Americas Data Center H2 2024 Update

AUSTIN + SAN ANTONIO AMERICAS SECONDARY MARKET

ROUND ROCK

KEY INDICATORS*

SOUTHEAST AUSTIN

331MW In Operation

523MW 2024 Colo Leasing

CASTROVILLE

325MW Under Construction

5.8% Colo Vacancy

Colo

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

Hyperscale Self-build

ECOSYSTEM DEVELOPMENTS •

MARKET OVERVIEW Austin and San Antonio are two rapidly growing markets with distinct characteristics, especially as Dallas faces increasing resource constraints. Hyperscalers tend to favor San Antonio, while colocation providers lean toward Austin. Market boundaries between the two cities have become less defined as the I-35 corridor, which runs through San Marcos and New Braunfels and connects Austin to San Antonio, has seen a considerable uptick in data center activity. Prime Data Centers has a significant facility planned between the two cities in Lockhart, and Tract recently announced the purchase of 2,000 acres of land near Prime to build a sizeable campus. Currently, operational commissioned capacity between the two markets totals 331MW. This is set to nearly double with ongoing construction projects, bringing the market to 656MW of operational commissioned capacity. With this growth, the region is on track to become a 1GW data center market. The planned development pipeline further signals this continued growth cycle, with 2.8GW of planned capacity. Historically, San Antonio’s data center development has concentrated in the western part of the city, while Austin’s growth has spanned from north to south. Both markets benefit from the same positive aspects that make Dallas attractive, including reasonable power costs, renewable energy options, tax incentives, and a business-friendly environment.

Sabey recently completed construction of the first building at its Round Rock campus. The newly completed building is 430,000 square feet, current plans for the campus include two buildings with 84MW of capacity when fully built. • Tract recently acquired 2,000 acres of land in the Uhland/Lockhart area of Texas about 30 miles southwest of Austin along the I-35 corridor. The site is in close proximity that Prime is going to develop into data centers. • Colovore is developing a new liquid-cooled data center in Hutto, Texas, with an estimated $500 million investment. The 180,000 sq ft facility, known as Project Raptor, is set to begin construction in early 2026. • San Antonio has been getting interest from colocation providers and CyrusOne, Vantage, and Stream all have active development projects in the market. • CPS Energy plans to spend over $1.3 billion on transmission and generation projects in the next five years to support the growth of data centers in Texas. With 15 new or upgraded transmission lines and a diverse energy mix, CPS is set to play a key role in the state's power infrastructure. • The Southern Spirit Transmission project will connect Texas' ERCOT grid with southeastern U.S. power grids, enhancing reliability and reducing outages during extreme weather events. This new link will allow Texas to maintain its grid independence while benefiting from increased power stability.

CUSHMAN & WAKEFIELD | AMERICAS DATA CENTER MARKET OVERVIEW