Power Requirements Outpace Semiconductor Focus
Hong Kong is seeking to expand its computing capacity while ensuring the electrical grid remains both clean and stable as demand increases. Joseph Law, president of the Association of Southeast Asian Power Industries (AESIEAP) and managing director of CLP Power, outlined these requirements to regional utility executives on September 15.
Law’s remarks aligned with the priorities established in Hong Kong’s first five-year development blueprint and the Chief Executive’s 2026 Policy Address. The government has directed efforts toward achieving high-efficiency computing power, maintaining a stable electricity supply, and facilitating a low-carbon transition.
The scale of this infrastructure push is evident in the Sandy Ridge Data Facility Cluster. Construction on the project has already begun, with plans to deliver 180,000 petaflops of computing power by 2032. This capacity would be approximately 36 times Hong Kong’s current computing power.
Electricity Demand Growth Accelerates
The rapid expansion of artificial intelligence and data centers is reshaping assumptions about future electricity demand across the region. Law cited the International Energy Agency’s report, “Age of Electricity,” to highlight that electricity demand is growing 50 percent faster each year than the average of the past decade.
According to Law, this growth rate is at least two and a half times as fast as overall energy demand. He identified geopolitics, extreme weather, electric vehicles, and AI-driven data centers as factors challenging existing planning frameworks due to their pace and location.
Jimmy Khoo, chief executive officer of SP PowerGrid, noted that electricity demand driven by AI is growing at a scale and speed the industry has never experienced before. Years of decarbonization efforts were originally planned for a different pace of demand growth, necessitating new approaches to power system management.
Government Strategy Emphasizes Energy as Industrial Policy
Financial Secretary Paul Chan stated that Hong Kong would act as a “super connector” and “super value-adder” by deepening cross-border collaboration and strengthening regional energy cooperation. Chan described energy policy as industrial policy, asserting that access to clean, reliable, and affordable power will help decide where firms invest money.
Law proposed a line for Asia's energy transition focused on “resilience as the foundation, collaboration as the bridge.” He asserted that managed demand is among the least costly forms of new capacity needed to support this growth.