Hong Kong’s Sandy Ridge Data Facility Cluster in the Northern Metropolis is expected to begin phased operations in mid-2027, earlier than previously planned, as the city steps up efforts to strengthen its computing infrastructure for artificial intelligence, industrial innovation and digital transformation.

CLP Power Hong Kong Ltd and Hong Kong Range Intelligent Computing Technology Co Ltd said on Wednesday they are jointly developing the project. Range will be responsible for investment, construction and operations, while CLP Power will provide electricity support.

Acting Secretary for Innovation, Technology and Industry Lillian Cheong Man-lei said high-quality computing infrastructure will be central to Hong Kong’s ambition to make AI a key industry for future growth.

“We are confident that the project can be brought forward substantially from the original target of 2029 to next year,” she said. “That means the first phase can be completed and begin operations within about a year after the tender is awarded, and the land is granted.”

Cheong said the cluster is expected to provide 180,000 peta-floating point operations per second of computing power by around 2030, 36 times Hong Kong’s current level. Total investment in the project will exceed HK$23.8 billion ($3.03 billion), while the first three years of operation are projected to generate about HK$4.6 billion in economic output.

She said the Hong Kong Special Administrative Region government is conducting a new round of studies to assess the future demand for computing power and the industrial and economic growth it could support, including the possibility of further expanding the Sandy Ridge site.

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The HKSAR government is also studying power usage effectiveness (PUE) suited to Hong Kong’s conditions, Cheong added. It plans to issue PUE guidelines setting standards for existing and new data centers, with the aim of improving energy efficiency and supporting the sustainable development of the city’s intelligent computing sector.

CLP Holdings CEO Chiang Tung-keung said Sandy Ridge will provide strong computing support for Hong Kong’s AI industry through coordinated planning of power and computing infrastructure.

“Through our short-, medium- and long-term development plans, we will have sufficient capacity over the next decade to support electricity demand equivalent to three to four data facility clusters of Sandy Ridge’s scale,” Chiang said.

CLP Power Hong Kong Managing Director Joseph Law Ka-chun said the Hong Kong SAR’s electricity charges are globally competitive and lower than those in Tokyo, Singapore and Sydney. When choosing a location for computing facilities, operators consider factors such as power reliability, data transmission latency and capital mobility, making Hong Kong a highly attractive destination, he said.

“The Hong Kong SAR has a unique strategic role as a bridge between the country and international markets, and as a platform for deepening global innovation cooperation,” said Zhou Chaonan, chairwoman of Range Intelligent Computing Technology Group Co Ltd.

The group hopes to leverage Hong Kong’s role as a gateway connecting the Chinese mainland and the world to promote stronger links between national and global innovation resources and markets, Zhou added.

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In the city’s First Five-Year Plan for Economic and Social Development (2026-2030), the HKSAR government said it will promote AI as a core industry for Hong Kong’s future development and empower different sectors of the economy through AI technology.

According to the blueprint, Hong Kong will “enhance the layout of computing infrastructure at full steam” to empower development, and provide strong support for the computing power required to develop the AI industry through the development of the Sandy Ridge Data Facility Cluster.

Contact the writer at irisli@chinadailyhk.com