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Roadmap towards hong kong data center regulatory landscape 4 jul2013
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Roadmap towards hong kong data center regulatory landscape 4 jul2013

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Presentation at DatacenterDynamics HK 2013 …

Presentation at DatacenterDynamics HK 2013
Jul 4 2013

Published in: Technology, Business

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  • 1. Roadmap towards Hong Kong Data Centre Regulatory Landscape Charles Mok Legislative Councillor (IT) 4 July 2013
  • 2. Availability of land and space Power supply / Environmental and energy saving issue Manpower needs Emerging technical opportunities and challenges 1 2 3 4
  • 3. 1 Availability of land and space Release development control in HK  Land use restrictions in Government leases - Height and density  Town planning zoning - IT&T industries are permitted in areas zoned as Commercial, Industrial, Other Uses (Business), Other Uses (Mixed), Other Uses (Industrial Estates), and Residential. - Permission for Comprehensive Development Areas, mostly urban renewal areas.  Building Ordinance - Supporting facilities such as transformer rooms, UPS (uninterruptible power supply), backup power generators, oil tanks, air-conditioning systems and fire safety systems
  • 4. 1 Availability of land and space Need for more suitable land and space  An additional 170 000 sq metres of RFS required for data centres by 2015, including some 47 000 sq metres for high- tier ones (Ref: OGCIO) 17.8 h 1 h2 h Totally 17.8 hectares of land for data centre development in Tseng Kwan O 2 extra hectares of land in Tseng Kwan O for future development While 1 hectare will be available for open bidding during 28 Jun to 4 Oct 2013
  • 5. 1 Availability of land and space Site acquisition Greenfield Sites in Open Market  9 commercial sites in the land Program; only 2 are planned to be available this year.  As bidding take place on a competitive pricing basis, successful bid for data centre use is unlikely. 9 2
  • 6. 1 Availability of land and space Redevelopment of Industrial Buildings for Other Uses  Owners are allowed to pay 80% of the premium by annual instalments over 5 years at a fixed rate of interest (if the premium exceeds HK$20 million).  Exemption from paying waiver fee for change of land use  However, application should not generally be less than 60% of the maximum permitted density: an optimal use in terms of value? 60% Permitted density
  • 7. 1 Availability of land and space Wholesale and partial conversion  Lands Department issues waivers to owners of industrial premises which facilitates the setting up of data centres.  The conversion works must be completed within 3 years after the granting of the waiver.  The building must not be less than 15 years old calculated from the date of the occupation permit.  The waiver lasts for the lifetime of the building or until the expiry of the current lease, whichever is earlier, and the building cannot be used otherwise than for the newly permitted use without further consent from the Government. Application By 31 March 2016
  • 8. 1 Availability of land and space HK Science & Technology Parks  Should consider to make more land available for co-location data centre use.  The lessee cannot sub-lease or licence space to a third party.  Hosting, managed and outsourcing services are acceptable within this restriction but co- location services is not.  Artificial and ambiguous?
  • 9. 1 Availability of land and space Underground Cavern Sites (Rock Cavern Development)  Ownership of the sub-surface can be stratified into different levels by means of separate land grants from the Government.  The Land Resumption Ordinance would require some statutory modification to clarify its scope.  Currently there is no right to claim compensation for blight on the surface or neighboring properties – impact with EIAO
  • 10. 1 Availability of land and space Underground Cavern Sites  Underground uses may raise environmental problems: - Lowering of local groundwater tables through pumping - Discharges from facilities, including into underground water systems - Disposal of excavated material - Destruction of buried heritage site
  • 11. 2 Power supply / Environmental and energy-saving issue Infrastructure  HK has 9 submarine cable systems, 17 overland cable systems and eight satellites support our telecommunications network  2 new submarine cable systems will be landed in HK from 2012 to 2013
  • 12. 2 Power supply / Environmental and energy-saving issue Consumption  The power consumption of a high-tier data centre (requiring about 20 – 30 MVA or mega volt amperes) can be as much as 10- 15 times that of a 320-unit residential building (typically requiring about 2 MVA electricity).  Necessary to mandate compliance with specified environmental requirements, such as power efficiency and certification by recognized bodies?  Concerns over change in tariff regime
  • 13. 2 Power supply / Environmental and energy-saving issue HK Government Programs  Under BEEO, Building Energy Code (BEC), Energy Audit Code (EAC) and related measures are implemented for building services installations including air-conditioning, electrical and lighting and lift/escalator installations.  The FWCT Scheme is applicable to data centres that adopt water-cooled air-conditioning systems using fresh water cooling towers.
  • 14. 2 Power supply / Environmental and energy-saving issue Green Data Centre  Promote renewable energy (Data Centres in HK: <1% Renewable energy, 54% Coal, 23% Nuclear, 23% Natural Gas)  Energy-saving measures in construction and operation, optimization of air flow and chiller systems, virtualization of computer servers
  • 15. 2 Power supply / Environmental and energy-saving issue Green Data Centre  Review Town Planning (increase infrastructures for water cooling)  Promote central water cooling system (as in Science Park)  Establish tax credit for data center with environmental-friendly installation and innovation
  • 16. 2 Power supply / Environmental and energy-saving issue Green Data Centre  Collaborate with electricity / other utilities to develop renewable energy - Sustainable energy efficiency - Dual / Smart grid practice - ‘Off-Peak Electricity’ energy saving initiative (energy return and cash rebate) - Use of landfill gas
  • 17. 3 Manpower Needs  Difficulties in recruiting highly skilled and experienced data centre managers, architects, and operators  Review overall manpower and education policies  Professional certification development  Increase cooperation among industries and educational institutes for professional training
  • 18. 4 Emerging technical opportunities and challenges  Cloud Computing  Security - data protection
  • 19. Thank you! Charles Mok charlesmok@charlesmok.hk www.charlesmok.hk With credit to Hilary Cordell of Cordells for part of the information in this presentation