ASIA PACIFIC DATA CENTRE CAP DECK

ASIA PACIFIC DATA CENTRE ADVISORY OUR CAPABILITIES & MARKET INSIGHTS

Q2 2024

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

Updated 8 October 2024

We are a leading and one of the largest commercial real estate services firms globally that deliver exceptional value for our clients.

$9.5B REVENUE (2023)

NYSE CWK

60 COUNTRIES

400 OFFICES

52K EMPLOYEES

OUR OPERATING MODEL

We operate as one integrated advisory team with regional & global collaboration. This allows us to have a consistent & efficient data centre service delivery model that provides enhanced & integrated solutions for our clients across Asia Pacific.

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ADVISORY LED APPROACH Helping our clients turn data in insights & insights into action

OPERATIONAL EFFICIENCY Clear operational structure & metrics to expedite internal processes for achieving growth for our clients CLIENT COVERAGE Account-based approach to create significant value & exceptional experience for our clients

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CONNECTIVITY & COOPERATION Cross-regional & global platform to reflect the way clients are increasingly procuring data centre services

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CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

 APAC LOCAL MARKET LEADS

OUR PEOPLE

ALEX MOFFATT Australia

JOHN SIU Hong Kong, China

Our Asia Pacific Data Centre Advisory Team (APAC DCAT), as part of our Global Data Centre Advisory Group, has created optimal solutions and location strategies to address highly complex IT requirements for enterprise clients across the region and globally since 2004. Our multi-disciplined team, consisting of experts across a spectrum of advisory services, focus specifically on the data centre market for seamless delivery. Every client requirement is unique; we have the experience to develop long-term strategies that drive wise investment decisions for enterprise users, colocation providers, hyperscalers, sector investors and developers. CONFIDENTLY GLOBAL, EXPERTLY LOCAL Click on each name to email them  ASIA PACIFIC DATA CENTRE TEAM

ANDREW CHAN Chinese Mainland

DAVID CHEN Taiwan, China

SHIVANI JADON India

WIRAAGUS Indonesia

KOSUKE OGI Japan

JOHN PRITCHARD South Korea

VIVEK DAHIYA Head of Asia Pacific Data Centre Team

TODD OLSON Executive Sponsor,

REBECCA JUNG Associate Director, Data Centre Business Development, Asia Pacific

APAC DCAT & Managing Director, Japan & Korea

TIFFANY GOH Malaysia

TODD HANRAHAN New Zealand

KUSHALAPPA KP Director, Data Centre Strategic Consulting & Insights, Asia Pacific

JAMES NORMANDALE Alternative Assets Lead, Project & Development Services, Asia Pacific

GORDON MARSDEN Head of Capital Markets, Asia Pacific

THERESE CASTRO Philippines

BRENDA ONG Singapore

CHRIS CUFF Data Centre Account Management, Asia Pacific

AMY KATHLEEN KELLY Associate Director, Data Centre PR & Media, Asia Pacific

 GLOBAL

 EMEA

 AMERICAS

JOHN MCWILLIAMS Head of Data Centre Insights, Research Manager

ANDREW FRAY Head of EMEA Data Centre Advisory Team

JESSICA HOWE Vice President, Global Growth Verticals

GARETH POWELL Thailand

TRANG BUI Vietnam

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

OUR SERVICES

THE ENTIRE DATA CENTRE REAL ESTATE LIFE CYCLE

We have helped our clients navigate the real estate and IT challenges that come with managing their data centre strategies across the entire data centre real estate cycle. Focused on technical requirements and best practices, we undertake strategy, benchmarking and lifecycle cost analysis across each engagement to find opportunities that will drive down operation costs, while advising on real estate strategies that position you for what’s next.

CLIENT TYPES

 ENTERPRISE USERS  COLOCATION PROVIDERS  HYPERSCALERS  SECTOR INVESTORS  SECTOR DEVELOPERS

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

OUR SERVICES

OUR DATA CENTRE SUSTAINABILITY SOLUTIONS Our sustainability solutions for data centres are focused on helping you align with corporate net zero targets, mitigating carbon emissions, providing access to clean energy, drive uninterrupted operations, bringing cost savings and attracting investors. We can integrate sustainability solutions across these four key stages of the data centre real estate lifecycle:

MATT CLIFFORD Head of Sustainability & ESG, Asia Pacific

 SITE SELECTION

 REPORTING Monitor energy/carbon/water usage & efficiency performance and report against goals, commitments, KPIs

 OPERATIONS Energy, carbon, water & waste strategy - audit site, develop Net zero, decarbonization, resource efficiency road mapping & implementation

 DESIGN & CONSTRUCTION

Climate risk assessment - during site selection and while in operations

ESG considerations in procurement and contractor selection Tracking that sustainability related design elements are monitored and delivered

Adaptation and mitigation plans, periodic reporting on current and future climate risk

For funds: GRESB advisory

Certifications: LEED, EDGE

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

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MARKET INSIGHTS

A FORCE FOR ACTION

Asia Pacific * has briskly moved towards 11.6GW of operational capacity with 1.3GW of new capacity added in H1 2024.

~85% of operational capacity is concentrated in the region’s top 6 markets – Chinese Mainland ( 4.2GW), Japan (1.4GW), Australia (1.2GW), India (1.4GW), Singapore (0.98GW) & South Korea (0.65GW)

ASIA PACIFIC DATA CENTRE MARKET UPDATE – H1 2024

At an overall stock level, Tokyo , with 2.7GW (existing & committed pipeline) is very close to Beijing (2.9GW), followed by Sydney (2.0GW) and Shanghai (2.0GW) being only four cities in the region

The operational capacity of Asia Pacific’s* data centre markets has moved closer towards the 12GW mark during H1 2024, having added about 1.3GW of new supply, recording the largest addition of scale in recent times. An equivalent quantum of absorption scale has also been observed during this period, indicating parity between demand and supply dynamics in the region, which is a very healthy indicator of continued growth. Development pipeline quantum is at 4.2GW of under construction activity throughout the region and 12.1GW in planning stages, which is an increase of 2.8GW since end of H2 2023. Out of the 14 markets within the Asia Pacific region, the top 6 markets contribute up to 85% of the operational capacity within the region. Chinese Mainland (4.2GW), followed by Japan (1.4GW), India (1.4GW), Australia (1.2GW), Singapore (0.98GW), South Korea (0.65GW) not only have the largest operational capacity, but also have robust development pipeline and planned capacities, with both Hong Kong, China (0.58GW) and Malaysia (0.35 GW) also trying to catch up with these top 6 markets. Malaysia (mainly due to Johor) has observed the highest increase in operational capacity at 80%, between H2 2023 and H1 2024, followed by India at 28%. Both markets have similarly observed highest growth in development pipeline indicating that both these markets are expected to witness continued growth in the next few years.

Sydney has scored the highest ranking in terms of market maturity, considering single digit vacancy levels, being the third largest market, (along with Shanghai), after Beijing & Tokyo in terms of overall stock and scoring the highest in terms of build capacities.

with >2GW (existing & committed) capacities.

Johor (1.9GW) & Mumbai (1.8GW) are the two cities

which are rapidly playing catch up with the top four cities to breach 2GW capacity (existing & committed) sooner than later.

Malaysia remains the fastest growing market in the region. With Johor (231 MW) contributing to the operational capacity of the market, along with 0.9GW towards planned capacities of that market.

VIEW LATEST UPDATE

*For all analysis, Asia Pacific region includes Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam only.

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

SIGNATURE DATA CENTRE THOUGHT LEADERSHIP Cushman & Wakefield is a leader in first-to-market data centre thought leadership with quality market intelligence released regularly each year. We have a number of signature reports that will provide data centre operators, developers and investors insights to help develop their data centre strategies across Asia Pacific.

Asia Pacific Data Centre Market Updates (Biannual publication) This biannual update released at the end of H1 and H2 of each year, provides a comprehensive summary of Asia Pacific’s data centre market, features our Asia Pacific Data Centre Market Maturity Index that forecasts the potential evolution of 30 markets across the region and an in-depth analysis that highlights 12 notable markets.

Asia Pacific Data Centre Construction Cost Guide (Annual publication) Cushman & Wakefield’s inaugural Data Centre Construction Cost Guide 2023/24 provides a comprehensive analysis of both land purchase and data centre construction costs across Asia Pacific, as well as a schedule of land banking rates and a summary of key trends within the sector.

Global Data Centre Market Comparison (Annual publication) Our annual Global Data Centre Market Comparison assesses over 60 data centre markets across the globe, within 13 different categories, including fiber connectivity, market size, cloud availability and others, to determine the top overall markets at a global and regional level, along with the top performers in each category.

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CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

MARKET INSIGHTS

AUSTRALIA Australia boasts a global primary market in Sydney and Melbourne and expanding edge locations such as Perth and Darwin that serve as landing stations for regional undersea cables. Two new cable systems will be completed in Brisbane over the next few years, connecting the city to the east coast of Australia, Singapore, Indonesia, New Zealand, Hawaii and Los Angeles. The relative lack of land constraints will serve Australia well in coming years as other large regional markets work through these difficulties. Local enterprise and government users have rapidly absorbed new capacity brought to market.

Q2 2024 KEY INDICATORS

41 OPERATORS, 146 DATA CENTRES

1,230MW IN OPERATION

384MW UNDER CONSTRUCTION

1,664MW PLANNED

Local enterprise and government users have rapidly absorbed new capacity brought to market.

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

PRIMARY MARKETS SYDNEY | MELBOURNE

SECONDARY MARKETS PERTH | DARWIN | CANBERRA | BRISBANE

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

NATIONAL PENSION SERVICE OF KOREA Location

OUR TRACK RECORD

Fujitsu Western Sydney Data Centre

Service

Disposal advisory

Date

2023

Value

AU$41M

Power

92MW at full build (10MW currently live)

Size

17,000m 2 total building area

Our logistics and industrial Capital Markets team in Sydney, represented the vendor in the sale of the Fujitsu Western Sydney Data Centre as part of a 50% stake in a premium industrial property portfolio deal worth over AU$500M. Acquired by UniSuper, a national superannuation fund, the 20-property portfolio included 12 assets located in the Quarry Industrial Estate in Greater Western Sydney where the data centre is located, and the remainder located in Truganina, Melbourne. The global process identified multiple participants looking to capitalise on a rare, high-quality industrial portfolio offering in Australia, which was underpinned by a strong tenant profile including companies such as Coles, Toll, Northline, Roche, Blackwoods, Symbion, and UPS.s

CONTACTS Click on each name to email them

TOP FOUR NATIONAL BANKING INSTITUTION Location Sydney

ASIA PACIFIC DATA CENTRES GROUP Location

Melbourne (M1), Sydney (S1), Perth (P1)

ALEX MOFFATT Director, Alternatives Capital Markets, Australia

Service

Facilities management Sustainability services

Portfolio disposal advisory

Service

Date

2018

Date

Ongoing since 2011

Value

AU$163M

TONY IULIANO International Director - Head of Logistics & Industrial, ANZ

Power

3MW

Power

37MW total across three data centres

Size

120,900sqft NLA (11,232m 2 )

Size

46,893m 2 total building area

STEWART ARMSTRONG Associate Director, Client Services, Project Management JOSH PHEGAN National Industrial & Logistics, Valuation & Advisory

Following on from a previous contract, the client re-engaged our services for another 5-year term with exclusive extension terms negotiated for another 2 years. Both contracts involved the facilities management of mission critical infrastructure, including capacity management and environmental reporting to ensure efficient operations, such as tracking the energy, water and waste consumption of the property, and the PUE. Several energy efficiency upgrades were also completed, including decommissioning the trigeneration system, lighting upgrades, installation of PV solar and rainwater harvesting systems.

The portfolio was strongly contested and acquired by NEXTDC who held a 29.2% interest and were also the sole tenants of the three facilities under long-term lease arrangements. The acquisition was in line with NEXTDC’s plans to build out their significant pipeline of data centre developments across Australia.

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

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MARKET INSIGHTS

GREATER CHINA Greater China, which includes Chinese Mainland, Hong Kong and Taiwan, is a large global data centre market, with massive primary locations in Beijing, Shanghai, and the Greater Bay Area, and an array of secondary cities with their own large-scale capacity. Chinese hyperscale services provide the bulk of the tenancy in core markets, though telcos continue to operate a large number of data centres. Financial institutions, large-scale manufacturers, and state-owned enterprises are embarking on their own journeys to the cloud or a hybrid IT structure, with development swelling to meet these needs. Appetite for services continues to grow, although power availability is a concern moving forward for the larger builds.

Q2 2024 KEY INDICATORS CHINESE MAINLAND

TAIWAN, CHINA

HONG KONG, CHINA

9 OPERATORS, 39 DATA CENTRES

33 OPERATORS, 243 DATA CENTRES

22 OPERATORS, 48 DATA CENTRES

246MW IN OPERATION

4,199MW IN OPERATION

584MW IN OPERATION

50MW UNDER CONSTRUCTION

714MW UNDER CONSTRUCTION

235MW UNDER CONSTRUCTION

120MW PLANNED

1,602MW PLANNED

308MW PLANNED

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

PRIMARY MARKETS BEIJING | GUANGZHOU | HONG KONG | SHANGHAI | SHENZHEN

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW SECONDARY MARKETS TIANJIN | CHONGQING | CHENGDU | HANGZHOU | NANJING | TAIPEI

CHUNGHWA POST DATA CENTRE Location Taoyuan City, Taiwan Service

ZOOMLION Location

OUR TRACK RECORD

Changsha, Hunan

Service

Landlord representation for leasing

Project and construction management

CONTACTS Click on each name to email them

Date

Date

2024

Ongoing till 2024

Power

Power

8MW

3MW

Size

Size

180,000sqft

182,986sqft (data centre only)

JOHN SIU Managing Director, Hong Kong

Cushman & Wakefield was consigned by Chunghwa Post to advise them on completing the public tender process for leasing its data centre project in Taoyuan, Taiwan. Following an extensive market research, an overall adjustment of the leasing conditions and the coordination of the electricity acquisition, the Chunghwa Post data centre was successfully leased by a regional data centre service provider. This 20-year lease is the first successful leasing case of its kind initiated by the government-owned company.

Partnering closely with Zoomlion and HENN Architects, Cushman & Wakefield China have been commissioned to oversee the construction of the client's new headquarters, including their Greater China central data control centre. This iconic project is a central feature of Changsha City's smart industrial and high-tech city plan. Appointed to project manage the greenfield shell + core construction and internal fit-out of this exciting space, the project is currently under construction and is due to complete in 2024.

ANDREW CHAN Managing Director, Head of Valuation & Advisory Services, Greater China SUMMER CHEN Senior Associate Director, Valuation & Advisory Services, Greater China RICKY WONG Executive Director, Capital Markets, Hong Kong

BIG DATA EXCHANGE (BDX) Location

CENTRAL INDUSTRIAL BUILDING Location

Kwai Chung, Hong Kong

Kwai Chung, Hong Kong

Service

Service

Tenant representation for lease acquisition

Site acquisition & property valuation

Date

Date

2023 and 2024

2021

Power

10MW + 2MW

24,336sqft (site area) 277,430sqft (data centre redevelopment)

Size

EVA DENG Associate Director, Capital Markets, China

Size

192,000sqft in three phases

DAVID CHEN Assistant Manager, Valuation Services, Taiwan

Cushman & Wakefield was engaged by BDx in the lease acquisition of their third DC site in Hong Kong for business expansion. Following an extensive market search and thorough technical evaluation of several shortlisted building options, BDx decided to kick off the negotiation for pre-leasing the major portion of a brand-new industrial building developed by Sino Land for data centre conversion. Following an intensive 18-month lease negotiation and legal documentation process, both BDx and Sino Land entered into a legally binding agreement prior to the occupation permit of the building. The transaction was the biggest of its kind in Hong Kong at the time.

Despite strong competition from various buyers and the tight completion time frame the seller aims to divest, our Capital Markets and Industrial & Logistics teams helped our client to secure the site and assured him the power supply for future data centre redevelopment. We successfully managed the seller’s price expectations even though the market was trending upwards. As a publicly listed data centre service provider, the client was required to undergo stringent and comprehensive due diligence process, our Hong Kong Valuation & Advisory team also completed a valuation report to meet client’s requirement.

ROSANNA TANG Head of Research, Hong Kong

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

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MARKET INSIGHTS

INDIA India has rapidly expanded from an initial core market in Mumbai to six large markets including Chennai, Hyderabad, Delhi, Pune, and Bangalore, with a multitude of international operators moving into the country to compete for hyperscale business. After a gradual initial pace, all major cloud services are now active in-country, most with multiple regions in key markets and with plans to expand further. Sites that can support data centre builds are changing hands quickly, with several half-gigawatt campuses now in planning at final build. As a result, India joined Mainland China, Japan and Australia as >1GW-sized markets in 2023.

Q2 2024 KEY INDICATORS

27 OPERATORS, 120 DATA CENTRES

1,406MW IN OPERATION

1,310MW UNDER CONSTRUCTION

After a gradual initial pace, all major cloud services are now active in-country, most with multiple regions in key markets and with plans to expand further.

1,620MW PLANNED

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

PRIMARY MARKETS MUMBAI | CHENNAI | HYDERABAD SECONDARY MARKETS DELHI NCR | PUNE | BANGALORE

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

GLOBAL CLOUD PROVIDER Location

GLOBAL COMPUTER SECURITY SOFTWARE COMPANY Location Bangalore Service Colocation rack space leasing Date 2022 Demand Size 100 racks

OUR TRACK RECORD

Maharashtra state

Service

Site search, evaluation and acquisition

Date

2021

Value

US$65M

Power

150+MW

Size

1,568,160+ sqft (36+ acres)

We supported the client in preparing and executing a comprehensive site acquisition strategy for private, leasehold lands over a 12 month period. Two separate sites in Maharashtra were acquired to add to our Client’s presence and set-up a robust availability region. Upon development completion, the IT load for this facility will exceed 150MW. The transactions were concluded in record time even though multiple approvals and condition precedents were to be undertaken before site acquisition.

The client exclusively appointed Cushman & Wakefield to source a suitable off-premise data centre colocation service provider located close to the delivery centre in Bangalore. We collated various offers from the market for client to benchmark pricing and ultimately shortlisted three potential sites for client to consider. Despite the client having existing relationships with various providers, we were able to negotiate the terms confidentially on their behalf, securing a competitive lease with NTT Data.

CONTACTS Click on each name to email them

GLOBAL CLOUD PROVIDER Location

ADANI DATA CENTRES Location Chennai Service

Maharashtra state

GAUTAM SARAF Managing Director Mumbai & New Business

Service

Site search, evaluation and acquisition

Project & construction management

Date

Date

2021

2022

Value

Power

US$50M

25MW

VIVEK DAHIYA MD& Head of Asia Pacific Data Centre Advisory Team

Power

Size

200+MW

400,000sqft

Size

348,480sqft (8 acres)

Involving complex coordination between our teams in Australia, Singapore, Japan, Hong Kong, U.S. and India, we assisted the client in securing a site to build a 200+MW data centre in Navi, Mumbai. 20 site options that were on sales and/or on long lease terms were proposed and underwent strict legal, technical, soil and environment evaluations. The final deal structure was negotiated as a Built-to-Suit on long term lease with option to buy and based on the total development potential of 450,000 sq. ft. in phase 1 followed by an additional 450,000 sq. ft. in potential future planning.

We worked closely with the client to deliver their latest Chennai built-to order 25MW data centre. Appointed to manage the greenfield shell and core construction, Cushman & Wakefield oversaw the appointment of the project’s builders, worked directly with nominated infrastructure and IT partners as part of this highly successful project that is due for market operation in early January 2023. Our Project Development Services team leveraged our extensive market knowledge, data centre expertise and regional partnerships to deliver this key project on time and within budget.

SHIVANI JADON Assistant Vice President, Data Centre & Cloud Advisory

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

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MARKET INSIGHTS

INDONESIA The Indonesian data centre market has rocketed to major market status over the past few years. Indonesia’s data centre market continues to grow, buoyed by the government investment into the country’s digital economy and its acceleration of digital transformation across all ministries, government agencies, and state-owned enterprises. Since the government started to ease its stance on data centre regulations in recent years, Jakarta offers promising investment prospects with government provided tax incentives and exemptions to boost the digital economy.

Q2 2024 KEY INDICATORS

26 OPERATORS, 76 DATA CENTRES

296MW IN OPERATION

114MW UNDER CONSTRUCTION

637MW PLANNED

The Indonesian data centre market has rocketed to major market status over the past few years.

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

PRIMARY MARKETS JAKARTA | SURABAYA | BANDUNG

SECONDARY MARKETS MEDAN | BATAM | PEKANBARU

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

GLOBAL DIGITAL EDGE COMPANY Location Jakarta

OUR TRACK RECORD

Acquisition advisory Project management

Service

2021 acquisition 2022 – 2023 construction

Date

Value

US$17.3M (land)

Power

3MW (post development)

65,000sqft (land) 408,361sqft (GFA post development)

Size

CONTACTS Click on each name to email them

As part of this digital edge company’s national expansion activities and in a move to boost Indonesia as a strategic digital hub in the region, Cushman & Wakefield assisted the client with the procurement of one of the first greenfield data centres projects within the estate. The site needed to be suitable and approved for data centre development and required complex power and fibre optic routes, with all prerequisites discussed and ratified by relevant stakeholders. Post-acquisition, we were appointed by the client as project and construction managers for a multi-storey, tier 3+ colocation data centre facility on site with maximum total MW critical load across 15 storeys and approximately 408,361ft2. The interior fit-out will include 5 – 8kW racks, office space and other requisites, including mechanical, electrical, and plumbing.

WIRA AGUS Director, Industrial & Land Sales

ARNAB MANDAL Director, Southeast Asia Data Centre Lead, Project Development Services FENNY SUKARDI Director, Tenant Advisory Group DWITJE WANGSADIPUTRA Director, Project Management

The site needed to be suitable and approved for data centre development and required complex power and fibre optic routes.

MINA ONDANG Director, Investment

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

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MARKET INSIGHTS

JAPAN Japan is a more mature data centre market than most regional countries, with advanced telcos building a dense infrastructure of data centres decades before most countries received any sort of deployment. Continuing to the current day, these telcos now compete with an increasingly international array of data centre operators, with Tokyo a global hub and large-scale development underway outside the city proper in Inzai. Osaka has now followed Tokyo’s lead as a data centre destination, with several new projects expanding the local market.

Q2 2024 KEY INDICATORS

34 OPERATORS, 169 DATA CENTRES

1,423MW IN OPERATION

422MW UNDER CONSTRUCTION

Japan is a more mature data centre market than most regional countries, with advanced telcos building a dense infrastructure of data centres decades before most countries received any sort of deployment.

2,213MW PLANNED

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

PRIMARY MARKETS GREATER TOKYO

SECONDARY MARKETS OSAKA

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

OUR TRACK RECORD

GLOBAL CLOUD COMPUTING FIRM Location Inzai Service

LEADING INVESTMENT FIRM Location Tokyo Service

CONTACTS Click on each name to email them

Acquisition advisory & construction management

Asset Management

Power

Power

50MW

48MW

Size

Size

4,090,286sqft (380,000m 2 )

360,000sqft

TODD OLSON Managing Director, Japan & Korea (North Asia)

Sourced site and introduced an investor to fund land acquisition and construction. We also negotiated a long-term sale-leaseback at favourable terms. We managed construction and provision of power to complete the data centre on time and within budget.

Assisted land acquisition and re-purposing of the buildings into data centres – ongoing projects.

KOSUKE OGI Executive Director, Capital Markets, Japan YASUSHI OTOMO Director, Project & Development Services, Japan MARI KUMAGAI Head of Research & Consulting, Japan

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

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MARKET INSIGHTS

KOREA With the growing and rapid interest in Greater Seoul drawing data centre demand to the capital and its surrounds, Korea has earned global status as a primary data centre market. In attempts to decentralise data centre development to other regions of Korea, the government is aiming to promote and incentivise data centre investment into Gangwon, Pohang and Sejong to ease pressure on the grid and appease community concerns in Seoul. Seoul remains the target for hyperscale and colocation groups. However, with the challenges that prevail more attention is being afforded to secondary and tertiary cities such as Busan, Korea’s second largest city.

Q2 2024 KEY INDICATORS

27 OPERATORS, 71 DATA CENTRES

649MW IN OPERATION

267MW UNDER CONSTRUCTION

With the rapid interest in Greater Seoul in recent years drawing data centre demand to the capital and its surrounds, Korea has earned global status as a primary data centre market.

811MW PLANNED

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

PRIMARY MARKETS GREATER METROPOLITAN SEOUL SECONDARY MARKETS BUSAN | DAEJOEN | GWANGJU

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

OUR TRACK RECORD

CONTACTS Click on each name to email them

RORY NEWMAN Senior Manager, Leasing Tenant Advisory JOHN PRITCHARD Head of Tenant Advisory Group, Korea JIYEOUL LEE Associate Director, Capital Markets, Korea DANNY PARK Senior Manager, Tenant Advisory Group

Originally planned to be developed for a different purpose, we advised the client on obtaining approval to secure power to the site in order to market and dispose as a data centre developable site instead.

K-FLOWER CITY (DEVELOPER) Location

Yongin-si, Gyeonggi do

Service

Disposal advisory

Date

2020

Value

US$134M

Power

200MW

JOE KIM Senior Manager, Leasing Tenant Representation CHLOE KWON Assistant Manager, Logistics & Industrial Research

Size

380,000sqft (35,331m 2 )

Originally planned to be developed for a different purpose, we advised the client on obtaining approval to secure power to the site in order to market and dispose as a data centre developable site instead. 200MW capability was secured, attracting significant attention from investors. It was the largest data centre deal carried out in the country at time of transaction.

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

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MARKET INSIGHTS

MALAYSIA Malaysia’s strategic location in Southeast Asia and proximity to Singapore, availability of affordable land, robust infrastructure, excellent connectivity, and government support are driving factors in its rise as a go-to-destination for data centre development in recent years. The market has drawn a very high level of investments by major global cloud service providers and other prominent foreign data centre operators, reflecting the high demand for data centres which will continue in coming years. As a result, Malaysia remains the fastest growing market in the region.

Q2 2024 KEY INDICATORS

17 OPERATORS, 45 DATA CENTRES

348MW IN OPERATION

516MW UNDER CONSTRUCTION

2243MW PLANNED

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

Malaysia remains the fastest growing market in Asia Pacific

PRIMARY MARKETS KUALA LUMPUR | CYBERJAYA | SELANGOR | JOHOR

SECONDARY MARKETS PENANG | NUSAJAYA

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

CONFIDENTIAL GLOBAL HYPERSCALER Location Three sites across Malaysia Service Acquisition advisory Size 100+ acres Value

CONFIDENTIAL GLOBAL HYPERSCALER Location Johor Service Acquisition advisory Size 60+ acres Date 2024

OUR TRACK RECORD

Investment value: US$5B (RM25B)

Date

2024

Cushman & Wakefield / IVPS was retained by a U.S. hyperscale client in 2019 to identify and secure three strategic locations for data centre development to form a triangle across Malaysia. The selection process focused on ensuring access to a minimum of 200MW of power per site and a planned expansion within the identified region. We managed the negotiation and acquisition of three locations, securing optimal commercial terms from a list of 50+ proposed sites within the parameters set by the client.

Cushman & Wakefield / IVPS was retained by a U.S. hyperscale client in 2022 to identify and secure a strategic land for data centre development, adhering to complex client-specific parameters. During the early stages of site search, over 50 locations were proposed before power availability, telco, water and land suitability analysis was completed by the due diligence team on a shortlist of final sites. A greenfield site within an existing data centre cluster was selected that met the client’s requirements.

EDGECONNEX Location

INFINAXIS CAPITAL Location

Three sites across Klang Valley

Cyberjaya

Service

Service

Acquisition advisory

Acquisition advisory

Power

Power

280+MW total IT load across sites

Planned for 20 MW

Size

Size

Combined land: 45+ acres

Land: 3.1 acre

Date

Value

2023

Land: US$5.2M (RM23M)

CONTACTS Click on each name to email them

Date

2022

TIFFANY GOH Country Manager, Malaysia

IVPS was engaged in 2021 to strategically identify prime greenfield sites conducive to EdgeConnex’s operational requirements and produced 30+ potential locations. Three sites were located in Kuala Lumpur City (19MW), Bukit Jalil (70MW) and Cyberjaya (200+MW). Land clearing is currently in process and construction is expected to be completed by 2025.

Cushman & Wakefield / IVPS was appointed by the client to source land with access to minimum 20MW for a potential data centre development in Cyberjaya. More than 30 land options were proposed, which were assessed for power availability and fibre connectivity. Two plots of land were identified as suitable for their power and fibre availability, and proximity to telecommunication services. Due diligence and sale and purchase reviews were executed, and the transaction was completed smoothly with limited power attorney provided to expedite on the necessary planning approvals.

HEMA JAYARAMAN Manager, Capital Markets, Malaysia

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

23

MARKET INSIGHTS

SINGAPORE Since the lifting of the moratorium and despite the high property and construction costs when compared to other Asia Pacific markets, Singapore continues to be a leading data centre hub for it’s regional and global connectivity. We anticipate in 2024 that Singapore will join Mainland China, India, Japan and Australia as the 5th market to grow beyond 1GW in operational capacity in Asia Pacific. The sovereign state continues to boast the lowest colocation vacancy rate of 1% within the region, strongly indicating that demand outstrips supply. Demand continues to be fueled by Western and Chinese hyperscalers in the market, as well as key sectors such as banking and finance.

Q2 2024 KEY INDICATORS

25 OPERATORS, 51 DATA CENTRES

985MW IN OPERATION

54MW UNDER CONSTRUCTION

295MW PLANNED

Singapore boasts the lowest colocation vacancy rate of 1% within the region, strongly indicating that demand outstrips supply.

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

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

BIG DATA EXCHANGE (BDX) Location

GLOBAL BANKING AND FINANCIAL SERVICES CLIENT Service Colocation renegotiation Date 2022 Power 100kW Demand Size 100 racks, 10 seats

OUR TRACK RECORD

OneTen Paya Lebar

Service

Brokerage

Date

2024

Power

14MW

Size

155,503 sqft (GFA)

Value

US$104M

Amidst severe scarcity of power supply and data centre colocation provision in Singapore, the sale of the industrial facility by Hwa Hong Corp, generated significant interest. BDx took over the facility and existing lease from Telstra in 2020 and opted to acquire their operating premises when the facility came to market in 2023 to better control occupancy costs and inject more certainty in their future business plans in Singapore, where they relocated their HQ to in 2022.

The client’s DR site was hosted with an operator in Singapore and appointed Cushman & Wakefield to renegotiate their contract with the existing provider. We evaluated the requirement and benchmarked it again the current requirements achieving 33% cost savings, which included reduction in the power output supplied to the customer and reworking of commercials.

CONTACTS Click on each name to email them

BRENDA ONG Executive Director, Logistics & Industrial

GLOBAL HYPERSCALE CLOUD PROVIDER Service Construction & fit-out Date Ongoing since 2021 Power 50MW

KEPPEL INFRASTRUCTURE TRUST & SHIMIZU Location 1-Net North Data Centre Service Disposal advisory Date 2019 Power 50MW Value US$148.2M Size 215,000sqft (GFA)

NIRALEE S SHAH Business Operations Manager, PDS, Asia Pacific JAMES NORMANDALE Alternative Assets Lead, Project & Development Services (PDS), Asia Pacific

In 2022, our Singapore Project Development Services (PDS) team completed the first two phases of construction and fit-out for one of Singapore’s latest greenfield data centre facilities. The scope comprised of both precast and in-situ elements, site infrastructure works, underground equipment chambers, rooftop equipment installations and authority compliance and handovers. The team overcame the challenges of completing the construction through 2021 and 2022 amidst the Covid-19 pandemic control measures, global supply chain and manpower shortages. The team have also secured additional construction management and building consultancy services including providing Registered Inspection (RI) services on this project, and other client project sites.

DARREN LU Senior Manager, Industrial Leasing

A noteworthy transaction of property with tenancy in the city-state where data centres are rarely offered in the market. Compounded by the government enforced moratorium, the asset was sold with technology security and sustainability certifications attained.

XIAN YANG WONG Head of Research, Singapore

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

25

EMERGING MARKETS

PHILIPPINES The Philippines government is making increasing efforts to upgrade the market’s network infrastructure in recent years to bolster connectivity and reduce latency to regional locations across Asia Pacific and Europe, which will increase the appeal of the market for data centre development in coming years. Strengthening trade relations with China, South Korea, and other countries in South-East Asia, America and the European Union will further catalyse economic growth for the Philippines and drive demand for the market’s data centre industry. Power is available in most urban centres and industrial parks in the market, however, growing demand is resulting in an accelerated growth of land prices in recent years.

NEW ZEALAND Driven by the increasing adoption of cloud-based services, there is a growing demand for data centre services in New Zealand. Global service providers such as AWS and Google have announced cloud region in the capital of Auckland. Other data centre operators, investors and developers have started to explore the market, seeking to capitalise on the market’s access to network connectivity and power, especially the high level of renewable energy generation (hydro, geothermal and solar), which is cheaper than neighbouring Australia. While New Zealand is located in a high seismic area, there is a sophisticated level of expertise within the country around structural resilience that can advise international operators exploring and entering the market for data centre development.

Q2 2024 KEY INDICATORS

Q2 2024 KEY INDICATORS

13 OPERATORS, 30 DATA CENTRES

22 OPERATORS, 52 DATA CENTRES

74MW IN OPERATION

83MW IN OPERATION

68MW UNDER CONSTRUCTION

15MW UNDER CONSTRUCTION

85MW PLANNED

116MW PLANNED

CONTACTS Click on each name to email them

CONTACTS Click on each name to email them

CLARO CORDERO JR. Director, Research, Consulting & Advisory Services, Philippines

THERESE CASTRO Director, Head of Tenant Advisory Group, Philippines

TODD HANRAHAN Head of Project & Development Services, New Zealand

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

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

THAILAND Thailand is growing in its significance as a prominent ASEAN market as it continues to develop and evolve its digital ecosystem. As a result, the market is becoming increasingly popular with data centre investors and operators who are exploring the market, especially, Bangkok, which houses more than 90% of Thailand’s operational data centre capacity. Power availability and reliability is stable and improves away from central Bangkok as does the availability and cost of land. The Thailand Board of Investment (BOI) has established a range of non-tax and tax incentives that promote the growth of the country’s data centre industry, such relaxing restrictions for foreign ownership and corporate tax relief offerings, waivers on machinery imports, and VAT exemptions.

VIETNAM Vietnam remains as a new frontier for data centres in Asia Pacific. However, it is poised for steady expansion as its neighbouring ASEAN markets witness solid growth. In preparation, Vietnam’s digital economy is undergoing signification transformations driven by evolving regulations forced on by the impetus for greater digitalisation. Forward-thinking enterprises such as Apple, Intel, Canon, Samsung, LG, LEGO, Airbus, and other global organisations have begun working with partners based in Vietnam to establish digital transformation strategies as part of a holistic approach to global business. The Vietnamese government has also announced the National Data Centre Project that is planned around more securely storing government data as it moves towards greater digitisation in the public sector.

Q2 2024 KEY INDICATORS

Q2 2024 KEY INDICATORS

12 OPERATORS, 29 DATA CENTRES

24 OPERATORS, 55 DATA CENTRES

51MW IN OPERATION

63MW IN OPERATION

11MW UNDER CONSTRUCTION

80MW UNDER CONSTRUCTION

28MW PLANNED

324MW PLANNED

CONTACTS Click on each name to email them

CONTACTS Click on each name to email them

GARETH POWELL Country Head, Thailand

NITA ATHAKAIWALVATHI Senior Manager, Investment & Advisory, IFM, Thailand

TRANG BUI General Manager, Vietnam

STEPHEN HIGGINS Head of Capital Markets, Vietnam stephen.higgins@cushwake.com

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW

CONTACTS

TODD OLSON Executive Sponsor,

KUSHALAPPA KP Director, Data Centre Strategic Consulting & Insights, Asia Pacific

VIVEK DAHIYA Head of Asia Pacific Data Centre Advisory Team

APAC DCAT & Managing Director, Japan & Korea

REBECCA JUNG Associate Director, Data Centre Business Development, Asia Pacific

AMY KATHLEEN KELLY Associate Director, Data Centre PR & Media, Asia Pacific

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ABOUT CUSHMAN & WAKEFIELD Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.