APAC Data Centre Update: H1 2024

H1 2024 UPDATE ASIA PACIFIC MATURITY INDEX Our Asia Pacific Data Centre Maturity Index tracks 30 data centre markets across Asia Pacific* to compare their current maturity status as well as their potential evolution over the next decade.

capacities, the six powerhouse markets account for 53% of the operational data centre capacity in Asia Pacific region and about 45% of the under construction and planned capacities combined. Both Beijing and Tokyo are enroute to becoming 3GW+ sized data centre markets, with Shanghai & Sydney already 2GW+ sized markets and Johor/Mumbai inching towards 2GW sized market, upon the full development of their committed pipeline. ESTABLISHED markets, Seoul, Hong Kong, Singapore, Melbourne, Hyderabad, Chennai, Kuala Lumpur, Osaka and Jakarta are prominent markets that have either exceeded 1GW size, or show potential to become close to 1GW-sized markets for their strategic geographic locations and connectivity. All nine markets in the established category account for about 28% of the total operational capacity in the Asia Pacific region and 33% of the under construction and planned capacities combined in the region. These established markets are witnessing continued interest by the American hyperscale cloud entities, with all markets having presence or committed pipeline of at least one or two of the entities, with Singapore having presence of all three of the American hyperscale cloud entities. The build capacities (scale of individual data centres) of these markets are amongst the top fifteen markets in the Asia Pacific region, with Kuala Lumpur and Jakarta being outliers with comparatively lower build capacities amongst the nine established markets. DEVELOPING markets, Delhi, Pune, Guangzhou, Bangkok, Bengaluru, Taipei, Manila, typically have smaller live capacities and therefore account for about 7% of the operational capacity in Asia Pacific and about 8% of the under construction and planned capacities combined in the region. About 90% of the operational data centres in this category are smaller than 10MW capacity. However, local demand is growing in these markets and operators are planning ahead to meet future requirements. As a result, these markets typically have higher vacancies because the absorption rates are slower than the new supply that is being added.

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW (operational, planned and under construction) of these markets comprise almost 48% of the overall Asia Pacific region. Similarly in terms of live This index is a statistical comparison that evaluates markets on fifteen parameters, the ranking achieved of which is visually indicated on the graph, with inputs on overall stock (operational, planned and under construction). We have adopted a change in the methodology by segmenting the parameters into three key primary parameters (1) Overall Stock & Vacancy; (2) Presence of colocation players and hyperscalers, apart from telecom entities; and (3) Build Capacities (scale of individual data centres) within the markets (considering impending influence of AI deployment across various markets). Each of the primary parameters contain five secondary parameters adding up to a total of fifteen parameters, being used for indexing the maturity of each market. The data points for each market are stacked into a parameter matrix and weighted to derive their overall growth score, wherein, higher the growth score, the respective markets are forecasted to evolve better into the future. We believe that while the Maturity Index is an indicator of current dynamics within each market, it is also an indicator of future potential within each market. As per our practice, the markets are grouped into the below four categories to provide relevance & understanding of prevalent scale & dynamics: POWERHOUSE markets are the largest in region in terms of their overall data centre capacity and committed pipelines. Basis the change in methodology adopted, Sydney has scored the highest ranking in terms of market maturity, considering single digit vacancy levels, being the third largest market (after Beijing & Tokyo) in terms of overall stock and also scoring the highest in terms build capacities. While Beijing, Tokyo have better vacancy levels, Sydney is scoring higher due to larger build capacity (scale of individual data centres), which can also hold that market in good stead, considering impending AI deployments in the coming years. Johor is ranking second in terms of market maturity, considering very low vacancy at 2% and with the highest build capacity amongst all markets. Beijing, Tokyo, Mumbai and Shanghai complete the six powerhouse markets in that order, wherein the total stock

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