ESR Cayman buys property in Hong Kong for data centre development
APAC-focused logistics asset firm ESR Cayman has made its first real estate purchase in the island of Hong Kong for the development of a data centre.
ESR has acquired land in Kwai Chung, situated in the New Territories of Hong Kong, which is the island city’s major data centre cluster.
Further, ESR Cayman plans to work with its capital partners and operators to convert the land into a 40 megawatt (MW) data centre costing approximately $675 million.
Co-founders and co-CEOs Jeffrey Shen and Stuart Gibson said in a press release that the move forms a part of the company’s data centre expansion efforts.
“Hong Kong is an important data centre market in the APAC region with its low electricity costs, limited climate risks and established network capability,” Shen and Gibson pointed out.
“Entering the Hong Kong market is a key expansion strategy as we continue to build our integrated digital and logistics supply chain infrastructure platform to help fuel the new economy in APAC,” they added.
ESR’s latest purchase Hong Kong comes swiftly after the company’s acquisition of a data centre campus in Osaka, Japan in April, which it will further develop for $2.15 billion.
Josh Daitch, ESR Group Head of Fund Management & Capital, and Rui Hua Chang, ESR Group Managing Director, Capital Markets & Investor Relations, described the company’s foray into the Hong Kong data centre market as a “rare brownfield opportunity.”
“Set in one of the ideal locations for data centres and coupled with its meaningful scale, we are confident that the converted asset will be well positioned to provide customers with scalable and flexible solutions while creating long-term values for investors,” they continued.
With both developments combined, ESR Cayman expects to potentially generate up to 250 MW of data centre power across the Asia-Pacific region.