Speech by PSCT at ground-breaking ceremony of Google’s data centre

The following is a speech by the Permanent Secretary for Commerce and Economic Development (Communications and Technology), Miss Elizabeth Tse, at ground-breaking ceremony of Google’s data centre today (December 8):

Mr Liu (John Liu, Head, Google Greater China), the Google Team, ladies and gentlemen,

Good afternoon! It gives me great pleasure today to officiate at the ground breaking ceremony of Google’s data centre in Hong Kong. I understand that this is not only going to be Google’s first data centre in Hong Kong, but also one of its first in Asia. Congratulations to Google on this major development!

This is an important moment for both Google and Hong Kong. For Google, this investment shows a strong commitment to Hong Kong and our more than 4.8 million Internet users. Many of them turn to Google every day and will benefit from faster and more reliable access to Google’s services. For Hong Kong, this is a key milestone in our development as a regional data centre hub. Google’s data centres are known for their energy efficiency, environmental friendliness and data security. Hong Kong welcomes more of such high quality international data centres on board, and I am sure your data centre neighbours here in Tseung Kwan O will be as eager as I am to tell you that you’ve found the right place.

Data centres are the brains of businesses in this digital era. We know how much care global enterprises, like Google, will take to ensure the safety and high availability of their data centres. They are willing to invest hundreds of millions of dollars in their data centres just to have peace of mind - to eliminate the slightest risk of any possible failure in their mission-critical operations. As a prime location for setting up data centres in the region, Hong Kong can give you this peace of mind.

According to the Data Centre Risk Index jointly published by two international consulting firms earlier this year, Hong Kong is the safest place in Asia for setting up data centres, and ranks 4th in the world. We regard data centres as critical infrastructure, and they are well supported here with our excellent telecommunications networks, reliable power supply and competent IT professionals. We are keen to ensure a fair policy and pro-business environment for the development of data centres. Our laws, in particular, uphold the free flow of information and protect data privacy. Our dedicated Data Centre Facilitation Unit under the Office of the Government Chief Information Officer provides one-stop support services to companies interested in setting up their data centres in Hong Kong.

Data centres are not only important to the operation of individual companies, but are also essential for sustaining the development of the Internet economy at large. Hong Kong has a very vibrant Internet economy. According to a recent study commissioned by Google, Internet economy accounted for 5.9% of Hong Kong’s GDP in 2009, and would be growing rapidly at 7% a year. This finding is encouraging, but hardly surprising. Hong Kong has the right conditions for Internet economy to thrive –

- Our broadband network is one of the fastest in the world;
- Our broadband penetration is among the highest in the world;
- More than half of our mobile phone users are using smartphones with Internet connectivity; and
- Almost 70% of our population are Internet users.

Perhaps, most importantly, Hong Kong people simply love to stay online. With our ubiquitous WiFi hotspots and affordable wireless broadband services, many of us have taken for granted unlimited Internet access, anytime, anywhere. From e-commerce to e-learning; from social networking to video streaming; from online discussion to online gaming – Hong Kong people are embracing the Internet like never before. It is particularly interesting to note that almost 80% of Hong Kong’s Netizens watched videos online, and most of them do so on YouTube.

This robust growth of Internet usage and Internet economy is not only happening in Hong Kong, but also in other parts of this region. The increasing globalization and digitization of business and people’s everyday life demands support by data centres in close proximity to the heart of their operations. And the demand will rise all the more when cloud computing becomes more prevalent. As a leading provider of global Internet and cloud-based products and services, Google has made this strategic move to set up its data centre in Hong Kong, so that it can better serve its customers in this region. It is well and truly generating the ripple effects in helping expand our economy. I must say you have made a right choice.

As an international financial and trading centre with world-class infrastructure and system, Hong Kong is here to help you serve the region. Leveraging on Hong Kong’s unique position and competitive edges, Google today is not only breaking the ground for its first data centre in Hong Kong, but also breaking new grounds in advancing its business in Asia Pacific.

Congratulations again on this important milestone. I look forward to visiting this data centre when it is up and running.

Thank you very much.