Data Hk and the PDPO

Data Hk and the PDPO

data hk

Data hk is a key component of Hong Kong’s strategy to become a regional hub for data centre operations. The city’s legal framework, reliability and superior industry-specific infrastructure make it one of the most desirable locations for data centre operations despite its relatively high land prices. Mainland operators are restricted by mainland restrictions on the transfer of data out of the mainland, but Hong Kong has no such limits and is poised to be one of the main destinations for the flow of mainland data.

The PDPO defines personal data to include any information relating directly or indirectly to an identified or identifiable individual. This definition is in line with other legislative regimes, such as the Personal Information Protection Law that applies to mainland China and the General Data Protection Regulation that applies in the European Economic Area. A mooted change to the definition would expand the scope of the PDPO to allow for the inclusion of data that is not identifiable but could be used to infer such information – and would thus catch more types of data transfers than the current definition.

A data user who discloses or transfers personal data without the data subject’s consent is guilty of an offence under PDPO. A data user must also obtain the voluntary and express consent of a data subject before he can transfer the personal data to a class of persons that is not set out in the PICS or for a purpose that is not specified in the PICS.

This is a significant limitation on the flexibility of a data transfer and may discourage broader cross-border transfers. It is therefore important for the PDPO to be updated to address these limitations.

Several industry organisations have expressed their views on the potential changes to the PDPO. These include the Greater Bay Area International Information Technology Industry Association and Institute of Big Data Governance (iBDG). GBAITA President and iBDG Founding Chairman Allen Yeung Tak-bun said that if the PDPO were amended to reflect these new requirements, it would be easier to cultivate homegrown talent in data analytics operations and demonstrate Hong Kong’s leadership on global issues in data ethics.

The spokesman for the Hong Kong Alliance for Data Ethics said that a well-established and robust data centre industry is crucial to Hong Kong’s future development as an international hub for data flows and a leader in global data ethics. The alliance will seek to attract more global leading companies and industry pioneers to the city, create a resource-sharing platform and accelerate the transformation of scientific research results into products and services, so as to build a digital economy that benefits all. In addition, the alliance will work with the Greater Bay Area authorities to promote data flows and explore digital infrastructure, as well as foster talent and nurture industry leaders.