Americas Data Center H2 2024 Update

PORTLAND + EASTERN OREGON AMERICAS PRIMARY MARKET

HILLSBORO

THE DALLES

PORTLAND CBD

UMATILLA

KEY INDICATORS*

1,970MW In Operation

33MW 2024 Colo Leasing

236MW Under Construction

0.5% Colo Vacancy

PRINEVILLE

Colo

Hyperscale Self-build

*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.

ECOSYSTEM DEVELOPMENTS •

MARKET OVERVIEW Demand remains strong in Portland and Eastern Oregon, as indicated by an extremely tight vacancy rate of 0.5%. Though this market is primarily driven by hyperscale self-builds, the colocation market — at 535MW — is expected to double in the coming years. The current pipeline reflects this growth, with 730MW of colocation capacity in the planning stages, led by QTS, Aligned Data Centers and Stack Infrastructure. However, warnings of power constraints are materializing, contributing to the less colocation space currently under construction and the expanding planned colocation development pipeline. In response, PacifiCorp has introduced new power usage penalty rules for large-load customers in the Pacific Northwest, effective February 2025. These rules penalize users who deviate from their initially projected or requested power needs. Despite Oregon’s power challenges, demand drivers such as renewable energy, more affordable land prices, and proximity to west coast markets have continued to attract hyperscale and colocation providers. Power purchase agreements (PPAs) are still being signed, albeit to a lesser extent, despite concerns surrounding power availability and use. Both QTS and Meta recently entered a PPA with Avangrid and Portland General Electric for a 120MW solar energy project in Morrow County. With incentives like renewable energy, strong network connectivity, a resilient tech workforce and lower power cost, the market is primed for continued growth. However, new entrants to the market should be aware of increasing regulatory pushback to new data center developments, further highlighting the importance of sustainable construction and energy usage that benefit local communities. Significant opportunities remain for growth in the data center market across the state.

The Pacific Northwest Utilities Conference Committee ( PNUCC) projects a significant surge in electricity demand in the region, with an annual growth rate of 3.1% over the next decade, driven by the expansion of data centers and high-tech manufacturing. To meet this demand, utility providers plan to add 29GW of new capacity, and demand response programs are expected to double. • Avangrid and Portland General Electric (PGE) signed a PPA with QTS and Meta for a 120MW solar energy project in Morrow County, Oregon. The Tower Solar project will supply renewable energy to a new QTS data center campus supporting Meta's operations. It is expected to be operational by 2026 • PacifiCorp's new power usage penalty rules, approved by the Oregon Public Utility Commission, will take effect in February 2025. These rules penalize large-load customers, such as data centers, for deviating from their projected power needs. PacifiCorp aims to extend these rules to Utah and Washington • Aligned Data Centers topped out its PDX-01 data center in Hillsboro, Oregon. The 72MW facility, featuring a dozen 6MW data halls across 27 acres, will offer 100% renewable energy options and support air, liquid or hybrid cooling solutions. A second planned building, PDX-02, will add an additional 36MW of IT capacity.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW