SUNeVision Holdings Ltd. (SUNeVision), the largest data centre provider in Hong Kong has won the tender for a site in Chung Hom Kok, which will be used to develop a second landing station for international submarine cables.

This will follow its first landing station, “HKIS-1”, which was launched last year, the company said in a statement. The addition of cable landing stations to its data centre portfolio will further strengthen SUNeVision’s position as the leading connectivity hub in Asia.

The tender site refers to the plot Rural Building Lot No. 1219 at Chung Hom Kok, Hong Kong. It has a site area of about 2,254 square metres and is on a 30-year land grant. HKIS-1, launched in 2021 and located nearby, is of similar scale. The two neighbouring sites will offer path diversity and expansion capacities for upcoming new submarine cable growth. Raymond Tong, Chief Executive Officer, SUNeVision said:

Hong Kong is an international business and ICT hub in Asia given its strategic location and business environment. As demand for connectivity continues to grow globally due to skyrocketing data usage, the data centre outlook in Hong Kong is optimistic. Our investment in new site demonstrates that we are positive and confident about Hong Kong’s outlook in long term. Our expansion from data centre provider to owning cable landing stations would further strengthen our one-stop-shop connectivity for data businesses in Hong Kong, mainland China and the rest of the world.

Unprecedented international subsea capacity demand

Global data traffic continues to grow at an unprecedented rate, to 4.8ZB per year, by 20221. Asia has experienced one of the highest demand growth in international bandwidth, growing at a CAGR of over 40 per cent between 2017 and 2021. International subsea cables today collectively drive 99% of the intercontinental traffic, functioning as the most critical backbone for global connectivity. Cable landing stations serve as an important infrastructure linking each of the cities along which the cable systems route.

Hong Kong, an Asia hub & China Gateway

Located in the center of Asia, Hong Kong is one of the most important regional data transit hubs and international gateway to/from mainland China. Hong Kong continued to rank Top 10 globally by data capacity, due to its geographic advantages and well-established global interconnection infrastructure.

Industry watchers opine that SUNeVision’s MEGA-i in Hong Kong is the most carrier-dense colocation site in the world, enabling customers to interconnect to more than 200 connectivity partners who have physically established its points-of-presence (PoPs) in SUNeVision’s colocation facilities.

Currently, 9 out of 11 City PoPs of international submarine cables landed in Hong Kong are located in SUNeVision’s MEGA-i.

In 2022, Hong Kong made a big jump and moved into the top 10 list, according to a report by Cushman & Wakefield. Now it is the third most attractive location for data centres in the Asia-Pacific region, behind Singapore and Sydney. Since its development in 2000, data centres have occupied 8 million square feet in the private market.