Mapletree buys land parcel in Hong Kong to develop data center

Mapletree buys land parcel in Hong Kong to develop data center

Mapletree Investments has acquired a land parcel at Fanling Sheung Shui Town in New Territories, Hong Kong SAR for HK$813 million (S$139.9 million) through tender.

Mapletree said the approximately 4,000 square metres (sqm) industrial site will be developed into a data centre with a maximum gross floor area of 20,140 sqm.

This property will be Mapletree’s first data centre development in Hong Kong SAR. The proposed development is capable of delivering up to 50MVA of building power and can be leased to an end-user or a data centre operator upon completion in 2023.

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“We are excited about winning this development land parcel. Long-term macro drivers such as growing cloud computing, e-commerce as well as the impending 5G network, are expected to drive demand for data centres. Hong Kong SAR stands out as an attractive location for data centres with its advanced telecommunications infrastructure, reliable power supply at reasonable cost, limited climate risks as well as strong demand from local corporations for cloud services,” said Wong Mun Hoong, Mapletree’s Regional Chief Executive Officer for Australia & North Asia.

The planned development is strategically located approximately six kilometres (km) away from Luohu, providing good connectivity for Chinese cloud players based in Shenzhen.

The site is also near the two interconnection points, Man Kam To and Lok Ma Chau. This will allow the development to offer strong network connectivity to major cities in Mainland China for speedy and reliable cross-border communications.