ASIA PACIFIC DATA CENTRE CAP DECK
Cushman & Wakefield's data centre capabilities plus regional and local market insights for data centres across Asia Pacific.
DATA CENTRE ADVISORY
OUR CAPABILITIES & MARKET INSIGHTS
UPDATED 14 May 2024 (Q1 2024 Update)
CUSHMAN & WAKEFIELD AT A GLANCE
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We are a leading and one of the largest commercial real estate services firms globally that deliver exceptional value for our clients.
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$9.5B REVENUE (2023)
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60 COUNTRIES
400 OFFICES
52K EMPLOYEES
OUR OPERATING MODEL
ASIA PAC VIV Hea Dat Tea
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 CONNECTIVITY & COOPERATION Cross-regional & global platform to reflect the way clients are increasingly procuring data centre services
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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Click on each name to email them
ONFIDENTLY GLOBAL,
APAC DCAT LOCAL MARKET LEADS
ALEX MOFFATT Australia
JOHN SIU Hong Kong
cific Data Centre Advisory Team (APAC DCAT) as part of our Global Data Centre Advisory created optimal solutions and location strategies to address highly complex IT requirements se clients across the region and globally since 2004. isciplined team, consisting of experts across a spectrum of advisory services, focus on the data centre market for seamless delivery. Every client requirement is unique; we perience to develop long-term strategies that drive wise investment decisions for enterprise cation providers, hyperscalers, sector investors and developers.
ANDREW CHAN Mainland China
DAVID CHEN Taiwan
GAURAV PANDEY India
WIRA AGUS Indonesia
IFIC DATA CENTRE ADVISORY TEAM (APAC DCAT) VEK DAHIYA
TODD OLSON Executive Sponsor,
REBECCA JUNG Associate Director, Business Development Services, Asia Pacific
TIMOTHY GREGERSEN Japan
JOHN PRITCHARD South Korea
ad of Asia Pacific ta Centre Advisory am
APAC DCAT & Managing Director, Japan & Korea
TIFFANY GOH Malaysia
TODD HANRAHAN New Zealand
IVANI JADON sistant Vice President, ta Centre & Cloud dvisory
JAMES NORMANDALE Alternative Assets Lead, Project & Development Services, Asia Pacific
GORDON MARSDEN Head of Capital Markets, Asia Pacific
HRIS CUFF ta Centre Account anagement, Asia Pacific
THERESE CASTRO Philippines
BRENDA ONG Singapore
AMERICAS
EMEA
COB ALBERS ad of Alternatives sights, Global Think Tank
ANDREW FRAY Head of EMEA Data Centre Advisory Team
JESSICA HOWE Vice President, Global Growth Verticals
GARETH POWELL Thailand
TRANG BUI Vietnam
OUR SERVICES
THE ENTIRE DATA CENTRE
SUSTAINABILITY ADVISORY
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.
DIVESTMENT STRATEGY
CLIENT TYPES ENTERPRISE USERS COLOCATION PROVIDERS HYPERSCALERS SECTOR INVESTORS SECTOR DEVELOPERS
FINANCING & LENDING ADVISORY
OCCUPIERS
VALUATION ADVISORY
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SITE DUE DILIGENCE
INVESTORS
KEY CLIENTS
PURCHASE / LEASE NEGOTIATIONS
LOCATION & REQUIREMENT STRATEGY
CONSTRUCTION ADVISORY
BROWNFIELD / GREENFIELD SITE ACQUISITION
PARTNERING WITH YOU AT EACH STEP
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
FACILITIES MANAGEMENT
PORTFOLIO MANAGEMENT
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DEFINE THE NEED Your requirement is defined by learning your objectives, business drivers, risk profile, infrastructure and redundancy needs, latency requirements and occupancy initiatives. IDENTIFY OPPORTUNITIES We conduct research and create a customised market report using proprietary tools, then assess the market dynamics, opportunities, and risks before we develop a strategy and make recommendations for the mandate. ALIGN WITH CLIENT We coordinate physical tours, identify best options, assist with technical inspections and determining the short list selections for the proposal process, while incorporating all the essential stakeholders. QUALIFY OPTIONS From drafting and distributing and managing the LOIs or RFPs, to preparing executive summaries and creating detailed analyses, we assist you with qualifying the most suitable options.
BUILD CONSENSUS At the forefront of our services on behalf of our clients is our leadership in building internal consensus and obtaining approvals across IT, finance, real estate and risk departments. GUIDE NEGOTIATIONS Our goal is to help you achieve the best economic, technical and legal advantages in your contract. To that end, we guide and advise you through the course of negotiations. SUPPORT AFTER EXECUTION Following the final stages of internal approvals and contract execution, we continue to serve by providing convenient transaction summaries of contract terms and calendar reminders for future critical dates.
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COLOCATION & IT ADVISORY
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TENANT REPRESENTATION
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MARKET INSIGHTS
A FORCE
Asia Pacific’s* data centre markets has surpassed the 10GW mark, with ~800MW of new supply added in H2 2023 bringing the total regional live capacity up to 10.6GW. We continue to witness a robust development pipeline with 3.9GW under construction throughout the region and 9.4GW in planning stages, which is an increase of ~900MW since our last update. Many markets across Asia Pacific continue to witness rapid growth in terms of both operational and development capacities. Almost 80% of operational capacity is concentrated in the region’s top 5 markets – Mainland China (3.9GW), Japan (1.3GW), Australia (1.2GW), India (1.1GW) & Singapore (962MW). In H2 2023, India joined Mainland China, Japan and Australia as >1GW-sized markets and we anticipate that Singapore will reach this status sometime in 2024 with 962MW currently live. More than 50% of under-construction activity regionally is concentrated in Mainland China and India. However, with a development pipeline of 2.9GW & 1.7GW of combined under construction and planned activity in India and Japan respectively, we will see these markets on track to rival Mainland China as the only three markets in Asia Pacific to grow larger than 3GW over the next 5 years. However, due to the ongoing issues with power availability in Japan, especially in Tokyo, there may be delays in the overall timeline for the market to reach this milestone. ASIA PACIFIC DATA CENTRE MARKET UPDATE
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.
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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MARKET INSIGHTS
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.
Q1 2024 KEY INDICATORS
36 OPERATORS, 143 DATA CENTRES
1,327MW IN OPERATION
282MW UNDER CONSTRUCTION
Local enterprise and government users have rapidly absorbed new capacity brought to market.
1,480MW PLANNED
(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
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.
CONTACTS Click on each name to email them
ALEX MOFFATT Director, Logistics & Industrial, Australia
TOP FOUR NATIONAL BANKING INSTITUTION Location Sydney
ASIA PACIFIC DATA CENTRES GROUP Location
Melbourne (M1), Sydney (S1), Perth (P1)
TONY IULIANO International Director - Head of Logistics & Industrial, ANZ
Service
Portfolio disposal advisory
Facilities management Sustainability services
Service
Date
2018
Date
Ongoing since 2011
Value
AU$163M
STEWART ARMSTRONG Associate Director, Client Services, Project Management
Power
3MW
Power
37MW total across three data centres
Size
Size
120,900sqft NLA (11,232m 2 )
46,893m 2 total building area
PETER BATH Valuer, Valuation Services
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.
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.
MARKET INSIGHTS
Greater China, which includes Mainland China, 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.
Q1 2024 KEY INDICATORS (Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.)
TAIWAN
HONG KONG SAR
MAINLAND CHINA
11 OPERATORS, 41 DATA CENTRES
20 OPERATORS, 52 DATA CENTRES
36 OPERATORS, 244 DATA CENTRES
266MW IN OPERATION
621MW IN OPERATION
4,134MW IN OPERATION
53MW UNDER CONSTRUCTION
223MW UNDER CONSTRUCTION
820MW UNDER CONSTRUCTION
122MW PLANNED
224MW PLANNED
1,796MW PLANNED
SECONDARY MARKETS TIANJIN | CHONGQING | CHENGDU | HANGZHOU | NANJING | TAIPEI
PRIMARY MARKETS BEIJING | GUANGZHOU | HONG KONG | SHANGHAI | SHENZHEN
CHUNGHWA POST DATA CENTRE Location Taoyuan City, Taiwan Service
ZOOMLION Location
Changsha, Hunan
OUR TRACK RECORD
Service
Landlord representation for leasing
Project and construction management
Date
Date
2024
Ongoing till 2024
Power
Power
8MW
3MW
Size 180,000sqft 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.
Size
182,986sqft (data centre only)
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.
CONTACTS Click on each name to email them
JOHN SIU Managing Director, Hong Kong
BIG DATA EXCHANGE (BDx) Location
CENTRAL INDUSTRIAL BUILDING Location Kwai Chung, Hong Kong Service
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
Kwai Chung, Hong Kong
Tenant representation for lease acquisition
Site acquisition & property valuation
Service
Date
2021
Date
2023 and 2024
24,336sqft (site area) 277,430sqft (data centre redevelopment)
Size
Power
10MW + 2MW
Size 192,000sqft in three phases 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.
EVA DENG Associate Director, Capital Markets, China
DAVID CHEN Assistant Manager, Valuation Services, Taiwan
MARKET INSIGHTS
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.
Q1 2024 KEY INDICATORS
24 OPERATORS, 102 DATA CENTRES
1,075MW IN OPERATION
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.
1,117MW UNDER CONSTRUCTION
1, 645MW 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
GLOBAL CLOUD PROVIDER Location Maharashtra state Service
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. GLOBAL COMPUTER SECURITY SOFTWARE COMPANY Location Bangalore Service Colocation rack space leasing Date 2022 Demand Size 100 racks
OUR TRACK RECORD
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.
CONTACTS Click on each name to email them
GLOBAL CLOUD PROVIDER Location Maharashtra state Service
ADANI DATA CENTRES Location Chennai Service
GAUTAM SARAF Managing Director Mumbai & New Business
Site search, evaluation and acquisition
Project & construction management
Date
Date
2021
2022
VIVEK DAHIYA MD& Head of Asia Pacific Data Centre Advisory Team
Value
Power
US$50M
25MW
Size
Power
400,000sqft
200+MW
Size
348,480sqft (8 acres)
SHIVANI JADON Assistant Vice President, Data Centre & Cloud Advisory
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.
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.
GAURAV PANDEY Assistant Vice President, Data Centres
MARKET INSIGHTS
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.
Q1 2024 KEY INDICATORS
23 OPERATORS, 73 DATA CENTRES
260MW IN OPERATION
The Indonesian data centre market has rocketed to major market status over the past few years.
104MW UNDER CONSTRUCTION
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 JAKARTA | SURABAYA | BANDUNG
SECONDARY MARKETS MEDAN | BATAM | PEKANBARU
OUR TRACK RECORD
GLOBAL DIGITAL EDGE COMPANY Location Jakarta
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
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.
CONTACTS Click on each name to email them
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
MARKET INSIGHTS
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.
Q1 2024 KEY INDICATORS
35 OPERATORS, 162 DATA CENTRES
1,361MW IN OPERATION
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.
285MW UNDER CONSTRUCTION
1,720MW 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
OUR TRACK RECORD
CONTACTS Click on each name to email them
GLOBAL CLOUD COMPUTING FIRM Location Inzai
LEADING INVESTMENT FIRM Location Tokyo Service Asset Management Power 48MW Size 360,000sqft
TODD OLSON Managing Director, Japan & Korea (North Asia)
Acquisition advisory & construction management
Service
Power
50MW
TIMOTHY GREGERSEN Senior Manager, Investment Sales, Japan
Size
4,090,286sqft (380,000m 2 )
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
MARKET INSIGHTS
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.
Q1 2024 KEY INDICATORS
26 OPERATORS, 68 DATA CENTRES
605MW IN OPERATION
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.
244MW UNDER CONSTRUCTION
677MW 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
OUR TRACK RECORD
CONTACTS Click on each name to email them
K-FLOWER CITY (DEVELOPER) Location Yongin-si, Gyeonggi do Service Disposal advisory Date 2020 Value US$134M Power 200MW 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.
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. 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.
JINWOO JUNG Head of Research, Korea
MARKET INSIGHTS
Malaysia is expected to witness steady growth in the coming years as a prime data centre market in Southeast Asia. The abundant availability of resources and favourable government policies in relation to data centre infrastructures, the competitive cost of power, cheaper access to the site and lower construction costs compared to other Southeast Asia countries has drawn a high level of investments into the market that will continue in coming years. According to our forecasts, Malaysia is the fastest growing market in Asia Pacific, and we anticipate that it will witness a 600% growth in the next 5 years.
Q1 2024 KEY INDICATORS
16 OPERATORS, 41 DATA CENTRES
289MW IN OPERATION
Malaysia is the fastest growing market in Asia Pacific, and we anticipate that it will witness a 600% growth in the next 5 years.
237MW UNDER CONSTRUCTION
655MW PLANNED
(Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.)
PRIMARY MARKETS KUALA LUMPUR | CYBERJAYA | SELANGOR | JOHOR
SECONDARY MARKETS PENANG | NUSAJAYA
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. CONFIDENTIAL GLOBAL HYPERSCALER Location Three sites across Malaysia Service Acquisition advisory Size 100+ acres Value Investment value: US$5B (RM25B) Date 2024
CONFIDENTIAL GLOBAL HYPERSCALER Location Johor Service Acquisition advisory Size 60+ acres Date 2024
OUR TRACK RECORD
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.
CONTACTS Click on each name to email them
INFINAXIS CAPITAL Location Cyberjaya Service
EDGECONNEX Location
TIFFANY GOH Country Manager, Malaysia
Three sites across Klang Valley
Acquisition advisory
Service
Acquisition advisory
Power
Planned for 20 MW
Power
280+MW total IT load across sites
HEMA JAYARAMAN Manager, Capital Markets, Malaysia
Size
Land: 3.1 acre
Size
Combined land: 45+ acres
Value
Land: US$5.2M (RM23M)
Date 2023 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.
Date
2022
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.
MARKET INSIGHTS
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 5 th 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.
Q1 2024 KEY INDICATORS
25 OPERATORS, 51 DATA CENTRES
975MW IN OPERATION
Singapore boasts the lowest colocation vacancy rate of 1% within the region, strongly indicating that demand outstrips supply.
45MW UNDER CONSTRUCTION
287MW PLANNED
(Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.)
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) 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. 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. GLOBAL BANKING AND FINANCIAL SERVICES CLIENT Service Colocation renegotiation Date 2022 Power 100kW Demand Size 100 racks, 10 seats
BIG DATA EXCHANGE (BDx) Location OneTen Paya Lebar Service Brokerage Date 2024 Power 14MW Size 155,503 sqft (GFA) Value US$104M
OUR TRACK RECORD
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. GLOBAL HYPERSCALE CLOUD PROVIDER Service Construction & fit-out Date Ongoing since 2021 Power 50MW 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.
CONTACTS Click on each name to email them
BRENDA ONG Executive Director, Logistics & Industrial
JAMES NORMANDALE Director, Vertical Practice Group Specialist Projects, Project Management, APAC
CHRISTINE HO Associate Director, Client Services, PDS
DARREN LU Senior Manager, Industrial Leasing
SECONDARY MARKETS INSIGHTS
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.
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.
Q1 2024 KEY INDICATORS
Q1 2024 KEY INDICATORS
22 OPERATORS, 53 DATA CENTRES
11 OPERATORS, 26 DATA CENTRES
79MW IN OPERATION
71MW IN OPERATION
15MW UNDER CONSTRUCTION
65MW UNDER CONSTRUCTION
70MW PLANNED
91MW PLANNED
(Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.)
(Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.)
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
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 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.
Q1 2024 KEY INDICATORS
Q1 2024 KEY INDICATORS
25 OPERATORS, 59 DATA CENTRES
12 OPERATORS, 29 DATA CENTRES
66MW IN OPERATION
47MW IN OPERATION
80MW UNDER CONSTRUCTION
11MW UNDER CONSTRUCTION
246MW PLANNED
36MW PLANNED
(Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.)
(Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT.)
CONTACTS Click on each name to email them
CONTACTS Click on each name to email them
TRANG BUI General Manager, Vietnam
JOHN LE Senior Manager, Leasing Agency – Industrial, Vietnam
NITA ATHAKAIWALVATHI Senior Manager, Investment & Advisory, IFM, Thailand
GARETH POWELL Country Head, Thailand
CONTACTS
VIVEK DAHIYA Head of Asia Pacific Data Centre Advisory Team (APAC DCAT)
TODD OLSON Executive Sponsor, APAC DCAT & Managing Director, Japan & Korea
REBECCA JUNG Associate Director, Business Development Services, 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. Disclaimer: ©2024 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable, including reports commissioned by Cushman & Wakefield (“CWK”). This report is for informational purposes only and may contain errors or omissions; the report is presented without any warranty or representations as to its accuracy. Nothing in this report should be construed as an indicator of the future performance of CWK’s securities. You should not purchase or sell securities—of CWK or any other company—based on the views herein. CWK disclaims all liability for securities purchased or sold based on information herein, and by viewing this report, you waive all claims against CWK as well as against CWK’s affiliates, officers, directors, employees, agents, advisers and representatives arising out of the accuracy, completeness, adequacy or your use of the information herein.
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