Google scraps plans for Hong Kong data centre
The internet search giant has blamed a lack of space for future expansion as the main reason for the U-turn on its $300 million investment.
In an interview with zdnet.com, a Google spokesperson explained: “To keep up with the rapid growth in users and usage across the region, we need to focus on locations where we can build for economies of scale.
“Unfortunately, there is a lack of land for expansion in Hong Kong. We will continue to work closely with the government on this process, and will continue to invest and grow in Hong Kong.”
The data centre was meant to be built in Kowloon, creating at least 25 jobs and providing a substantial boost to the local economy.
The decision to scrap it has led to a regeneration of rumours of a rift between Google and the Chinese government. The bodies have come to blows about censorship of search results in the past.
In spite of this decision, Google has pressed ahead with plans to open data centres in Taiwan and Singapore. According to techweekeurope.co.uk, the company evaded concerns about a lack of space in Singapore by building its first ever two-storey data centre there.