Concessionary Measures

Waiver for Data Centre Use in Part 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. 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 Lands Administration Office (LAO) Practice Note No.3/2012, No. 3/2012A and No. 3/2012B for details.

  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 LAO Practice Note No. 3/2012, No. 3/2012A and No. 3/2012B for details.

Change Parts of an Industrial Building to
Data Centre Use
  • Exempt waiver fee
  • For all tiers of data centres
  • Buildings aged 15 years or above
  • In "I", "OU(B)", "C" zones
Redevelopment - Lease Modification
High-tier Data Centre Use
Data Centres Use
  • Premium based on actual development intensity and actual (vs optimal) use
  • For high-tier data centres
  • Reach at least 40% of maximum development intensity or plot ratio of 2.5 (whichever is higher)
Other Permitted Use
  • Premium based on optimal use

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

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

Waiver for Data Centre Use in Part 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. of an Industrial Building
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.
(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 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.
  • Any building works must be completed within three years upon execution of the waiver.
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
  • 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 development must be on an industrial lot.
  • The data centre part of the development is presumed to be for high-tier data centre use.
  • 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.