In an update of Hong Kong's Digital 21 strategy, the acting SCED said, the estimated non-recurrent government expenditure of computerisation in 2011-12, would amount to HK$1.74 billion (US$223 million) - 45 per cent above the revised estimate of HK$1.2 billion (US$154 million) in this financial year.

"I believe the increased provision will create a lot of new business opportunities to the IT industry," So said. "And the estimated expenditure of the Office of the Government Chief Information Officer (OGCIO) will also increase 14 per cent."

The acting SCED told the committee that the government "is exploring appropriate measures to facilitate the development of more high-end data centres in Hong Kong, with a view to entrenching Hong Kong's position as a trade and financial hub, maintaining Hong Kong's competitiveness in the Asia Pacific and promoting sustainable economic development".

"In a knowledge-based economy, data centres constitute an essential part of the infrastructure," the acting SCED said. "Recently, many international IT companies have also set up largescale high-end data centres one after another in the Asia Pacific region, generating increasing demand for such services."