Hong Kong Exchanges and Clearing Limited (HKEx) is set to start implementing a plan for a next generation data centre to meet its business expansion needs and its markets’ long-term development needs.

HKEx has received approval from Hong Kong Science & Technology Parks Corporation to acquire an 11,000-square-metre site in Hong Kong’s Tseung Kwan O Industrial Estate for the project. Under its preliminary plan, HKEx intends to construct a three-storey data centre and information technology (IT) office space with a total floor area of 143,000 square feet.

The data centre will consolidate the primary data centres for all HKEx’s markets and clearing houses systems, as well as certain IT development and support staff. HKEx currently has primary data centres in two separate locations in Hong Kong and backup centres in three other locations in the city.

HKEx aims to take possession of the site in the first half of this year. The data centre for HKEx’s securities market will be relocated approximately 26 months after site possession, so its relocation is expected to be completed around mid-2012. The data centres for HKEx’s derivatives market and clearing houses will be relocated in the 12 months following relocation of the data centre for the securities market. The tentative target period for completion of the entire project is the middle of 2013.

The preliminary cost estimate, which covers land premium and costs for construction, facilities, office fittings, relocation and technology upgrades, is approximately $700 million over the next three years. However, the building and facility design and other details are not yet final so the cost estimate will be subject to change. HKEx will fund the project with its internal resources.

HKEx has also recently announced its Strategic Plan for 2010-2012 that will help it adjust the developing competitive landscape and enable it capture more business in mainland China. HKEx has detailed three core strategies, which include organic growth of its current business, preservation of its current position, and an expansion of its services over the next two years.