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?

harris_moore09

Anthony_wong

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

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