Amazon is acquiring data centers in Hong Kong from Grand Ming for approximately $312 million.

Amazon Web Services has agreed to acquire two data centre projects in Hong Kong's New Territories from developer Grand Ming Group for up to HK$2.45 billion ($312 million). The acquisition of iTech Towers 3.1 and 3.2 in the Fanling area transforms AWS from tenant to owner, with a base price of HK$2.18 billion plus conditional payments of up to HK$265.8 million tied to completion of remaining phases.

The transaction reflects Grand Ming's acute financial distress. The developer disclosed covenant breaches affecting HK$4.8 billion in loans in July 2025, and by March 2026 faced HK$5.4 billion in loans due on demand or within a year against cash holdings of only HK$24.3 million. Auditors flagged uncertainty regarding the company's financial viability, prompting chairman Chan Hung Ming to declare: "The group's going concern assessment relied on a package of measures which included the successful disposal of the properties."

The twin facilities span 186,000 square feet (17,280 square metres) with 8MW of IT load capacity. AWS would pay HK$15.3 million per megawatt at the minimum compensation level. Grand Ming delivered the first two phases of iTech 3.1 to AWS in December 2025, with remaining phases currently under fitout. While the developer did not explicitly identify AWS as occupant of iTech 3.2, it noted that AWS's conditional compensation is net of payments already made for the building's construction.

Grand Ming had pursued potential buyers since June 2025 through non-binding processes with multiple parties, failing to reach definitive agreements. Unsuccessful suitors included Bain Capital and the UK firm Actis. The developer cited AWS's control over iTech 3.1 and the symbiotic design of the neighbouring projects in explaining its decision to sell both assets to the American group.

Grand Ming expects to record a disposal loss of HK$1.09 billion if conditional payments are not received. The base price represents a 19 percent discount to Knight Frank's HK$2.69 billion valuation, which assumes completion of outstanding works. After deductions and expenses, base net proceeds of HK$2.08 billion fall short of the HK$2.17 billion outstanding under property loan facilities by HK$87.1 million—a gap Grand Ming may need to cover through further asset sales. If all milestones are met, proceeds would rise to HK$2.32 billion, providing HK$153.7 million for working capital after loan repayment. The sale is projected to save HK$136.3 million annually in financing costs, though Grand Ming still faces HK$72.5 million in estimated construction and fit-out costs.

Grand Ming's shares surged 39.7 percent on Monday to HK$0.405, then declined 13.6 percent on Tuesday to HK$0.35—leaving the stock 20.7 percent above Friday's HK$0.29 close but down 60 percent since the start of 2026. The transaction targets initial closing on 26 February 2027, subject to shareholder approval, permits, security releases and a lender standstill agreement. Chan and his wholly owned vehicle, which together hold 64.89 percent of Grand Ming, have committed to vote in favour.

The acquisition signals intensifying cloud infrastructure competition in Hong Kong. Goodman Group recently raised $455 million in equity for its $2.7 billion Hong Kong Data Centre Partnership, primarily for mechanical and electrical works at its HKG10 facility in Tsuen Wan, which is designed to deliver 32 megawatts of IT capacity backed by 50MW of secured primary power, with first capacity expected in early 2028. The partnership, established in July 2025, includes PGGM, APG, the Canada Pension Plan Investment Board, CBRE Investment Management and an unnamed Middle Eastern investor alongside Goodman's 20 percent stake.

Gaw Capital Partners announced a non-binding plan to invest up to HK$2 billion in an AI computing venture at broadcaster TVB's Tseung Kwan O campus, with TVB holding 51 percent and Gaw 49 percent. The first phase is targeted to begin operating in the fourth quarter of 2027, subject to approvals and definitive agreements.

The Hong Kong government's Sandy Ridge data centre tender, launched in October, required at least 150,000 square metres of floor area. The site was awarded in March to Hong Kong Range Intelligent Computing Technology Company for a land premium of HK$581 million, following a single bid. Sandy Ridge has now entered construction, with operations due to begin by 2029.