Amazon to Acquire Two Hong Kong Data Centers from Grand Ming for Up to US$312m

Amazon has moved to deepen its data center footprint in Hong Kong through the acquisition of two adjacent facilities from local developer Grand Ming Group Holdings, a deal that underscores the sustained appetite among hyperscalers for owned infrastructure in the region even as they continue to expand through leasing arrangements.

Grand Ming announced earlier this month that Amazon Data Services Hong Kong Limited had agreed to purchase iTech Tower 3.1 and iTech Tower 3.2, two data center properties located at 3 On Kui Street and 8 On Chuen Street in Fanling, within Hong Kong's New Territories. The first phase of iTech Tower 3.1 was delivered in December 2025 and is already leased to Amazon, with remaining fit-out works still ongoing. Construction on iTech Tower 3.2 is continuing.

The transaction carries a minimum gross consideration of HK$2.18 billion (US$277.88 million), with potential additional payments of up to HK$265.8 million, bringing the maximum consideration to HK$2.445 billion (US$311.66 million). Those further payments will be determined based on the scope of the planned fit-out and construction works. The sellers are Regal Development Limited and Golden Ford Limited, both subsidiaries of Grand Ming, and the deals are scheduled to close in February 2027.

Upon completion of the iTech Tower 3.1 sale, Grand Ming will cease to receive rental income under the existing leasing and colocation arrangements. The company said the disposal forms part of a broader effort to deleverage its balance sheet through all viable strategies and reinforce long-term financial stability. Grand Ming carries sizeable debt liabilities that need to be repaid, and the sale is one of a package of measures the company has identified as necessary to ensure its survival as a going concern.

"The disposal provides the group with an opportunity to sell the two properties in their entirety to a single purchaser and realise substantial cash proceeds that would enhance the Group's financial position while reducing its overall indebtedness, while reducing its exposure to financing costs and the risks of retaining and developing the properties," the company said.

Grand Ming added that while it had considered selling the properties separately or bundling them with its other data centers, selling both to a single buyer "reduces the time, execution risk, and duplicated costs" of separate transactions, particularly given that Amazon's consent would have been required to sell iTech Tower 3.1 to a third party.

The two buildings trace their origins to a land acquisition in 2022, with work on the first phase of iTech Tower 3 beginning the same year. According to Grand Ming's website, the nine-story project will offer a combined 185,000 square feet (17,185 square meters) and capacity for 1,000 racks. Grand Ming had previously been in discussions to sell its data center business, reportedly to Actis and Bain Capital, but neither deal materialized. Bain Capital had shown interest in acquiring Grand Ming's in-development data centers for HK$2.15 billion (US$276 million), but the exclusivity period between the two parties expired in September before a definitive agreement could be signed.

Grand Ming also operates iTech Tower and iTech Tower 2, two other data center properties in Hong Kong. The first facility launched in Tsuen Wan in 2008, with iTech 2 in Kwai Chung following around 2012. It remains unclear whether the company is still working to sell those facilities.

For Amazon, the acquisition builds on a longstanding presence in the territory. The company launched an AWS cloud region in Hong Kong in April 2019 with three availability zones, and the purchase of the Fanling facilities would give it direct ownership of capacity that it currently leases. Amazon has not commented on the acquisition.

The deal reflects a wider trend among hyperscale cloud providers to secure control over data center assets in strategic locations, particularly in markets where land and power constraints make existing facilities increasingly valuable. By acquiring rather than continuing to lease, Amazon gains greater operational flexibility and long-term cost certainty in a key Asian financial hub.