Americas Data Center H2 2024 Update

ORANGEBURG

NORTHERN NEW JERSEY + NEW YORK AMERICAS ESTABLISHED MARKET KEY INDICATORS*

SECAUCUS

MANHATTAN

567MW In Operation

43MW 2024 Colo Leasing

PISCATAWAY

40MW Under Construction

9.0% Colo Vacancy

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 The New York-New Jersey data center market continued to see demand and activity from data center users and operators given its proximity to New York City, robust infrastructure and favorable business climate. The largest availability in the market right now is located within 165 Halsey Street, offering 23.5MW, which would be deliverable within 12 months. DataBank also has 4MW remaining in Orangeburg. All other availabilities in the market are smaller than 3.2MW, with the majority of those below 1MW. Growth has eased, and the under-construction pipeline in the New York-New Jersey market currently holds 40MW of capacity, while the planned pipeline stands at 186MW. Preleasing activity is also not as strong in this market compared to others, with only 13% of the capacity under construction preleased and 0% of planned data centers preleased. Established operators with existing data centers account for more than half of the capacity under construction, as new development in the New York-New Jersey market now favors expanding current facilities over building new ones from the ground up. The largest expansions underway are being carried out by Equinix and Iron Mountain Data Centers. One thing the New York-New Jersey shares with other established markets is limitations surrounding power and land. These constraints continue to pose a significant challenge to hyperscalers, who are looking farther inland toward the Midwest, where those challenges, while still present, are less pronounced. However, New Jersey is well-positioned to benefit from nuclear power, as several utility companies owning nuclear power plants are exploring energy deals with data centers through local utilities, including Public Service Enterprise Group (PESG) and Jersey Central Power & Light (JCP&L) which serves most of the northern New Jersey market.

365 Data Centers and InterServer announced a strategic partnership to enhance their IT infrastructure solutions, particularly in New Jersey. This collaboration leverages 365's network of 20 data centers, including locations in Carlstadt and Bridgewater, and InterServer's expertise in web hosting and cloud services, with the goal of expanding their presence in the region. • CoreWeave is expanding its data center footprint in New Jersey by leasing the entirety of Building 11 at The Northeast Science & Technology Center (NEST) in Kenilworth, Union County. The company plans to invest $1.2 billion to convert the 280,000-sf former lab and manufacturing building into a data center, with additional investments from Onyx Equities. This project aims to position the NEST campus as a major hub for data processing, AI, and biopharma innovation. • During a recent New Jersey hearing on electricity prices , experts discussed the impact of growing electrification, electric vehicles, and data centers on the state's energy needs. They emphasized the importance of avoiding policies that shut down power plants before replacements are ready and suggested investing in technologies like carbon capture to manage rising demand • PSEG is in talks to sell power from its Hope Creek and Salem nuclear plants to data centers in New Jersey. This move aims to provide highly reliable, carbon-free baseload power to support the state's growing AI and data center industries. The Hope Creek and Salem plants, with a combined capacity of 2,486MW, are well-positioned to meet the increasing power demands of mid-sized data centers, ranging from 50MW to 100MW.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW