What are the requirements to convert an industrial building to a data centre usage in Hong Kong? How many potential buildings are there in Hong Kong that can be converted? Also, what is the typical cost per square foot to do such covert?



  • What are the requirements to convert an industrial building to a data centre usage in Hong Kong? How many potential buildings are there in Hong Kong that can be converted? Also, what is the typical cost per square foot to do such covert?



  • There are typically 3 pathways

    Probably easiest one Wholesale conversion –

    Wholesale conversion –change in use of parts of existing industrial buildings

    No fee for waiving any conditions through the change of use
    The data centreconversion must take place in an existing industrial building which is 15 years or older
    The proposed building must be in
    −Industrial (I),
    –Commercial (C) or
    –Other Specified Uses (Business) (OUB) zones

    Land acquisition –government land sales for data centres
    Acquire government sites from land sale programmethat are allowed to be developed for data centreuse

    Lease modification –redevelopment to high-tier data centres

    The data centreportion of the redevelopment should be at least:
    –40% of the maximum permissible development GFA or,
    –a plot ratio of 2.5, whichever is higher
    Land premium* assessed based on high-tier data centreuse for the data centreportion
    The redevelopment must take place on an Industriallot

    Sometimes it’s good to supplement expert advice with your own research as well. Recently I did an episode with Denzity on how you can do real estate research like a pro. You can check it out here: https://youtu.be/ZHzeYX_6sjk


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