Due to high operating costs and real estate problems, Google has reportedly cancelled its plan to build a new data center in Hong Kong.

Google previously announced plans to spend USD300 million to build a new data center in Hong Kong to supplement those in Taiwan and Singapore which are currently being constructed. If this data center was set up, Google's service speed in Asia would be increased by 30%. Google's traffic in Asia recently saw significant increases, especially on smartphones.

Google's website for its Hong Kong data center has now been closed. Google said in a statement that they see huge opportunities and potential in Hong Kong and opened a new office in the city while enhancing their recruitment. Recently, the company reached an agreement with the Chinese University of Hong Kong for future talent training. However, the company decided not to continue its data center plan in Hong Kong.

Google said to coordinate the fast user and traffic growth in Asia, the company needs to realize a scale economy in the local market. Unfortunately, they do not have enough land to build the data center in Hong Kong. The company will continue its close cooperation with the local government and will continue its investment and development in Hong Kong.

According to Google, its data centers in Taiwan and Singapore will be launched in 2014.