Govt launches tender for Northern Metropolis data hub site using two-envelope approach

The government on Friday invited open tenders for the sale of the Sandy Ridge Data Facility Cluster site in the Northern Metropolis, adopting a "two-envelope" approach for the first time in such a development. The tender submission period will close on December 31 this year.

Under the two-envelope system, proposals will be evaluated based on both non-price and price criteria, with a significant 70 per cent weighting assigned to the technical and qualitative merits of the non-premium proposal. The remaining 30 per cent will be allocated to the land premium offer.

A spokesperson for the Innovation, Technology and Industry Bureau stated that this method allows for a comprehensive assessment to select the proposal that best unleashes the site's potential.

The successful tenderer will be required to enter into a service deed with the government. This legally binding document will incorporate the commitments made in the winning bid, facilitating ongoing government monitoring of its implementation.

Specific provisions within the tender documents have been designed to ensure the site's primary use remains a data facility cluster.

The site, with an area of approximately 116,365 square meters and situated near Lo Wu, is currently being rezoned to "Other Specified Uses" with the annotation "Innovation and Technology." It is a key component of the government's vision to develop Hong Kong into an international I&T centre.

The plot can yield a maximum gross floor area of 250,000 square metres, with a requirement that no less than 70 per cent must be dedicated to high-tier data centre use.

The Sandy Ridge Data Facility Cluster is envisioned to provide advanced computing facilities to propel the growth of data and artificial intelligence-related industries in the city.