Hong Kong's Record HK$478 Million Research Funding: AI Data Centers, Green Tech, and the Universities Leading the Charge

On July 29, 2026, Hong Kong's Research Grants Council (RGC) announced a record-breaking HK$478 million in funding for 12 university research projects under the Areas of Excellence (AoE) Scheme and Theme-based Research Scheme (TRS) for 2026/27 . This marks the highest number of supported projects and total funding in the history of these flagship schemes. Artificial intelligence (AI) featured prominently, appearing in more than a third of the successful proposals, and driving a major project aimed at slashing AI data center power consumption by up to 20% . City University of Hong Kong (HK$145 million), the University of Hong Kong (HK$119 million), and Polytechnic University (HK$107 million) received the largest shares of the funding .

The Record-Breaking Funding Round

The RGC funded 12 projects in total — four under the AoE Scheme (totaling HK$158 million, an increase of nearly 10% from the previous year) and eight under the TRS (totaling HK$320 million) . Participating universities also contributed matching funds of at least HK$78 million, bringing the total research investment to approximately HK$556 million . RGC Chairman Professor Timothy Tong noted that over one-third of this year's selected proposals involve AI applications, demonstrating the council's proactive alignment with national development strategies and Hong Kong's push for tech-driven economic development .

AI Powers a New Generation of Research

Of the 12 approved projects, four explicitly involve AI applications spanning healthcare, green technology, smart manufacturing, and business risk management . The most prominent AI-related effort targets a critical bottleneck: the soaring electricity consumption of AI data centers.

Cutting AI Data Center Power by 20%

Hong Kong's planned supercomputing complex is expected to become the city's single largest electricity consumer once completed in 2032 . Data centers already consume a growing share of Hong Kong's electricity — projected to reach 8% by 2030 . One funded project directly targets this problem, aiming to cut AI data center electricity use by up to 20% . The project, led by Professor Han Wang of HKU's Department of Electrical and Computer Engineering, is developing a "3D-Integrated Power Delivery Technology for Advanced AI Chip Modules" with an approved budget of approximately HK$49.88 million . Professor Wang explained that while people often focus on AI's computational power, "the limit of computing power is electricity." Currently, data center power delivery efficiency is only about 75%, meaning one-quarter of electricity is wasted before reaching the AI chips . Wang's team aims to shorten power transmission distances from 20-30 centimeters to the millimeter scale using 3D integration, potentially boosting efficiency to 90-95% . The impact of global adoption, Wang estimates, could be equivalent to saving the output of approximately 30 nuclear power plants .

Other AI-Funded Projects

• Intelligent Artificial Photosynthesis (PolyU-led, approx. HK$48.83 million) — uses AI-guided predictions to accelerate the development of green fuels .
• Managing AI Risk for Businesses in Hong Kong (PolyU-led, approx. HK$10.84 million) — develops an AI risk management framework for corporate governance .
• Centre of Smart Manufacturing (PolyU-led, approx. HK$47.88 million) — driven by multidisciplinary generative AI models for real-time collaborative decision-making .
• AI projects under the Strategic Topics Grant — including an AI solution for large-scale improvement of emotional health in older populations (RADIANCE) and a personalized multimodal AI platform for Parkinson’s disease management (PMAI-PD) .

Which Universities Benefited Most?

City University of Hong Kong (CityUHK) topped the list with approximately HK$145 million in total funding, securing three flagship projects — a record for the university under these schemes . The University of Hong Kong (HKU) received around HK$119 million, and Polytechnic University (PolyU) received HK$107 million . PolyU, in particular, secured four funded projects totaling over HK$124 million, including two interdisciplinary AI projects under the TRS . Hong Kong University of Science and Technology (HKUST) and Chinese University of Hong Kong (CUHK) also participated in multiple projects, with HKUST leading efforts in sustainable AI data centers and other initiatives .

What This Means for Hong Kong's AI Future

The RGC funding signals Hong Kong's strategic pivot toward AI as a cornerstone of its research ecosystem. Professor Tong confirmed the council currently has no plans to split AI into a separate funding category, but will continue to evaluate whether adjustments are needed . The focus on practical, high-impact areas — energy efficiency, green technology, healthcare, and risk management — positions Hong Kong's universities as key players in global AI research, while directly addressing one of the industry's most pressing challenges: the energy cost of AI at scale.

For researchers and institutions, the funding round also sets a clear benchmark: projects that combine AI with real-world applications — especially in energy, manufacturing, and health — are most likely to attract substantial support.