HONG KONG, Sept. 17, 2012 /PRNewswire/ -- Cushman & Wakefield, the world's largest privately owned real estate services firm, has joined hands with Hurleypalmerflatt, the leading engineering consulting company, to release the 2012 Data Centre Risk Index. The survey covers 30 countries and regions globally, up from 20 last year. At the top of the ranking was USA again in first, followed by UK in second, up from the fifth position in 2011. Hong Kong is ranked seventh, the highest ranking in the Asia Pacific region. In contrast, Singapore, its closest rival, ranked seventeenth, down six spots as compared to last year.
Cushman & Wakefield and Hurleypalmerflatt carried out a comprehensive risk evaluation on 30 countries and regions based on 11 factors which the operation of data centres relies on, including: energy costs, internet band-width, ease of operation, corporate tax rates, labour costs, political stability, sustainability, natural hazards, GDP, inflation and water resources.
Hong Kong still has the leading edge for setting up data centres
John Siu, Executive Director, Cushman & Wakefield Hong Kong, believes that Hong Kong is still the most ideal location for data centres in the Asia Pacific region, thanks to the following factors:
Mr. Siu added, regarding demand for data centres, as a regional financial centre in the Asia Pacific region, Hong Kong serves as a springboard for institutions and multinationals entering the mainland Chinese market. For safety reasons, multinational financial institutions usually locate their data centres and regional headquarters in the same city. Some even set up two data centres in two countries within the region. This explains why demand for data centres in Hong Kong is continually increasing.
Additionally, telecom companies tend to set up data centres in Hong Kong. After Google's announcement that it will establish its first Asian Pacific data centre in the Tseung Kwan O Industrial Area, China Mobile also announced its own data centre project in Tseung Kwan O in order to boost the speed and capacity of its network. These are clear indicators of Hong Kong recently seeing tremendous data centre demand from telecom companies.
Insufficient sites for data centres
According to HKSAR Government's figures, Hong Kong needs an extra 10 hectares of land for data centres. However, the current land available for data centres is only 1 hectare. The government has announced initiatives to encourage development of data centres, such as waiving fees of converting industrial buildings or warehouses aged 15 years or more into data centres, and allowing industrial sites to accommodate high-tier data centres. However, these measures are not sufficient to ease the shortage in the short term. Mr. Siu suggested the government launch more sites specifically for data centre use. Apart from expanding the Tseung Kwan O Industrial Area, the government could consider putting land plots on Hong Kong Island, in Sha Tin, Tai Po, Kwai Chung, Tsing Yi and Tsuen Wan up for sale, so that the industry can diversify locations of data centres and mitigate the risks involved.
About Cushman & Wakefield
Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world's major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 235 offices in 60 countries and more than 14,000 employees. It offers a complete range of services for all property types, fully-integrated on a global basis, including leasing, sales and acquisitions, debt and equity financing, investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $5.5 billion in assets under management through its wholly-owned subsidiary Cushman & Wakefield Investors. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge. In China, Cushman & Wakefield maintains six market-leading offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen and Hong Kong. More information is available at www.cushmanwakefield.com.
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