A Mainland China data technology services company is poised to expand into Southeast Asia from its Hong Kong base, bolstered by support from the Hong Kong Trade Development Council (HKTDC).
Founded in 2023 in Guangzhou, NZData operates Hong Kong’s only marketplace platform that connects data centres around the world to clients seeking flexible access to computing power, eliminating the need for costly infrastructure investments.
In addition to its core platform, the company provides scheduling software for clients to manage computing power leases and improve data security and helps data centre providers build their own computing power platforms.
Notably, the firm counts leading global players, such as Nvidia, among its partners.
Scaling up with T-box help
With an eye on overseas expansion, in November 2023, the company identified Hong Kong as a strategic gateway to international markets.
However, with limited understanding of the procedures and regulations involved in setting up a company in the city, the business lacked a clear action plan.
This is where the HKTDC’s Transformation Sandbox (T-box) onboarding and advisory services proved decisive.
T-box equipped NZData with crucial insights into doing business in Hong Kong and connected them with professional legal, accounting and financial service providers to complete the business registration process and advise on their taxation and legal responsibilities.
Within weeks, the firm successfully opened its Hong Kong office in Cyberport, a thriving technology hub that is home to over 2,200 tech companies.
NZData’s Chief Data Architect Tide Lv said they chose Hong Kong as the base for its international expansion due to the city’s role as a gateway connecting Mainland China to the rest of the world.
“Hong Kong is the world’s freest economy and a leading international finance centre with open access to capital and deep diversification,” he said. “The city’s culturally inclusive environment attracts many top international enterprises and nurtures a large number of SMEs, making it an ideal setting for our business growth.”
Since setting up in the city, the business has undertaken several large-scale projects including working with the Hong Kong Association of Environmental Professionals to provide technical support for a food waste analysis system.
Through implementing an AI computing system to automate waste sorting, the firm helped reduce manpower by 50%, while improving efficiency by nearly 6 to 7 times.
Transforming through ESG
Following its Hong Kong launch, NZData continued to build momentum with strategic support from T-box.
The programme’s ESG stream – which helps businesses in their ESG transformation – inspired the company to adapt quickly to its Hong Kong clients’ ESG needs.
For instance, traditional data centres can no longer meet the needs of enterprises, both operationally and environmentally, according to Mr Lv.
By sharing idle computing resources through NZData’s platform, businesses can boost the efficiency of their data usage by up to 70%, while cutting energy consumption and carbon emissions.
Following T-box’s advice, the company qualified to join the Hong Kong Quality Assurance Agency and earned the agency’s ESG Connect mark in May last year.
The endorsement demonstrates the business’s excellence in operating green data centres and helps it stand out as a responsible and green tech enterprise.
Seizing new frontiers in Southeast Asia
With an eye on the soaring demand for computing power in the booming digital economies of Southeast Asia, NZData has recently turned its attention to Singapore and Vietnam for its next expansion phase.
However, lacking familiarity with local regulations and access to seasoned partners, the company found itself without a clear roadmap.
That’s when our T-box team stepped in once again, crafting a three-pronged strategy to guide the business’s expansion plans.
First, we advised the firm to secure an original software it had developed with a Canadian partner for managing AI computing pools.
To protect its proprietary technology, T-box advised the company to apply for a patent and helped them secure a Patent Application Grant offered by the Hong Kong SAR Government’s Innovation and Technology Commission.
The grant was approved in November, and the patent was swiftly registered.
With the patent in place, NZData took confident steps towards international expansion, applying for additional patents in Singapore and Mainland China earlier this year.
Second, to prepare for entering Southeast Asian markets, the T-box team shared useful market information with the firm, including business guides, industrial park profiles and investment opportunities.
The company also participated in a T-box workshop on exploring ASEAN business opportunities, where staff met experts from different sectors and gained insight on regional expansion possibilities.
Finally, in April, T-box facilitated NZData’s participation in InnoEX – a trade fair organised by the HKTDC and the Hong Kong SAR Government.
As a premier platform for cutting-edge solutions, InnoEX enabled the company to connect with investors and buyers from around the world, especially from Southeast Asia.
In addition, the firm participated in HKTDC’s Start-up Express incubation programme and had the opportunity to engage with fellow innovators.
Leveraging the support provided by HKTDC initiatives and Hong Kong SAR Government funding schemes, NZData’s move to Hong Kong has unlocked far greater opportunities than expected.
“Beyond being a superconnector linking mainland enterprises to overseas opportunities, having a presence in Hong Kong adds flexibility in today's complex trade landscape,” Mr Lv said.
“It also provides a reliable haven for our mainland customers, helping them minimise geopolitical risks and enabling sustainable business growth."