Hub Power Company (Hubco) has delayed its proposed data center project because of high electricity and technology costs, significant infrastructure requirements, and uncertain financial returns, according to a Topline Securities research note issued after the company’s annual general meeting.
Hubco management said the project’s viability could improve if data centers were developed in dedicated zones with access to multiple grid connections.
The company indicated a preference for entering the market at a larger scale, with capacity of around 100 megawatts (MW), rather than starting with smaller facilities of 5-10 MW.
The comments highlight the infrastructure and cost challenges facing large-scale data center development, where reliable electricity supply and substantial upfront investment are important considerations.
However, there is no information on a revised launch date, estimated investment amount, or details of a final project structure.