What Changed
- Hong Kong's computing capacity stands at 5 000 PFLOPS, with Cyberport's AISC at over 90 per cent utilization.
- Sandy Ridge Data Facility Cluster construction has begun, targeting 2027 for phase one and 2032 for full capacity of 180 000 PFLOPS.
- The Government confirmed that dedicated water supply corridors from the Mainland are unnecessary, while cross-boundary data flows are supported by GBA Standard Contracts.
On October 14, 2026, the Secretary for Innovation, Technology and Industry of the Hong Kong Special Administrative Region (HKSAR), Professor Sun Dong, provided a detailed written response to a question raised by Legislative Council member Hon Elizabeth Quat regarding the development of Hong Kong's intelligent computing industry. The First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030) identifies artificial intelligence (AI) as a crucial industry for the future economic development of the territory. The official response, prepared in consultation with the Development Bureau, the Environment and Ecology Bureau, and the Financial Services and the Treasury Bureau, outlines current capacity, planned infrastructure additions, cross-boundary collaboration frameworks, and utility considerations.
Current Infrastructure and Incremental Capacity Strategy:
Hong Kong's overall computing power currently stands at 5 000 peta floating-point operations per second (PFLOPS). Of this total, Cyberport's Artificial Intelligence Supercomputing Centre (AISC) accounts for 3 000 PFLOPS. Driven by strong market demand for AI computing services, the utilization rate of the AISC has exceeded 90 per cent. To address existing demand and build sustainable infrastructure, the HKSAR Government is deploying a phased strategy:
- Short-term measures: The Government is utilizing existing infrastructure and the Artificial Intelligence Subsidy Scheme (AISS) to support local research institutes, universities, and commercial enterprises. The Committee of the AISS will review resource allocation and usage duration based on project needs and overall facility utilization. Concurrently, Cyberport is reviewing service capacity and evaluating options to expand AISC computing power.
- Medium-term measures: Construction of the Sandy Ridge Data Facility Cluster has already commenced. Designed as a regional cluster for advanced data centres and related technology industries, the facility is scheduled to begin its first phase of operations in 2027. It is projected to become fully operational in or before 2032, providing 180 000 PFLOPS of computing capacity.
- Long-term measures: The Government is preparing to commission a new consultancy study on computing power to analyze long-term demand trends. This study will be guided by three core principles: high-efficiency computing power, stable electricity supply, and low-carbon transition, aiming to optimize data centre operations and overall spatial layout.
Trading Mechanisms and Cross-Boundary GBA Integration:
In response to inquiries regarding the development of a "computing power exchange" and mechanisms for tokenized AI services ("tokens going global"), the Government noted that while Hong Kong possesses structural strengths to support trading and export of AI services, its immediate priority remains building underlying infrastructure. Establishing a financial product ecosystem—comprising trading, settlement, and price discovery mechanisms—requires a mature underlying market and ecosystem foundation.
Regarding regional cooperation, Hong Kong aims to maintain its roles as a "super connector" and "super value-adder" within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). The Government encourages operators of computing power facilities in the GBA to provide services to Hong Kong enterprises according to market demand.
For cross-boundary AI and computing services, development must comply with personal data protection laws, cybersecurity regulations, data flow rules, and applicable legal standards. The Innovation, Technology and Industry Bureau is facilitating cross-boundary data flows through specific mechanisms:
1. The Standard Contract for the Cross-boundary Flow of Personal Information within the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland, Hong Kong); and
2. Measures promoting the secure transfer of Mainland scientific research data to the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone.
Utilities and Resource Allocation:
Addressing concerns regarding the high water and electricity consumption of data centres, the Government reviewed infrastructure capacity in the Northern Metropolis (NM), where high-consumption industries are focused in San Tin, Sandy Ridge, and Hung Shui Kiu/Ha Tsuen.
- Water Supply: A preliminary assessment by the Water Supplies Department (WSD) indicates that the area maintains sufficient supplies of fresh water and recycled water for planned developments. The Government encourages adoption of water-saving technologies and appropriate allocation of fresh and recycled water for cooling. WSD will upgrade infrastructure as necessary, but a dedicated water supply corridor or quota from Dongjiang is deemed unnecessary at this stage.
- Electricity Supply: Under the Scheme of Control Agreements, power companies must maintain adequate facilities. CLP Power Hong Kong Limited has undertaken planning and construction work to satisfy electricity demand for the innovation and technology (I&T) sector and data centres.
Frequently Asked Questions:
Q1: What is the current total computing capacity in Hong Kong, and how much is contributed by Cyberport?
A1: Hong Kong's total computing power stands at 5 000 PFLOPS, with Cyberport's Artificial Intelligence Supercomputing Centre (AISC) contributing 3 000 PFLOPS. The AISC utilization rate currently exceeds 90 per cent.
Q2: When will the Sandy Ridge Data Facility Cluster open, and what capacity will it deliver?
A2: The first phase of operations is expected to commence in 2027, with full operation targeted in or before 2032. Once fully operational, it will deliver 180 000 PFLOPS of computing power.
Q3: Is the HKSAR Government establishing a dedicated water supply corridor from Mainland China for data centre cooling?
A3: No. Preliminary assessments by the Water Supplies Department show sufficient fresh and recycled water supplies in the Northern Metropolis, making a dedicated water supply corridor or quota unnecessary at this stage.
Q4: What regulatory frameworks govern cross-boundary data transfers between Mainland China and Hong Kong for AI?
A4: Transfers must comply with applicable personal data protection laws, cybersecurity requirements, and data flow regulations. Specific facilitation measures include the Standard Contract for Cross-boundary Flow of Personal Information within the GBA and arrangements for moving scientific research data to the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone.
Who May Be Affected
AI developers, research institutes, universities, data centre operators, and technology enterprises in Hong Kong SAR and the Guangdong-Hong Kong-Macao Greater Bay Area.
Cross-Border Context
Connects Hong Kong SAR with Mainland China through GBA data flow contracts, regional computing service cooperation, and the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone.
What to check next
- Track the execution and phase one launch of the Sandy Ridge Data Facility Cluster in 2027.
- Monitor the commissioning and scope of the planned consultancy study on long-term computing power demand.
- Follow updates on the application of the GBA Standard Contract for Personal Information in cross-boundary AI services.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.