Data Centre Site Selection & Space Sourcing in Hong Kong

Data centre property requirements are different

A conventional industrial property search is not enough. A data centre must be screened as an operating system made up of power, structure, cooling, access, security, permitted use and long-term commercial control.

Floor area and asking rent can identify an initial pool, but they do not establish technical or operational suitability. Electrical capacity may be constrained by the incoming supply, transformer and substation arrangement, existing occupier commitments, or the ability to reinforce the supply. A building may also lack practical space for UPS equipment, batteries, switchgear, mechanical plant or secure circulation.

Early property screening helps remove unsuitable buildings before the occupier commits substantial resources to detailed engineering due diligence and lease negotiation. Noosphere acts as a property adviser in this process. Electrical, structural, cooling, fire, planning and legal conclusions should be verified by the relevant engineers, consultants, utility providers, landlord and authorities.

• Electrical capacity and realistic expansion potential
• Building configuration, floor loading and plant areas
• Cooling and heat-rejection options
• Loading, goods lifts, security and 24-hour access
• Planning and permitted-use considerations
• Lease tenure, alteration rights and landlord cooperation

How much space does a data centre require?

There is no universal floor-area ratio. The requirement depends on rack count, rack density, IT load, cooling design, redundancy, UPS and batteries, electrical rooms, mechanical plant, circulation and support areas.

The net data hall area is the area allocated to racks and their immediate operational clearances. Total building or facility area is broader: it may include electrical rooms, UPS and battery rooms, cooling plant, fire services, security, loading, offices, storage, circulation, risers and other support functions.

A property brief should therefore state both the intended net data hall area and the total facility area, together with phasing and expansion assumptions. Treating the data hall as the whole requirement can lead to a building that appears large enough but cannot accommodate the infrastructure around it.

How much power does a data centre need?

IT load is not automatically equal to total building electrical demand. A stated 4MW or 8MW IT load must be assessed alongside cooling, UPS losses, pumps, fans, lighting, ancillary systems and the chosen redundancy strategy.

Power discussions should distinguish between IT load, incoming building supply, usable capacity and future expandable capacity. PUE can help describe the relationship between total facility energy and IT equipment energy, but no universal PUE should be assumed at the property-screening stage.

The practical question is not simply whether a brochure mentions a large electrical figure. It is whether the supply, infrastructure, space, programme and commercial responsibility for obtaining additional capacity can support the proposed operating model.

Rack density and property selection

A simple first-pass estimate is rack count multiplied by average kW per rack. For example, 800 racks × 10kW equals approximately 8MW of IT load.

This is a simplified illustration, not a calculation of total facility electrical demand. Rack density can influence floor loading, cooling architecture, containment, electrical distribution and the amount of non-data-hall space required. The actual brief should define average and peak density, growth assumptions and redundancy with the operator’s technical advisers.

Existing electrical capacity versus expandable capacity

A property search should investigate current supply and future supply as separate questions. A statement such as “630A/TPN per floor” alone does not establish that a building can support a multi-megawatt data centre.

Noosphere’s property screening should seek clarity on the following points before treating a building as viable:

The answers may require landlord records, utility-provider engagement and technical review. They should not be inferred from a marketing schedule or from the rating of one distribution board.

• Current electrical supply to the property
• Existing allocated capacity by floor or unit
• Current tenant consumption and commitments
• Spare capacity within existing infrastructure
• Transformer and substation configuration
• Potential additional supply and the application route
• Space required for additional electrical infrastructure
• Whether utility-provider reinforcement may be required
• Estimated programme for additional supply
• Who bears infrastructure upgrade costs

Understanding A/TPN and MW

For three-phase electricity, amperage cannot be accurately converted into MW without knowing voltage and power factor.

A simplified three-phase relationship is P = √3 × V × I × power factor, where P is real power in watts, V is line-to-line voltage and I is current in amperes. The result must also be interpreted in the context of the actual supply arrangement, equipment ratings and redundancy.

A/TPN generally describes an amperage rating for a three-phase, four-wire system with a neutral. It is useful information, but it is not by itself a statement of available megawatts, spare capacity or deliverable IT load. Property professionals should use it as a prompt for further technical confirmation.

What should be confirmed with the landlord?

The landlord information request should cover the building’s existing infrastructure, expansion rights and the practical ability to install and operate equipment.

Floor loading, cooling and heat rejection

A viable data centre property needs both structural capacity and a credible cooling strategy. Neither should be assumed from floor area or electrical capacity alone.

Racks, UPS systems, batteries and plant can create concentrated loads as well as distributed loads. Structural capacity must be confirmed by appropriately qualified professionals for the proposed equipment arrangement; Noosphere does not provide structural engineering advice.

Cooling may involve air-cooled or water-cooled systems, chillers, cooling towers where applicable, roof or external plant, pipe routes and dedicated plant areas. Landlord approvals, noise, environmental constraints, water arrangements and access for maintenance can be as important as the headline power figure.

Building configuration and conversion potential

An existing industrial building can potentially be converted into a data centre, subject to technical, planning, building, power, structural, fire-services and landlord considerations.

Important configuration questions include floor plate, column grid, clear height, goods lifts, loading bay, risers, plant areas, roof access, external plant rights, secure circulation and 24-hour access. An older building should not automatically be rejected if its fundamental characteristics and infrastructure can support the requirement.

Equally, a visually modern building should not be accepted without verification. Conversion feasibility is a property and technical diligence question, not a conclusion that can be drawn from age or appearance.

Why does lease length matter?

Major infrastructure investment can make a short or uncertain lease commercially difficult, but the appropriate tenure depends on the operator’s investment model and negotiations.

The assessment should consider capital expenditure, utility upgrades, fit-out, depreciation or amortisation period, renewal options and landlord redevelopment risk. Rights to install, maintain, replace and remove infrastructure should be considered alongside the headline term.

The objective is not to prescribe one lease length for every data centre. It is to align property control with the time and capital required to make the facility operational.

What should be included in an offer to lease?

An offer should protect the occupier while the property’s technical and commercial assumptions are tested.

These are commercial points for discussion, not a substitute for legal advice. Final offer and lease documentation should be reviewed by the parties’ legal advisers and relevant technical consultants.

• Satisfactory technical due diligence
• Confirmation of existing electrical capacity and allocation
• Landlord cooperation with applications for additional power
• Rights for infrastructure, plant and equipment works
• Access, loading and maintenance arrangements
• A realistic fit-out and technical approval period
• A long-term lease structure aligned with investment
• Planning, building and other required approvals
• Clear reinstatement and removal obligations
• Exclusivity where appropriate to the search and negotiation

Site assessment checklist

A disciplined property screen should record the decision-critical unknowns before a building moves into detailed diligence.