AI Boom Nearly Doubles Hong Kong Data Center Leasing Prices; Chinese Firms Take 90% of Deals

The mainland China artificial intelligence boom continues to drive demand for Hong Kong data centers, with leasing prices nearly doubling in 2026. Data from the consultancy Structure Research shows that the pace of digital infrastructure transactions in Hong Kong accelerated significantly in the latest quarter, directly pushing up unit prices per kilowatt. Wholesale unit prices have reached US$180 per kilowatt, with wholesale prices for hyperscale data center vendors surging 90% since the start of the year, making Hong Kong one of the fastest-appreciating markets in Asia.

Mainland Chinese technology companies are accelerating their deployment of computing capacity in Hong Kong. Hyperscale cloud providers such as Alibaba and Tencent continue to expand their computing capacity in the city, while several independent artificial intelligence startups have also entered the market. Roughly 90% of recent data center leasing transactions in Hong Kong came from Chinese enterprises, with the remaining 10% from Western companies. Compared with the relatively modest computing requirements of traditional cloud services, the large-scale adoption of artificial intelligence has significantly raised technology companies' demand for computing capacity. Chinese enterprises show a clear preference for deploying inference AI in Hong Kong.

Hong Kong offers advantages that mainland China cannot easily replicate, including free data flow and direct access to international markets. For technology companies in a high-growth phase, Hong Kong can serve as a testing ground for training artificial intelligence and competing internationally, allowing firms to trial and observe relevant capabilities before a full-scale overseas expansion. Financial institutions remain a key source of demand for Hong Kong's digital infrastructure, with low-latency requirements making the city's proximity to major markets such as Singapore and Tokyo a significant advantage.

The artificial intelligence boom has spurred expansion among major data center operators. Sunevision, DayOne Data Centers, and Equinix are raising billions of US dollars in debt financing to support their expansion plans.