NTT Communication's Hong Kong unit is building its first financial data centre in one of the financial hubs of Asia.
Optimistic of prospects in the financial markets, NTT Com Asia said the data centre is being built in Hong Kong to offer the financial hub an IT infrastructure that is physically near the markets and suited to the technology needs of those markets.
The proximity of the data centre to its intended users assure them of low latency which is ideal for electronic trading. The NTT financial data centre will be built next to the Hong Kong Exchanges and Clearing Limited's (HKEx) Next Generation Data Center which is currently under construction in Tseung Kwan O.
"NTT Communications Hong Kong Financial Data Centre's unique features of proximity to the stock exchange, its ultra-low latency solution and tier IV-ready infrastructure will play a critical role in enabling the financial community to stay ahead of the game and accelerate growth in the Asia market," said Takanobu Maeda, president & CEO, NTT Com Asia.
The cable landing station of NTT Communications' Asia Submarine-cable Express (ASE) is also co-located with the network node of the data centre's global network, and this contributes to ultra-low latency among the Hong Kong, Singapore and Tokyo financial hubs. The connection is further extended to the U.S. with PC-1, the undersea cable with shortest route between the U.S. and Japan.
Hong Kong, as one of the financial hubs in the Asia Pacific region, is home to a vibrant financial market, including high frequency trading (HFT), which accounts for up to 70 percent of turnover in U.S. equity markets. HFT is also said to be rapidly growing in Europe and Asia.
As such Asian hedge funds, investment banks, and other institutional investors are upgrading their IT infrastructure and adapting trading strategies to keep up with competition.
The Hong Kong government takes pride in Hong Kong's geographic advantage in the region, making it an ideal location for the data centre, which will occupy 30,000 sq m of land.
"Hong Kong has significant advantages to be the prime location for data centres in the Asia Pacific region. Our institutional and geographical advantages, including proximity to the mainland, business-friendly environment, sound protection of data privacy, reliable power supply, comprehensive telecommunications infrastructure, sophisticated submarine and overland cable systems for international communications, and low risk of natural disasters, put us in good stead," said Elizabeth Tse, permanent secretary for commerce & economic development (communications & technology), Hong Kong Special Administrative Region (HKSAR).
"I am confident that Hong Kong will be able to meet the current and future challenges in the highly competitive global environment. And we all will keep up with the good work as a leading financial, trading and logistics hub in the region," added Tse.
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