Hong Kong Awards Sha Ling Data Park Development Contract

The Hong Kong government has announced the results of the tender for the Sha Ling Data Park, covering an area of over 110,000 square meters. The contract has been awarded to Hong Kong Runjiang Zhishuan Technology Co., Ltd., which will develop the site into an advanced data center and related industry park with a lease term of 50 years. According to RTHK, the parent companies of the winning bidder are Hong Kong Runfeng Zhishuan Technology Development Co., Ltd. and Sengoku (Hong Kong) Technology Co., Ltd., with the ultimate holding company being Runze Zhishuan Technology Group Co., Ltd. Sun Dong, Secretary for Innovation, Technology and Industry, stated that the company has extensive experience in developing high-end data centers, having established and operated such facilities in various cities across mainland China. The bid price for the tender was HK$581 million. The tender evaluation was conducted using a "dual-envelope system," requiring compliance with both non-price and price terms. Sun Dong highlighted several commitments made by the bidder in their non-price proposal, including the expectation to commence operations within 42 months, an investment scale of HK$23.8 billion in the first three years from development to operation, and an estimated economic output of HK$4.6 billion. The project is expected to create approximately 180 technical positions. By 2032, the data park is anticipated to provide 180,000 teraflops of computing power, equivalent to 36 times the current computing capacity in Hong Kong. Sun Dong described the project as a new milestone in Hong Kong's artificial intelligence development, demonstrating the industry's trust in the Northern Metropolis development with tangible investments. He believes the Sha Ling Data Park will offer advanced computing facilities to Hong Kong and surrounding regions, fostering the growth of data and AI-related industries and helping establish Hong Kong as a regional hub for advanced data computing power. The government will strictly monitor the project's progress according to the service contract to ensure the bidder fulfills their commitments on time and with quality. Permanent Secretary for Innovation, Technology and Industry, Chai Kit-ming, noted that although only one bid was received, it underwent rigorous evaluation, and the involved company is deemed capable and qualified. After the land is awarded, the company will establish a service contract with the government and provide a guarantee of over HK$400 million. Chai Kit-ming also mentioned that the land is quite large with several slopes, and the winning bid exceeded the land's reserve price, benefiting public funds and demonstrating the company's confidence in the Hong Kong market. Considering the parent company's substantial experience in mainland China, with 20 projects already completed, the decision was made.