Google has scrapped plans to build a datacentre in Hong Kong citing concerns over a lack of land for expansion.
Thewas to be based in the Kowloon area of the city and originally expected to be up and running by early 2013. Google predicted it would have employed 25 full-time staff, as well as numerous contractors.
A Google statement blamed the cancellation on the city's limited space for expansion.
"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."
The facility was one of three new Google datacentres in the region. The two other datacentres, a $300m facility inand a $120m installation in , are not expected to be affected by the cancellation of the Hong Kong build.
Google has had various disputes with the Chinese government, which has sovereignty over the city of Hong Kong, relating to censorship of search results and hacking.
However Google claims it remains committed to investing in Hong Kong, referencing the recent opening of a new Google office in the city and a partnership with the Chinese University of Hong Kong.
"We will continue to work closely with the government on this process, and will continue to invest and grow in Hong Kong."