Chinese tech firms, from Bytedance to artificial intelligence startups, are driving demand for Hong Kong¡¯s data centers, helping push lease prices up by nearly double this year.
The AI boom, fueled in part by the success of DeepSeek, has prompted more Chinese firms to use Hong Kong as a springboard to test models and expand overseas. Deals for digital infrastructure accelerated in the last quarter, driving up prices for data center capacity on a per-kilowatt basis, according to Structure Research, a data center consultancy.
Chinese ¡°hyperscalers,¡± including Alibaba Group Holding and Tencent Holdings, are increasing their capacity in the city, said Jason Zhou, senior analyst with the research firm. Some Chinese independent boutique AI firms are also entering the market to expand their overseas presence, he added.
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