Asia’s AI Power Race: Why Computing Power Beats Chips
Hong Kong is prioritising clean, reliable power to support a surge in AI data‑centre demand. The city’s new Sandy Ridge cluster aims to deliver 180,000 petaflops by 2032, driving a regional shift toward resilient, collaborative energy solutions.
By Felo News Desk · Published
Hong Kong’s ambition to become a hub for artificial intelligence is no longer a story about silicon or software; it is a story about electricity. In a keynote delivered on 15 September at the AESIEAP CEO Conference 2026, Joseph Law, president of the Association of the Electricity Supply Industry of East Asia and the Western Pacific (AESIEAP) and managing director of CLP Power, outlined the city’s plan to secure clean, steady power for the next wave of AI data centres.
From Blueprint to Reality
The city’s first five‑year development blueprint and the Chief Executive’s 2026 Policy Address both emphasise “high‑efficiency computing power, stable electricity supply, and low‑carbon transition.” In line with that vision, construction of the Sandy Ridge Data Facility Cluster has already begun. By 2032 the cluster is expected to deliver 180,000 petaflops – roughly 36 times Hong Kong’s current computing capacity – positioning the city as a key player in the global AI race.
Power Demand Surges Ahead of Decarbonisation Plans
According to the International Energy Agency’s “Age of Electricity,” electricity demand in Hong Kong is growing 50 % faster each year than the average of the past decade, and at least 2.5 times the pace of overall energy demand. The drivers of this surge are clear: geopolitical tensions, extreme weather, electric vehicles, and, most prominently, AI‑driven data centres. These loads are arriving faster than traditional planning models can accommodate, forcing utilities to rethink how they generate, transmit, and manage power.
Planning for a Digital‑First Grid
Jimmy Khoo, chief executive officer of SP PowerGrid, stressed that “energy infrastructure and digital infrastructure must be planned together from the beginning.” The old model – where a developer selects a site before utilities plan grid extensions – no longer works. Khoo called for a coordinated approach that aligns data‑centre locations, network requirements, and generation sources before land is allocated, thereby reducing costs, shortening implementation times, and increasing flexibility.
CLP Holdings’ chief executive, T. K. Chiang, highlighted the rapid growth of data‑centre sales in Hong Kong, which rose nearly 12 % in the first half of 2026 and now account for more than 7 % of CLP’s local sales. He cited a Wood Mackenzie study predicting that electricity demand from Chinese data centres could more than triple to 774 TWh by 2030. In Hong Kong, the Northern Metropolis is being positioned as a major innovation hub, and its success hinges on a power system capable of supporting advanced digital infrastructure.
Regional Collaboration as the New Standard
Financial Secretary Paul Chan framed Hong Kong’s role as a “super connector” and “super value‑adder,” emphasising that energy policy is also industrial policy. By deepening cross‑border and cross‑sector collaboration, the city aims to make green standards more effective across markets and strengthen regional energy cooperation. Delegates from 18 economies noted that Hong Kong’s unique position between the mainland and international markets makes it an ideal venue for dialogue on shared challenges.
Wong Kim‑yin, chair of Asia for the World Energy Council and group chief executive of Sembcorp Industries, described the new AI load as a “tsunami” that strains tight grid connections, scarce generation, and long equipment lead times. He argued that harnessing intelligence to operate better and building reliable power capacity are essential for digital growth.
Looking Ahead: CEPSI 2027 and Beyond
The conversation will continue at the Conference of the Electric Power Supply Industry (CEPSI) 2027, scheduled for 31 October to 4 November. The event is expected to attract 2,000 delegates from utilities, governments, tech firms, research institutions, and industry partners worldwide. Building on the momentum of the CEO Conference, CEPSI will provide a broader platform for showcasing innovation, exploring emerging opportunities, and deepening collaboration across the Asia‑Pacific region.
In short, Hong Kong’s strategy recognises that the future of AI will be decided not by the chips on a circuit board, but by the clean, resilient, and collaborative power network that supports them. As the city and its partners work to meet the unprecedented demand, the region’s energy landscape is set for a transformative shift.
Key facts
- Hong Kong’s Sandy Ridge cluster aims for 180,000 petaflops by 2032
- Electricity demand is growing 50 % faster than the past decade
- AI data‑centre loads are outpacing traditional grid planning
- Co‑planning energy and digital infrastructure is essential
- Regional collaboration is key to meeting clean‑power goals
- CEPSI 2027 will expand the dialogue to 2,000 delegates
Why it matters
Secure, low‑carbon power is the linchpin for Asia’s AI future; without it, the region risks falling behind in the global technology race.
Frequently asked questions
What is the Sandy Ridge Data Facility Cluster?
A new data‑centre complex in Hong Kong designed to deliver 180,000 petaflops of computing power by 2032, supporting the city’s AI ambitions.
Why is clean power important for AI?
AI data centres consume vast amounts of electricity; clean, reliable power ensures sustainability and reduces carbon footprints.
How will Hong Kong support the new demand?
By building resilient grid infrastructure, accelerating renewable projects, and fostering cross‑border collaboration through AESIEAP and CEPSI.
Sources
- [1] scmp.com — originally reported as “Power, not chips, will decide where Asia’s AI gets built”
