ESR has entered Hong Kong’s data centre market with the acquisition of a facility in Kwai Chung to redevelop into a US$675m (€562m) asset.

Jeffrey Shen and Stuart Gibson, ESR co-founders and co- CEOs, said Hong Kong was an important data centre market in the APAC region, with its low electricity costs, limited climate risks and established network capability.

“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 said.

The newly acquired data centre was a brownfield asset and offered the opportunity to scale up its capacity, ESR added.

ESR plans to work with capital partners and operators to convert the building into a data centre with a facility load of 40MW.

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