LCQ11: Enhancing Hong Kong's computing power to dovetail with National 15th Five-Year Plan
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Question:
Given that the Outline of the 15th Five-Year Plan calls for accelerating the development of the Northern Metropolis and highlights the need to strengthen the efficient provision of computing power, algorithms and data, to bolster support for computing facilities, to promote iterative innovation in models and algorithms, and to facilitate the development and utilisation of data resources; and given that the country's Report on the Work of the Government has also proposed building the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) into an international innovation and technology hub, the Chief Executive has instructed the formulation teams for the alignment with the 15th Five-Year Plan to work full speed to formulate the Hong Kong five-year plan so as to proactively dovetail with the national 15th Five-Year Plan, will the Government inform this Council:
(1) how it will collaborate with other GBA cities to enhance Hong Kong's power efficiency and reduce electricity costs, so as to bolster support for computing facilities;
(2) given the view that optimising algorithms can reduce the volume of computation and thereby lower the demand for computing power, how the authorities will collaborate with other GBA cities to promote iterative innovation in models and algorithms, so as to drive "AI+" development in Hong Kong;
(3) given that the Sandy Ridge Data Facility Cluster officially commenced construction last month and is expected to attain a computing power capacity of 180 000 peta-floating point operations per second (PFLOPS) by 2032, equivalent to 36 times the current computing power in Hong Kong, of the specific allocation mechanism for the enhanced computing power capacity;
whether the authorities have assessed what synergies such computing power capacity will generate with other GBA cities; and
(4) apart from the aforementioned deployment of computing power facilities, of the specific policy measures put in place by the authorities to advance the development of the international innovation and technology hub in GBA?
Reply:
President:
Computing power, as the foundation underpinning the development of artificial intelligence (AI), is a key element in achieving high-quality development and innovation and technology (I&T). The Hong Kong Special Administrative Region (HKSAR) Government actively aligns with the National 15th Five-Year Plan to build Hong Kong into an international I&T hub. As part of this effort, we are committed to developing computing power infrastructure, promoting the development and utilisation of data resources, and empowering different sectors of the economy through AI.
Regarding the question from the Hon Carmen Kan, in consultation with the Environment and Ecology Bureau, our reply is as follows.
(1) Through enhancing regional co-operation, the Government is increasing the use of zero-carbon energy in electricity generation in order to spearhead high-quality development in Hong Kong. With the enhancement of the Clean Energy Transmission System by end-2026, Hong Kong will be able to gradually import more zero-carbon energy from the Chinese Mainland. The Government also keeps planning ahead for the construction of electricity facilities to receive and process zero-carbon energy transmitted from other places. This will progressively reduce Hong Kong's reliance on fossil fuels for electricity generation, and help achieve the long-term goal of net-zero electricity generation as set out in Hong Kong's Climate Action Plan 2050. Since the price of zero-carbon energy is more stable than that of fossil fuels, increasing the use of zero-carbon energy will not only help stabilise electricity prices, but will also benefit the sustainable development of industries with higher electricity demand (such as the I&T industry).
(2) Technologies such as algorithm optimisation can to some extent enhance computational efficiency and reduce resource consumption. In fact, improving computational efficiency through AI model optimisation and resource deployment has become a global trend in AI development. The HKSAR Government has been dedicated to building the local AI ecosystem from multiple dimensions, including encouraging collaboration among the industry, academic, and research sectors. This enables local universities and research institutions with strong research and development (R&D) foundations to advance the R&D and transformation of frontier technologies in AI, including high-efficiency algorithms, through collaborating with counterparts in the Chinese Mainland and overseas. At the same time, the Government is accelerating the commercialisation of research outcomes through institutions such as the InnoHK cluster and the soon-to-operate Hong Kong Artificial Intelligence Research and Development Institute. By leveraging the synergies between Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), the application of relevant technologies in various scenarios will be promoted.
Furthermore, the Innovation, Technology and Industry Bureau (ITIB) signed a Memorandum of Understanding on Co-operation in Innovation and Technology Development with the Cyberspace Administration of China (CAC) on April 12, 2026, covering areas such as promotion of AI and cross-boundary data flow, with a view to implementing thoroughly the National 15th Five-Year Plan and the "AI+" initiative, supporting Hong Kong's development as an international I&T hub, and helping Hong Kong to better integrate into and serve the overall national development.
(3) The Government announced in early March this year the tender result of the Sandy Ridge Data Facility Cluster site, which will be developed into an advanced data facility cluster for data centres and related industries. As one of the key projects for the I&T development in the Northern Metropolis of Hong Kong, the Sandy Ridge Data Facility Cluster has a total floor area of 250 000 square metres, with nearly 90 per cent dedicated to high-tier data centres. The project has entered the construction stage and is expected to commence operations in 2029. From the development to the third year of operation, the estimated cumulative investment is $23.8 billion, creating an estimated economic output of $4.6 billion and approximately 180 skilled positions. It is expected to provide computing power of 180 000 peta-floating point operations per second (PFLOPS) by 2032, which is equivalent to 36 times the current computing power in Hong Kong.
The Sandy Ridge Data Facility Cluster will provide crucial support for the development of AI in Hong Kong with essential elements such as data and computing power. It is also well-positioned to attract resources such as technology and talent to facilitate the aggregation of data from the Chinese Mainland and around the world and for the development of related industries, hence creating an industry-clustering effect, with a view to deepening Hong Kong's leading advantages in digital infrastructure of the GBA and cross-boundary data flow, promoting the development of the digital economy and smart city, as well as making active contribution to our country's high-quality development and the "AI+" initiative. As regards the allocation of computing power in the Data Facility Cluster, it will be determined by the operator according to its business plan and market demand.
(4) Data is the key driver of AI, innovation, and high-quality development. Facilitating the data flow within the GBA is a crucial step towards establishing Hong Kong as an international I&T hub. In addition to the afore-mentioned AI initiatives, the ITIB and the CAC jointly promulgated the "Standard Contract for the Cross-Boundary Flow of Personal Information within the Guangdong-Hong Kong-Macao Greater Bay Area (Mainland, Hong Kong)" (the GBA Standard Contract) in December 2023, as a facilitation measure to promote the cross-boundary flow of personal data from Mainland cities in the GBA to Hong Kong, and to streamline the relevant arrangements. Currently, all industries in Hong Kong may participate in the facilitation measure and voluntarily adopt the GBA Standard Contract for cross-boundary flow of personal information, thereby promoting more cross-border services for the convenience and benefits of both the public and business sectors, and accelerating data flow within the GBA. In addition, the Government has been promoting the development and application of information and communications technology (including AI) in Guangdong and Hong Kong through the Hong Kong/Guangdong Expert Group on Co-operation in Informatisation and the Hong Kong/Guangdong Expert Group on Co-developing a Smart City Cluster, enabling more cross-boundary public services, promoting data interoperability between the two areas, and exploring smart connectivity applications across more industries, hence complementing the development of the GBA as an international I&T hub.
Ends/Wednesday, April 22, 2026
Issued at HKT 14:25
Issued at HKT 14:25
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