Release Date 1 Dec, 2021
SUNeVision CEO Raymond Tong Shares Data Centre Market Outlook on 'Bloomberg Markets: China Open'
Raymond Tong, CEO of SUNeVision, speaks on 'Bloomberg Markets: China Open' with programme anchors Yvonne Man and David Ingles to discuss the company’s upcoming growth plan, risks and opportunities in Hong Kong data centre industry as well as and market outlook in Asia. Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News.
Key interview highlights:
Solid business performance
• Revenue from data centre business increased 14% YOY
• EBITDA from continuing operations increased 15% YOY
• Underlying profit attributable to owners of the Company increased 11% YOY
Upcoming expansion plan
• SUNeVision is operating 5 data centres in Hong Kong, with 3 upcoming data centres, namely MEGA IDC, MEGA Gateway and MEGA Fanling, to be launched in 2022.
• The company is confident in filling up the data centre capacity due to the high demand from global and Chinese cloud players. In particular, MEGA Fanling is 100% pre-committed by a major cloud customer to support its business expansion in Greater China, which means the new site will be fully occupied once opened.
• As backed by Sun Hung Kai Properties, SUNeVision has a long-term investment in Hong Kong. Upon completion, SUNeVision will have 8 data centres in Hong Kong with the total gross floor area (GFA) increased double from 1.4 million sq. ft. to around 3 million sq. ft. The total power capacity will be increased by 4 times (from 70MW to 280MW).
Risks and opportunities
• Despite the geopolitics and regulatory environments, SUNeVision’s business continues to be strong which is reflected by its solid annual results. While the company will continue to monitor the situation closely, the growth of data cannot be disrupted and it is further accelerated by the pandemic.
• Chinese companies like to use Hong Kong as a hub when they want to reach global markets. For global players, when they come to Asia and want to enter the Chinese market, they also prefer to use Hong Kong as a hub. SUNeVision connects the mainland with the world and vice versa.
• Currently, there are 11 subsea cables connecting Hong Kong to the rest of the world, with 9 of them working with SUNeVision, Asia’s connectivity hub. Despite the suspension of some subsea cable projects, data will not stop growing and some local and regional cable operators are accelerating their plans to come to Hong Kong.
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• | Revenue from data centre business increased 14% YOY |
• | EBITDA from continuing operations increased 15% YOY |
• | Underlying profit attributable to owners of the Company increased 11% YOY |