Equinix is to launch a new data center in Hong Kong.

The colo giant this week announced it would invest $124 million in a new International Business Exchange data center, known as HK6.

The new facility will be located in a building specifically built for data centers in Tsuen Wan, approximately 1.5 km from Equinix’s campus featuring HK1, HK2, and HK3.

Expected to open in Q1 2026, the first phase of HK6 will provide 1,000 cabinets. Upon completion, the 17-story data center will offer a total of 3,550 cabinets.

The company said HK6 will be able to support liquid cooling technology for high-density AI workloads.

Joanne Hon, managing director, Equinix Hong Kong, said: "We are thrilled to begin construction of our sixth data center in Hong Kong, as it represents a significant milestone in innovation and growth.

"HK6 will be Equinix's largest investment in Hong Kong in the past decade, further strengthening the city's digital infrastructure and showcasing our unwavering confidence in this dynamic market. This strategic investment solidifies Hong Kong's position as a crucial gateway for data exchange between China and the global community."

Equinix currently operates five data centers in Hong Kong. According to the company’s Q4 2023 earning presentation, Equinix is leasing all five sites – HK2-5 are all listed as stabilized assets.

Last month reports surfaced that Equinix may be seeking to sell a minority stake on its Hong Kong portfolio. The company is reportedly looking to sell a 20 percent stake in the business, which is valued at around $2 billion overall.