SUNeVision Holdings Ltd., the technology arm of Sun Hung Kai Properties Ltd. and the largest data centre provider in Hong Kong, posted strong revenue growth on the back of uptick in its data center business.
For the year ended 30 June 2022, SUNeVision’s revenue increased 11% year on year to HK$2,086 million, of which revenue from data centre business grew 11% to HK$1,940 million, driven largely by the demand for the Group’s existing data centres from both existing and new customers. EBITDA rose 10% (or 11% excluding the Covid-19 related subsidies) year on year to HK$1,501 million, the company said.
Profit attributable to owners of the company increased 8% (or 9% if excluding the Covid-19 related subsidies) year on year to HK$847 million. Raymond Tong, Chief Executive Officer of SUNeVision, said:
“The digitalisation for businesses and consumers continues to accelerate. The demand for ‘connectivity’ capacity continued to be resilient as the usage of online applications such as video conferencing, e-commerce, streaming and gaming maintained at a high level. The demand for ‘hyperscale’ capacity also remained strong, with nearly all of our cloud customers expanding their capacity in our facilities. As one of the highest quality data centre operators in Hong Kong, we believe our existing and upcoming facilities will continue to serve our customers well.”
The Group has a very robust pipeline for growth. MEGA Fanling, the Group’s eighth data centre announced in July 2021, began operations in June 2022. Utilising an asset-light model, SUNeVision has achieved a short time-to-market cycle of less than 12 months.
MEGA Gateway, SUNeVision’s greenfield project in Tsuen Wan, is in its final stage of construction and will be operational in the second half of 2022. Customer’s interest in MEGA Gateway is strong and the Group has already achieved 60% pre-commitments from several major customers and is making good progress on pre-commitment discussions with other customers, the company said.
MEGA IDC, SUNeVision’s flagship greenfield project in Tseung Kwan O, is built on a site dedicated to data centre development and is free from any subletting restrictions in the nearby industrial estate. With a superior infrastructure, MEGA IDC will have the largest power capacity in a single data centre site in Hong Kong, the company said.
Phase 1 of MEGA IDC, consisting of approximately 500,000 square feet GFA, is targeted to open in the first half of 2023, and there is strong interest from customers. The current target opening for phase 2, consisting of approximately 700,000 square feet GFA, is set for 2026.
Upon completion of these projects, the total gross floor area of the Group’s data centres in Hong Kong will grow from the current 1.5 million square feet (including MEGA Fanling) to almost 3 million square feet. SUNeVision’s power capacity will increase from the current 80MW (including MEGA Fanling) to over 280MW to meet the increasing customer demand.
The Group has won the tender for a site at Chung Hom Kok to develop a second landing station for international submarine cables. This will complement the first landing station, “HKIS-1”, which was launched last year and has received strong interest from multiple regional and international cable operators. The addition of cable landing stations to the data centre portfolio will further strengthen the Group’s position as the leading connectivity hub in Asia.