Data Centre Development in Hong Kong
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Data Centre Development in Hong Kong
  
Using Industrial Buildings/Lots for Data Centre Development
Using Industrial Buildings/Lots for Data Centre Development

Waiver for Data Centre Use in Part1 of an Industrial Building

Building owners of an industrial building, located in "Industrial", "Commercial" or "Other Specified Uses (Business)" zones, may apply for a special waiver for changing parts of eligible industrial buildings into data centre use at nil waiver fee. Please refer to the Lands Department Practice Note No.3/2012, No. 3/2012A and No. 3/2012B for details.

In 2016, the Lands Department together with the Office of the Government Chief Information Officer have streamlined the procedures for issuing waivers for change of use of industrial buildings under the measure mentioned above, aiming to approve new applications within a much shortened time frame.

  1. This does not preclude change in use of an entire industrial building into data centre use for the life-time of the existing building.

Lease Modification for Development of High-tier Data Centre on an Industrial Lot

For development of high-tier data centres on industrial lots through lease modification, the premium will be assessed on the basis of actual development intensity and high-tier data centre use. Please refer to the Lands Department Practice Note No. 3/2012, No. 3/2012A and No. 3/2012B for details.

IB Measure

Summary of Data Centre Facilitation Measures In Relation to Industrial Buildings and Industrial Lots as stipulated in the Lands Department Practice Notes

A summary of the arrangements, eligibility criteria and approval conditions for the measures stipulated in the Lands Department’s Practice Note No. 3/2012 , No. 3/2012A and No. 3/2012B is as follows -

Waiver for Data Centre Use in Part of an Industrial Building
Practice Note (No. 3/2012, No. 3/2012A and No. 3/2012B)
Lease Modification for Development of High-tier Data Centre on an Industrial Lot
Practice Note (No. 3/2012, No. 3/2012A and No. 3/2012B)

(A) Arrangement

  • Nil waiver fee for changing parts of an industrial building to data centre use.
  • Premium for the data centre part will be assessed on the basis of high-tier data centre use and actual development intensity, instead of optimal use and maximum development intensity.
  • Premium for the non-data centre part, if any, will be assessed according to established practice.

(B) Eligibility Criteria and Approval Conditions

  • The proposed data centre use must be in part of an industrial buildings aged 15 years or more (calculated from date of the last-issued occupation permit)
  • The proposed data centre use must be located in an industrial building situated in "Industrial", "Commercial" or "Other Specified Uses" annotated "Business" zones.
  • The development must be on an industrial lot.
  • The part of the industrial building covered by the waiver for data centre use must be used as data centre during the validity of the waiver.
  • The data centre part of the development is presumed to be for high-tier data centre use.
  • Any building works must be completed within three years upon execution of the waiver.
  • The data centre part of the development should not be less than (i) 40% of the applicable maximum permissible development intensity; or (ii) a plot ratio of 2.5, whichever is higher.
  • The area for ancillary office is limited to 30% of the total usable floor area of the data centre part.

Applicants to apply for the concessionary scheme should submit an energy saving plan together with their applications. Please refer to a sample of the energy saving plan for adopting the Green Data Centres Practice Guide.

For application details, please refer to the appropriate Practice Notes and engage relevant professionals to assist in the application process.