driven demand.

Equinix announced an initial investment of US$124 million in its HK6 site in 2024 to support liquid cooling for AI workloads.

Still, US export controls have limited shipments of some of Nvidia’s most advanced AI chips to China and Hong Kong.

🔗 Source: Bloomberg

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