Hong Kong Aims To Become Global Data Hub Through AI Initiatives

Hong Kong's ambitions to position itself as a global data hub received significant endorsements from government officials this past weekend. Secretary for Innovation, Technology and Industry Sun Dong articulated the government's commitment to leveraging artificial intelligence (AI) for high-quality development.<\/p>\n

During a radio program on Sunday, Sun noted the transformative potential of AI on human life and the necessity for the city to embrace these changes. "Despite facing severe challenges in public finances, the SAR government is determined to implement measures in AI, reflecting its responsibility for future high-quality development," he stated.

The government's budget proposal for 2025/26, announced on February 26, earmarked HK$1 billion for the establishment of the Hong Kong AI R&D Institute, which is expected to start operations as early as next year. The institution aims to facilitate notable advancements in algorithms and technology, promote data sharing—including cross-border data flow with mainland China—and attract international data to firmly establish Hong Kong as a data hub.

Sun emphasized the importance of promoting new industrial development alongside modernizing traditional industries. He announced the approval of the first application under the New Industrialization Acceleration Scheme, which supports the setup of smart production facilities. This move is expected to bolster economic diversification and encourage innovative practices within various sectors.

Reflecting on the startup ecosystem, Hong Kong has seen the number of startups soar to 4,700, showcasing over 10 percent growth compared to the previous year. Sun indicated this growth signifies the city's appeal to entrepreneurs and innovators, fostering hope for attracting even more talent.

To solidify its status as an international innovation and technology center, Sun contended the city needs to nurture star enterprises. The government has unveiled the I&T Accelerator Pilot Scheme, which aims to provide funding matches for businesses, enticing experienced startups to establish their bases locally. He added, "It is important to prioritize high-value-added and distinctive projects, hence overcoming funding and land challenges stemming from previous industrial policies affecting the investment climate."

Meanwhile, Hong Kong marked another milestone with the launch of the HKGAI V1 large language model (LLM) on February 25. This model, the first of its kind developed locally, was trained using native data from the city, with assistance from Chinese AI firm DeepSeek. Sun expressed optimism about its application across various fields, which aligns with the goal of fostering AI innovation.

Financial Secretary Paul Chan Mo-po also underscored the importance of AI during his blog post on Sunday, asserting it should be promoted as a key industry for Hong Kong. Chan advocated for the adaptation of international changes through innovation, stating, "Developing AI as a key industry will allow us to break free from outdated development models and frameworks, creating new job opportunities and increasing income through new economic growth points, thereby leading to diversification and higher-level development of our industries."

He highlighted Hong Kong's advantageous position, benefiting from its 'one country, two systems' policy, which facilitates combining data from the mainland and the global community. He underscored the city's strong research capabilities derived from its five global-top universities, which equips it to advance AI research and applications effectively.

Chan also pointed out the importance of talent cultivation, citing plans to organize over 100 local cutting-edge technology and startup companies to connect with primary and secondary schools. The initiative aims to create interactive exchanges and field visits, allowing students to engage directly with technology products and experience firsthand the integration of coding and AI technology. "This approach will enable students to ‘see and touch’ the applications of AI, inspiring their participation," he said.

Major tech firms, including Tencent, Alibaba, Lenovo, and SenseTime, have shown strong support for the initiative, promising to collaborate with schools and startups to cultivate the next generation's talent. The Hong Kong Science and Technology Parks and Cyberport are also positioning themselves to coordinate numerous tech startups to get involved.

With these strategic efforts by the Hong Kong government and the burgeoning support from the tech community, the city is on its way to transforming its economic structure and becoming a pivotal data hub on the world stage.