Hong Kong Data Center Financing Stalled as Banks Question $2.6 Billion Loan to Little-Known Chinese Firm
nashnova research
Mainland firm Range Intelligent Computing wants to borrow HK$20 billion to build a Hong Kong data center, but banks doubt its ability to repay and talks have stalled — the deal's fate is a direct test of whether Hong Kong's data-center strategy can actually attract financing.
A HK$24 billion site — why did only one bidder show up?
Hong Kong auctioned the Sha Ling site last year as a high-tech data-center park. It drew only one bid — from Range Intelligent Computing Technology Group, a mainland Chinese firm.
Range pledged HK$24 billion in investment and told banks it plans to borrow roughly HK$20 billion (about US$2.6 billion), which would make it one of Hong Kong's largest loan deals this year.
This means → Hong Kong's data-center ambitions got a cold start: international capital stayed away, and a single mainland company was the only taker.
The HK$2 billion tranche stalled — yet the HK$18 billion tranche is easier?
Range proposed a two-step plan: borrow HK$2 billion first (phase one), then raise the remaining HK$18 billion by year-end.
Counterintuitively, the larger HK$18 billion tranche moved more smoothly — Range offered collateral. But on the smaller HK$2 billion loan, executives refused to provide a guarantee, and talks hit a wall.
In plain terms = the company will pledge assets for the big loan but won't back the small one — banks naturally ask: if you won't stand behind HK$2 billion, why should we trust you with HK$20 billion?
Why haven't the banks walked away?
In July, Range vice-general manager Zhang Xian — the founder's daughter-in-law — led a delegation to Hong Kong to meet lenders, months after the company first sought commitments.
Some banks are still working on proposals, largely because Range already has lending relationships with them on the mainland — they don't want to lose onshore business over one offshore deal.
Range told banks it wants the small loan locked by end of September and the HK$18 billion facility launched before year-end.
Why is North American capital pulling back?
North American investors are retreating from Hong Kong's data-center market, redirecting funds toward projects tied to Alphabet, Microsoft, and other U.S. hyperscalers.
This reflects a structural shift: Hong Kong's data-center market increasingly depends on mainland Chinese demand, with Alibaba, Tencent, and ByteDance emerging as the primary customers.
Structure Research senior analyst Jason Zhou noted: "Hong Kong is positioning itself as a super-hub serving Chinese demand." The Sha Ling site sits next to Shenzhen — a natural fit for mainland hyperscalers.
Why is this loan a litmus test for Hong Kong's data-center strategy?
Structure Research estimates Hong Kong's data-center capacity will double to over 1,100 megawatts by 2030, requiring at least US$7 billion in investment.
Range founder Zhou Chaonan saw his net worth briefly top US$10 billion this year; the company's market cap neared US$15 billion, with ByteDance's TikTok among its key clients.
Yet Range is virtually unknown outside China, and this loan is its first major international financing attempt. This means → if even a company with a proven mainland track record cannot secure funding, Hong Kong's broader plan to convert Chinese capital into real data-center construction faces serious doubt.
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