PCCW Global and Keppel T&T collaborate on an international carrier exchange in Hong Kong
Facility will serve organizations using the new AAE-1 submarine cable connecting Asia, the Middle East, Africa and Europe
PCCW Global has entered into a long-term collaboration agreement with Keppel Data Centres Holding Pte Ltd, a joint venture between Keppel Telecommunications & Transportation Ltd (Keppel T&T) and Keppel Land Limited.
The two companies will co-develop and market an international carrier exchange in Hong Kong, which offers connectivity-related managed services to facilitate interconnects. The collaboration leverages PCCW Global’s extensive global network connectivity and marks the expansion of Keppel T&T’s data center footprint to Hong Kong.
Located in a prime business district on Hong Kong Island and a 40-minute drive from Hong Kong International Airport, the international carrier exchange will feature 1,000 square meters of high quality telecommunications center space upon its expected completion in the fourth quarter of 2016. It will be fitted out to Tier III specifications with 2N power redundancy that ensures service availability of up to 99.982%.
The international carrier exchange is situated in the same building as the Hong Kong Point of Presence (PoP) for the new Asia-Africa-Europe-1 (AAE-1) submarine cable. Stretching approximately 25,000 km, the AAE-1 is designed to connect Asia, the Middle East, East Africa and Europe, and is expected to be ready during the fourth quarter of 2016. It will employ 100Gbps technology, with a capacity of more than 40 terabits to provide customers with low-latency, direct connectivity around the world. The building is also served by PCCW Global’s extensive backhaul network, which will seamlessly link the international carrier exchange to many submarine cable landing stations and serve as a gateway to mainland China.
Marc Halbfinger, Chief Executive Officer of PCCW Global, said, “We are pleased to be playing a role in extending Keppel’s facility footprint to Hong Kong, which will reinforce the city’s reputation as one of Asia’s leading technology hubs. Indeed, Keppel T&T has been running high quality facilities supporting mission-critical operations for more than 10 years.”
Keppel Data Centres Holding Pte Ltd, a joint venture between Keppel Telecommunications & Transportation and Keppel Land Limited, will subsequently carry out the terms of the collaboration through a wholly owned subsidiary to be formed in Hong Kong for this purpose.
Thomas Pang, Chief Executive Officer of Keppel T&T, said, “We are happy to partner with PCCW Global for our first investment into the Hong Kong colocation market, which benefits from the city’s status as a key telecommunications and financial hub, as well as its connectivity to other hubs in Singapore, Amsterdam, London, and Sydney. The expansion of Keppel’s data center footprint to Hong Kong is another step towards creating a data center value ecosystem that goes beyond colocation to providing value-added services and connectivity for our valued clients.”
Hong Kong is home to a strategic data center market that acts as a springboard to mainland China for multinational corporations because of its proximity and mature legal system. According to the independent Structure Research consultancy, the territory’s data center market was valued at HK$4.8 billion in 2015 and is expected to grow at a compound annual growth rate of 18% to reach HK$10.8 billion by 2020.