Published on Computerworld Hong Kong, 10 Nov 2011 

The Chief Executive’s recent effort to reserve two hectares of land in Tseung Kwan O for datacenter development is encouraging. After all, this is one of the few “land grants” for a specific industry purpose—since the approval of Tseung Kwan O Industrial Estate in 1994 and the incorporation of Hong Kong Science and Technology Park in 2001.

However, two hectares are not enough and my fellow technology professionals agree. Some of them believe the initiative shows the administration lacks long-term vision.

As a technology professional, I believe a datacenter cluster will become one of the pillars of Hong Kong’s future economic development and job creation initiatives. As a legislative councilor, I should also explain this vision to the public and explain why a long-term planned approach is needed for Hong Kong.

Hong Kong has the potential to host up to ten Tier-4 (highest end) datacenters. If the government acknowledges the potential for local economic development, 20 hectares should be allocated upfront, as the industry suggested.

A gateway between China and overseas markets

In my recent visit to Beijing, Xi Guo-hua, executive director and vice chairman of China Mobile, mentioned the company has concrete plans to place its headquarters for international business in Hong Kong. But China Mobile is not alone.

For many mainland enterprises, Hong Kong offers advantages—a trusted legal and administrative system, professional integrity, a free press, an open information environment and most importantly, the city is part of China. Many would like to sell products and services in Hong Kong, and to the world through our gateway.

The reverse is also true: Hong Kong is the path to China for many multinational companies. Google plans to invest US$100 million to build its datacenter in Hong Kong. Many international companies are also recognizing the advantage of our legal system, particularly in resolving conflicts on intellectual property rights.

Foundation for cloud computing

Cloud computing development relies on powerful datacenter facilities. Hong Kong’s communication network is seamlessly connected to the world’s Internet system, creating multiple opportunities in cloud computing through collaboration with the mainland.

The Chinese government is planning to build five “cloud computing” centers—Beijing, Shanghai, Wuxi, Hangzhou and Shenzhen. Hong Kong should aim to become the sixth “cloud city” that specializes in connecting China to the world. Hong Kong is uniquely placed for this opportunity because of its location and relationship with mainland China.

Driving economic growth

In New York, London and Singapore, datacenters are built at the periphery of core business district. Locally, we have focused on Tseung Kwan O as the site for our Tier-4 datacenter cluster—a concept similar to other former industrial-zone re-developments like East Kowloon. If Tseung Kwan O became a cluster housing a dozen Tier-4 datacenters, the benefits would extend beyond the ICT business.

To support these datacenters, the operators require support from other professionals: power-supply, property security and professionals in property infrastructure. Such a cluster would spark related digital and creative businesses, like smartphone apps development, software development for the logistics, banking and finance sectors, and music and video productions. These businesses will also encourage the conversion of other industrial buildings for new purpose.

A strategy beyond land allocation

I’m not an urban planner, but it’s clear that a holistic view is required to make this happen. The Planning Department should conduct a comprehensive study on resources for high-value and knowledge-intensive industries, including the datacenter initiative.

It’s never been easy for other industries to compete for land resources with property developers, but the datacenter strategy should not be seen solely as an ICT project. Datacenters represent an important capacity for Hong Kong’s future economic development. What we need now is land allocation as well as policies to support Hong Kong’s transition into a world-class knowledge economy.

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