Land Exchange of iTech 3, Fanling

20 Oct 2023

We’re thrilled to share some incredible developments in our journey at iTech Tower 3 greenfield data centre project.

In mid-2020, we invested 356 million Hong Kong dollars in acquiring two prime properties located at No. 3 On Kui Street and No. 8 On Chuen Street, Fanling, for the purpose of developing a state-of-the-art data center facility.

Lately, we have completed the land conversion process by making the land premium payment of 467.8 million Hong Kong dollars in total for the two sites. By simple calculation, the land premium translates to approximately HK$2,500 per square footage on floor area. This reaffirms the path of such strategic plan and represent the immense potential of this project.

“There is a consistent demand for data centres in the market. Typically, data centre developers retrofit existing industrial buildings to accommodate data centres. However, this traditional approach is often constrained by the limitations of infrastructure and power supply of industrial buildings. It is important to note that most leases governing industrial building lots contain restrictions on land use and other requirements, requiring owners to seek lease modifications or temporary waivers to develop data centres. Developers are now exploring alternate approaches, including setting up data centres on virgin land which equally unlock the land value.

Data centres on virgin land are gaining traction as a compelling solution to meet the growing demands of the digital age. Unlike the limitations imposed by retrofitting existing structures in industrial zones, selecting virgin land for data centre development provides a remarkable opportunity to implement sustainable practices and tailor-made designs from the initial project planning stage. The flexibility of building on virgin land also extends to the layout and infrastructure of the data centre.”   

Alnwick Chan, Managing Director, Professional Services, Knight Frank

“As businesses continue to digitize their operations and data-driven applications demand soars, the role of data centers becomes increasingly crucial. iTech Tower 3 as the first greenfield data centre development in the district, signifying a successful transformation in land use. The state-of-the-art facility embracing advanced technology and sustainability practices will reshape Fanling’s digital landscape.”  

Herbert Chan, Director, iTech Towers Data Centre Services Ltd.