Goodman Group Leads US$2.7B Data Centre Push to Power AI Growth in Hong Kong

Image Credit: Adrien | Splash

Australia’s Goodman Group has formed a US$2.7 billion investment consortium to develop data centres in Hong Kong, driven by surging demand for artificial intelligence infrastructure, the company announced on Friday. The move positions Hong Kong as a pivotal hub for Asia’s AI-driven digital economy.

The Venture

Goodman Group, a global industrial property developer, has partnered with Dutch pension funds PGGM and APG, Canada Pension Plan Investment Board (CPP Investments), CBRE Investment Management’s Indirect Private Real Estate Strategies, and an undisclosed Middle Eastern investor. Goodman holds a 20% stake in the Goodman Hong Kong Data Centre Partnership (GHKDC), which manages four stabilized data centres and two under development, totaling 325 megavolt-amperes (MVA) of power capacity—approximately 30% of Hong Kong’s data centre market for the partnership’s assets. Goodman’s total Hong Kong portfolio will reach 392MW by 2026. Key projects include a 50MW data centre at the former Texaco Centre in Tsuen Wan, set for completion by mid-2026, and another 50MW facility under construction.

AI Boom Fuels Data Centre Expansion

Hong Kong’s proximity to mainland China’s tech hubs, like Shenzhen, makes it ideal for low-latency AI data storage. CEO Greg Goodman told Reuters, “There’s a lot of inquiry now coming out of China... you’ve seen a big push in artificial intelligence in China”. China’s US$15 billion AI infrastructure investment by 2025 drives demand, with GDS Holdings’ international arm, DayOne, leasing Goodman’s facilities to support AI workloads. Hong Kong’s government is also promoting AI for applications like disaster and energy monitoring, further boosting local demand.

Funding and Global Strategy for AI Infrastructure

The consortium builds on Goodman’s AU$4 billion (US$2.54 billion) share placement in February 2025 to fund its global data centre growth, including a Japanese partnership projected to reach US$1.1 billion in assets by late 2025. Goodman’s Asian portfolio includes 1.8GW of power capacity, with 392MW in Hong Kong by 2026. Long-term leases with tenants like GDS ensure stable cash flows for AI infrastructure projects.

Risks in Hong Kong’s AI Data Centre Market

The GHKDC leverages Hong Kong’s strategic location and Goodman’s market leadership, with institutional backing ensuring scalability for AI-driven demand. However, the Asia-Pacific data centre industry faces a shortage of skilled engineers, which could delay projects, alongside geopolitical and regulatory uncertainties in Hong Kong that may impact investment stability.

Future of AI-Driven Data Centres in Asia-Pacific

The Asia-Pacific data centre market is projected to reach US$150.59 billion by 2029, driven by AI and cloud computing. Hong Kong’s role as a connectivity bridge for hyperscalers and colocation providers positions it for growth, but competition for power and skilled labor poses challenges. Goodman’s focus on sustainable, high-capacity facilities, like the LEED-Gold pre-certified Tsuen Wan West campus, aligns with the region’s AI infrastructure needs.

License This Article

Source: MingTianDi, Communications Today, Reuters, Data Centre Magazine

$5.00

$10.00

$20.00

$30.00

Custom Amount

Please enter an amount

$

One-Time Donation Monthly Donation Quarterly Donation Annual Donation

3% Cover the Fee

Support us to keep delivering insightful content on AI development. Your contribution fuels our mission to inspire and inform! Support us to keep delivering insightful content on AI development. Your contribution fuels our mission to inspire and inform!