There is no denying Hong Kong is a densely populated business hub and Google wanted to build a datacenter to improve service to its 8 million population. Now we learn that those plans have been axed due to real estate issues.

In The Next Web (link), Google said :

"While we see tremendous opportunity and potential in Hong Kong – we’re actively hiring, just opened a larger office and recently launched a partnership with the Chinese University of Hong Kong to invest in tomorrow’s innovators – we will not be moving ahead with this project. To keep up with the rapid growth in users and usage across the region, we need to focus on locations where we can build for economies of scale. Unfortunately, there is a lack of land for expansion in Hong Kong. We will continue to work closely with the government on this process, and will continue to invest and grow in Hong Kong."