Press Release
AI Boom Fuels Data Centre Demand in Hong Kong Amid Tight Supply and Rising Costs: CBRE
June 4, 2025
Media Contact
Christine Tai
Associate Director, Marketing & Communications, Hong Kong
– Hong Kong’s data centre market continues to experience robust demand driven by the AI boom and digital transformation across industries, according to CBRE’s latest Asia Pacific Data Centre Trends & Opportunities report.
Despite limited land availability and power constraints, colocation prices in Hong Kong are on the rise, while vacancy rates continue to decline. These highlight Hong Kong’s strategic importance as a regional data hub.
“Hong Kong remains a critical gateway for data traffic in the region. The market’s resilience and strategic location continue to attract investment, even as operators navigate rising costs and infrastructure constraints. We expect sustained demand, particularly from AI and cloud service providers, to shape the next wave of development,” said Samuel Lai, Executive Director, Head of Advisory & Transaction Services, CBRE Hong Kong.
“This demand is being driven primarily by IT service providers, e-commerce platforms, and banking firms from mainland China and Hong Kong. Some Singapore-based occupiers are also eyeing Hong Kong as an alternative, given the limited availability in their home market,” added Samuel.
The city’s appeal is further reinforced by its robust connectivity, proximity to mainland China, and a mature financial ecosystem that supports hyperscale and enterprise demand. However, the market faces mounting pressure from power availability and construction timelines, which are influencing site selection and investment strategies.
These local trends mirror broader challenges across Asia Pacific. “The AI boom and need for cloud services will continue to drive robust demand for both co-location and hyperscale data centres in Asia Pacific in the foreseeable future, attracting significant investor interest,” added Ada Choi, Head of Research, Asia Pacific for CBRE. “Developed markets like Japan, Australia and Korea will see heightened demand, with Singapore also attracting attention despite its supply limitations.”
Despite an expected doubling of Asia Pacific data centre supply over the next three years, the region is projected to face a shortfall of 15–25 gigawatts by 2028 due to limited power availability and a lack of AI-ready infrastructure. The rapid adoption of artificial intelligence and cloud services is driving demand for next-generation facilities, yet many existing and upcoming data centres were not designed to support AI workloads. These AI-focused centres require more than double the power density per server rack, along with advanced cooling systems, structural reinforcements, and low-latency network capabilities—posing a significant challenge for developers.
To read the full report, click here.
Despite limited land availability and power constraints, colocation prices in Hong Kong are on the rise, while vacancy rates continue to decline. These highlight Hong Kong’s strategic importance as a regional data hub.
“Hong Kong remains a critical gateway for data traffic in the region. The market’s resilience and strategic location continue to attract investment, even as operators navigate rising costs and infrastructure constraints. We expect sustained demand, particularly from AI and cloud service providers, to shape the next wave of development,” said Samuel Lai, Executive Director, Head of Advisory & Transaction Services, CBRE Hong Kong.
“This demand is being driven primarily by IT service providers, e-commerce platforms, and banking firms from mainland China and Hong Kong. Some Singapore-based occupiers are also eyeing Hong Kong as an alternative, given the limited availability in their home market,” added Samuel.
The city’s appeal is further reinforced by its robust connectivity, proximity to mainland China, and a mature financial ecosystem that supports hyperscale and enterprise demand. However, the market faces mounting pressure from power availability and construction timelines, which are influencing site selection and investment strategies.
These local trends mirror broader challenges across Asia Pacific. “The AI boom and need for cloud services will continue to drive robust demand for both co-location and hyperscale data centres in Asia Pacific in the foreseeable future, attracting significant investor interest,” added Ada Choi, Head of Research, Asia Pacific for CBRE. “Developed markets like Japan, Australia and Korea will see heightened demand, with Singapore also attracting attention despite its supply limitations.”
Despite an expected doubling of Asia Pacific data centre supply over the next three years, the region is projected to face a shortfall of 15–25 gigawatts by 2028 due to limited power availability and a lack of AI-ready infrastructure. The rapid adoption of artificial intelligence and cloud services is driving demand for next-generation facilities, yet many existing and upcoming data centres were not designed to support AI workloads. These AI-focused centres require more than double the power density per server rack, along with advanced cooling systems, structural reinforcements, and low-latency network capabilities—posing a significant challenge for developers.
To read the full report, click here.
About CBRE Group, Inc
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services (based on 2025 revenue). The company has more than 155,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, data center solutions); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services (based on 2025 revenue). The company has more than 155,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, data center solutions); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.