Thailand

HKTDC Became Super Connector and Helped Hong Kong Enterprise to Build Data Center in Thailand

According to CBRE's Asia-Pacific Data Center Trends Report for the 1H 2020, it is expected that more than 215 MW of capacity will be put into the Hong Kong market. Hong Kong has a well-established regional network infrastructure and is a mature economic hub close to the Mainland China market. It has become a first-tier data center market that attracts the attention of international investors, operators and users. As a Hong Kong-based data center operator in the Asia-Pacific region, OneAsia Network has been striving to expand its business base in the Asia-Pacific region, and with the coordination and support of the Hong Kong Trade Development Council (HKTDC), this ambitious plan is making a breakthrough. Following the footsteps of Hong Kong, Shanghai and Nantong in Jiangsu Province, OneAsia Network is building new large-scale data centers in Thailand and Japan, as well as implementing a data center construction plan in Korea. With the support of HKTDC's investment promotion services in various places, OneAsia Network is building a truly interconnected digital business network.

OneAsia Network is a subsidiary of the Legan Group, which provides enterprises with a wide range of solutions such as data centers, network connectivity, cloud management, digital infrastructure services and information technology. Since its establishment in 2009, the goal of the company has always been expanding its business to the Mainland China, North Asia and South Asia for regional development. Mr Charles Lee, Founder and Chief Executive Officer of Legan Group, said that the company's is to reflect its business vision of basing itself in Hong Kong and radiating the whole of Asia. The company is called “OneAsia Network” because data needs different 'points' to form data clouds in order to achieve real interconnection. Especially for customers with regional businesses, data center operators in different cities will be able to help and meet the needs of business development.

Driven by a clear vision, OneAsia Network chose Thailand to build its first data center outside Greater China. “Data center operations have a high demand for land and power. Thailand is one of the few countries in Southeast Asia with advanced telecommunications, and as Singapore government no longer encourages the allocation of land for the construction of data centers in recent years, so Thailand, which plays a more neutral role, has become our first choice.” Mr Lee said.

Helping to build network, introducing banks and providing information

Mr Charles Lee is familiar with HKTDC's business network and investment promotion services around the world. The team of OneAsia Network contacted HKTDC's office in Thailand through formal channels and explain the company's development needs in Thailand. Land purchase is the first step in the expansion plan. HKTDC first introduced the local real estate situation to the company, and then recommended reliable telecommunications companies, lawyers, accountants and headhunting companies. From the initial contact to the implementation of land purchase investment and construction, the whole process was completed in less than a year.

Mr Charles Lee describes the HKTDC as a "white cane" which enables unfamiliar enterprises to grasp local market information. "HKTDC introduced Hong Kong-related chamber of commerce in Thailand to help us understand the local business environment. These valuable free advice and market information, contacts and introductions of business partners, together with our data research, were complementary to each other and greatly helped us to start the first stage of basic work.

Generally speaking, foreign companies can only own 49% of the land and company titles in Thailand, but with the help of the Thailand Board of Investment, OneAsia Network has successfully obtained 100% ownership of the land and company purchased, and the total investment in the whole Thai investment project has reached 90 million US dollars. "It is expected that the data centre to be completed in the third quarter of next year will have an area of 250,000 square feet, which is definitely among the top 10 in Thailand".

Similar one-stop advisory and assistance services provided by the HKTDC have also helped the company to conduct land sales and market research in Japan and Korea. In Japan, OneAsia Network was introduced by HKTDC to local banks and investors to provide financing services.

Working at home stimulates demand for digital services

Mr Charles Lee, who is also the chairman of the Hong Kong Data Center Association, believes that even in the face of challenges from regional competitors, Hong Kong's future development of data center services is still promising. "As an international financial center, many financial institutions in Hong Kong need to establish a digital infrastructure. As a data network center, Hong Kong has the advantages of connecting the whole world with telecommunications submarine cables, less natural disasters, large number of talents in technology and sound legal system. Hong Kong has great potential to become a data center in Asia." Mr Lee said. He also pointed out that data is the “gold of modern commercial society”, and commented that if the government can promote and encourage Chinese enterprises to store data in Hong Kong, establish a "data exchange center" to promote big data analysis and application, and help different enterprises and industries in scientific research, market research and business development, so as to strengthen Hong Kong's soft power.

The new normal under the epidemic situation not only brings challenges to many enterprises, but also brings business opportunities worth grasping. Mr Lee said under the upsurge of "home economy", more and more enterprises have OneAsia Network to provide digital infrastructure services for these enterprises to support employees to work at home. “The digital economy is the inevitable trend of business development in the future. All companies need to face the digital transformation, which involves a lot of resources. The resources of SMEs are relatively less abundant, and it would be best if the digital upgrading and transformation could be integrated and coordinated by the HKTDC.” he said. It is this reason that the industry supports and welcomes the latest Transformation Sandbox (T-Box) programme by HKTDC. This free support scheme provides SMEs with services such as brand upgrading, production and supply chain solutions and market development to help them enhance their competitiveness.

Looking ahead, Mr Lee expects the company to continue to expand to different parts of the world. The expansion blueprint of the data center includes Vietnam, Malaysia, India and Australia. "We look forward to having HKTDC to continue playing an active role in the expansion process and helping us accelerate our entry into new markets."

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Mr Charles Lee, Founder and Chief Executive Officer of Legan Group and OneAsia Network, said that under the upsurge of "home economy", more and more enterprises approached the company to provide digital infrastructure services for these enterprises to support employees to work at home.

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The data center in Nantong, Jiangsu, covers an area of 1.2 million square feet.

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There is a 24-hour monitoring center in the data center to monitor the safety of the facilities around the clock to ensure effective operations.

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The data center occupies a large area and consumes lots of power. When expanding to other places, it is necessary to consider what infrastructure support can be provided locally to achieve sustainable development.

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Headquartered in Kowloon Bay, OneAsia Network is based in Hong Kong and radiating to the whole of Asia.