Asia Pacific Data Centre Update

DATA CENTRE UPDATE

H2 2022

PRIMARY MARKETS:

Singapore, Hong Kong, Sydney, Seoul, Tokyo, Mumbai

GROWTH MARKETS:

Johor, Jakarta, Hyderabad, Bangkok, Manila, Ho Chi Minh

0

1

2

Colo Hyperscale Cloud Telco

APAC PRIMARY MARKET - RANK #1

KEY INDICATORS*

23 OPERATORS, 47 DATA CENTRES

876MW IN OPERATION

170MW UC / PLANNED

2% VACANCY RATE

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

MARKET OVERVIEW

In July, post the moratorium that was in place in Singapore since 2019, the Economic Development Board (EDB) and Infocomm Media Development Authority (IMDA) initiated a pilot Data Centre – Call for Application (DC-CFA) exercise that will facilitate the building of new DC capacity and allow for the calibrated and sustainable growth of the industry in Singapore consistent with their climate change commitments. The application deadline was recently extended to 5 December with results expected to be announced in Q1 2023. Besides meeting the min 10MW and max 60MW of critical IT load, proposals are required to adhere to specific sustainability requirements such as keeping to a 1.3 PUE or better at 100% IT load and achieving the BCA IMDA Green Mark for Data Centres Platinum Certification . It will also need to detail how the facility will strengthen Singapore’s position as a regional data centre hub, its international connectivity, contribute to their job economy and address other strategic and economic outcomes. Successful applicants will be supported with power leases for 30 years but there will be a temporary limit of 10MW of power that may be drawn from the grid until end-2025. Land, water and other requirements will need to be sought independently. The program has been well received by the industry and has prompted a competitive application landscape with joint bids and partnerships expected. Three potential sites in Loyang owned by JTC, the government agency in charge of Singapore’s industrial progress, have been made available as potential locations for applicants. There is not much scope left for new greenfield opportunities coming into the market, however, brownfield opportunities, if power can be secured, may be viable alternatives. The impact of the limited supply in Singapore and the recent moratorium have opened opportunities in neighbouring Johor and Batam markets in Malaysia and Indonesia.

ECOSYSTEM DEVELOPMENTS • Abu Dhabi Investment Authority (ADIA) and Singapore-based SC Capital Partners have established a data centre investment programme with the potential to scale up to US$2bn of equity. Through a subsidiary, ADIA has mandated SC Capital Partners (SCCP) , a private equity real estate firm headquartered in Singapore, to invest in data centres across the Asia Pacific region with a primary focus on Japan, South Korea, Singapore, and Australia. SC Zeus Data Centers , SCCP’s data centre platform launched earlier this year, will manage the new data centre investment programme with ADIA. • GIC backed U.S. data centre firm EdgeCore Digital Infrastructure has had a majority stake acquired by Partners Group to buildout EdgeCore’s existing and future large Tier 1 data centre sites with their US$1.2bn investment. • Google launched its third data centre in Jurong West, planned and executed prior to the moratorium. Located in Lok Yang Way, the new facility will have an estimated 80 MW of IT load capacity and joins two other self-build facilities the cloud giant operates in the region. • Leaseweb , a Dutch-based provider, opened a second data centre in Singapore in October. The opening is part of a larger expansion that includes Tokyo and Sydney. • ST Telemedia Global Data Centres reached an agreement for Macquarie Asset Management , via Macquarie European Infrastructure Fund 7, to acquire a significant minority stake in VIRTUS Data Centres . • In the wake of their acquisition of Superloop in H1 2022, DigitalBridge and Columbia Capital established Xenith Infrastructure Group , a fiber platform that aims to enable connectivity to data centre providers, carriers and enterprises. • Telenor Group established an independent Asian business unit headquartered in Singapore. Telenor Asia signed merger agreements in Malaysia and Thailand last year, expected to be the largest and second-largest mergers in Asia. • 12 submarine cables are expected to land in Singapore over the next three years linking across Asia Pacific, Europe and U.S.

SGP SINGAPORE

H2 22

RECENT PROPERTY SALES

PROPERTY

SIZE

SALE DATE

SALE PRICE (US$)

BUYER

SELLER

Keppel DC 7

17,300m²

May 2022

(Confidential)

Cuscaden Peak

Singapore Press Holdings

Techplas Industrial Building

6,846m²

May 2022

$8,186,755

(Confidential)

ESR-REIT

CONTACTS Click on each name to email them

CONSTRUCTION & PLANNED UPDATES*

BRENDA ONG Executive Director, Logistics & Industrial, Singapore brenda.ong@cushwake.com XIAN YANG WONG Head of Research, Singapore xianyang.wong@cushwake.com

OPERATOR

DATA CENTRE

LOCATION

BUILDING AREA POWER

STAGE - EST. RSF

SGP1

Loyang

48,000m²

Phase 2: 36MW

U/C - H2 2022

Jurong Loyang

Jurong Loyang

20,692m 2 23,787m 2

20MW 24MW

U/C - H2 2022

Phase 2: 2MW Phase 3: 3.15MW

U/C Planned

SIN1

Geylang

14,446.70m²

SG4 SG5

Tai Seng Jurong

23,214m² 31,893m²

Nex phase: 6MW Next phase: 6MW

Planned U/C

40MW

U/C

Singapore 7

Kallang Way

44,279m 2

RC1

Tai Seng

9,032m²

Next phase: 2MW U/C

YTL Data Center

Thomson

13,886.30m²

Next phase: 1MW U/C

* Excludes Captive & ICT construction updates.

APAC PRIMARY MARKET - RANK #2

KEY INDICATORS*

16 OPERATORS, 39 DATA CENTRES

417MW IN OPERATION

453MW UC / PLANNED

15% VACANCY RATE

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

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

Hong Kong is a robust data centre market which offers excellent regional and global connectivity, and availability of all major cloud networks. As a global financial and business capital, gateway to mainland China and for its globally lowest taxed data centre jurisdiction, there has been strong demand from data centre investors and operators that triggered a high volume of transactions in 2021, which have continued this year. However, the supply pipeline will be constrained in the medium to long term due to shortage of land and power supply, especially in Kwai Chung, Tsuen Wan, Shatin, Tsing Yi and Fanling, where it could take over 5 years to secure power and average land prices for data centre developments have appreciated 20-30% over the last few years. Locations such as Tuen Mun and Lantau Island provide better opportunities in relation to land and power, however, investors and operators are reluctant to pioneer new data centre territories in Hong Kong just yet. The Hong Kong government is also supporting the growth of the data centre market through many digitalisation initiatives, such as the Data Centre Facilitation Unit , which provides assistance regarding data centre developments in Hong Kong, including liaising with other government departments on matters such as statutory approval processes, compliance requirements or procedures. China has listed data centres as a key decarbonisation target alongside traditional heavy-emitting industries, and has ordered the country’s data centre operators and telecoms providers to conserve water and electricity, to locate facilities in areas with plentiful renewable energy and to develop lower-power facilities and equipment. The government has adjusted its policies to push the data centre industry to decarbonise in pursuit of the national goal of carbon neutrality by 2060.

ECOSYSTEM DEVELOPMENTS • AirTrunk has signed a new renewable energy agreement with Hong Kong utility CLP Power to off-set Microsoft ’s energy use in its HKG1 data centre. The solution will be directly linked to CLP’s West New Territories (WENT) Landfill Gas Power Generation Units. • ESR Cayman , Hong Kong based logistics real estate firm, has closed its first data centre development fund with over US$1bn in equity commitments for its inaugural vehicle, Data Centre Fund 1 (ESR DC Fund 1), dedicated to the development of its data centre business across Asia Pacific. The firm had previously announced its intention to expand its Hong Kong footprint during the first half of the year. • GDS secured a major hyperscale tenant for its Hong Kong 1 data centre during Q2 2022. • Goodman , an Australian integrated commercial and industrial property group, opened a data centre complex in Hong Kong’s New Territories with up to 400MW in overall power capacity, creating one of the city’s largest digital infrastructure facilities. The first two facilities have been completed and fully leased to Equinix and Vantage Data Centres . • PAG , the Hong Kong based global investment firm has been reportedly selected as one of three final bidders for Global Switch , who operate 13 data centres across Europe and Asia Pacific and is owned by Chinese steel giant Jiangsu Shagang Group . They have been seeking a US$10-11bn sale since early 2021 after having failed to launch Global Switch on the Hong Kong stock market. • Tencent and state-owned telecommunications company China Unicom ’s have received regulatory approval by the State Administration for Market Regulation to set up a joint-venture to team up on data centres and edge computing. • Vantage Data Centers , a leading global provider of hyperscale data centre campuses, announced the official opening of a new office in Hong Kong. The office serves as the regional hub to house engineering, construction, sales and leadership functions to support Vantage’s expanding business across the APAC region.

H2 22 HKG

CONSTRUCTION & PLANNED UPDATES*

GREATER CHINA

OPERATOR

DATA CENTRE LOCATION

BUILDING SIZE

POWER

STAGE - EST. RFS

HKG1

Tsing Yi Hui

17,400m²

Next phase: 8MW

Planned

Fo Tan DC / STTL 613

Phase 1: 10MW Phase 2: 30MW

U/C - 2025 Planned

Sha Tin

73,300m 2

CONTACTS Click on each name to email them

CITIC Telecom Tower

Kwai Chung

6,800m²

Phase 3: 1.12MW

Planned

JOHN SIU Managing Director, Hong Kong john.siu@cushwake.com ROSANNA TANG Executive Director, Head of Business Development Services, Research, Hong Kong rosanna.tang@cushwake.com

HKG11

Kwai Chung

21,185 m²

Phase 2: 16.5MW

Planned

HK 1 HK 4

Tsuen Wan Sha Tin

7,100m² 4,500m²

Next phase: 0.75MW Next phase: 10.62MW

Planned

HK 1

Kwai Chung

27,300m 2

40MW

Planned

HK 1 HK 2 HK 3 HK 4

HK 1: 22,900m 2 HK 2: 21,200m 2 HK 3: 22,100m 2 HK 4: 25,800m 2

19MW 18MW 21MW 22MW

HK 1, 2 & 4: Kwai Chung HK 3: Tsuen Wan

HK 1: U/C - Q1 2023 HK 2: U/C - Q2 2024 HK 3 & 4: Planned

Phase 1: 50MW Phase 2: 129.5MW

IDC Phase 1: U/C – 2023 IDC Phase 2: Planned - 2026

MEGA IDC

Tseung Kwan O

112,600m 2

12,000m 2 18,800m 2

Phase 2: 5MW 20MW

Fanling: U/C Gateway: U/C - Q4 2022

MEGA Fanling MEGA Gateway

Fanling Tsuen Wan

TGT Hong Kong Data Centre 2

Tseung Kwan O Industrial Estate

22,000m²

Next phase: 3MW

Planned

Phase 1: 12MW Phases 2 - 4: 36MW

U/C - 2023 Planned

HKG5

Tsuen Wan West

65,100m 2

* Excludes Captive & ICT construction updates.

APAC PRIMARY MARKET - RANK #3

KEY INDICATORS*

22 OPERATORS, 47 DATA CENTRES

667MW IN OPERATION

238MW UC / PLANNED

17% VACANCY RATE

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

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

The Sydney market continues to see substantial growth in the colocation and hyperscale space. New deliveries have continued to grow at a rapid pace. As of Q4 2022, the market makes up 57% of the total data centre market in Australia and remains a strong portion of the pipeline going forward, encompassing 38% of the development pipeline. The market has seen some of the largest deployments on the continent, with multiple 100MW or higher projects having recently delivered, under construction or in planning. Demand for storage has been buoyed by continuing cloud migration and digitization initiatives by both public and private entities. The Digital Transformation Agency (DTA) recently re-signed a whole-of-government deal with AWS totalling AU$174M for three years, enabling federal, state and territorial agencies as well as public universities to utilize the service. The total amount of capacity under construction has grown to 160MW with sizable projects from AirTrunk, NextDC and Macquarie all going under construction recently. Activity in the market has shifted West as developers seek more plentiful land, power and available infrastructure. The average size of operational facilities in Greater Western Sydney is >26MW compared to about 13MW in North Shore. The average size further increases to about 42MW for facilities under construction, highlighting the cluster as the most preferred for large scale developments. The Oman-Australia Cable (OAC) undersea cable was completed in October 2022. This cable will further enhance Australia’s significance as the hub between US and EMEA. Sydney also benefits from this cable as Sydney is connected to Perth via the Indigo Central undersea cable, thereby improving connectivity with EMEA. In other major events, STACK Infrastructure announced a partnership with Hickory, a leading Australian commercial real estate developer to create a national data centre platform. STACK is already in the midst of building a 72MW campus in Truganina to the West of Melbourne, with additional projects planned in Canberra and Perth.

ECOSYSTEM DEVELOPMENTS • The Australian Defence Department has signed large contracts with Canberra Data Centres (CDC) for data centre hosting services, pushing the company’s various scope of work for the government beyond AU$1bn. • AirTrunk , has completed its fifth and final 40MW phase of its 130MW Western Sydney campus, SYD1, in Huntinwood. Across its three facilities in Sydney, at full build-out, the operator will have more than 500MW of capacity in the city. • DigitalOcean , has announced a new data centre (SYD1) in Sydney, expanding its global presence and providing stronger compute capabilities to small businesses with low-latency links to North America and Asia. • Equinix brought the first phase of its first xScale data centre, SY9x, online in the market. The asset was funded through a US$575M joint venture with PGIM Real Estate . The initial phase totals 14MW of capacity, with a similar second phase currently in pipeline. Equinix also has a SY10x project of the same size in pipeline. • DXN Solutions , is considering alternative strategic options for its acquisition since PAG Real Estate ’s Flow Digital terminated the sale agreement. Flow is reportedly still considering a partnership with DXN for its international market expansion. • NAB , one of the four largest financial institutions in Australia, have signed a new contract with AWS as it adopts cloud computing and prepares to move more of its software and databases into the public cloud. They are also in the process of decommissioning its own data centres. • NextDC , opened the first phase of its largest data centre to date, S3 , a Tier IV rated 34,000sqm facility in Artarmon, which is expected to reach up to 80MW when fully developed. It is the operators third data centre in Sydney with S1 & S2 – in Macquarie Park, offering a combined 46MW across 14,500 sqm. • Leading Edge Data Centres (LEDC) , launched its new centre in Coffs Harbour. LEDC plans to open nine more centres in NSW. Markets including Victoria, Queensland and the Gold Coast are also being evaluated by the operator.

H2 22 SYD AUSTRALIA

RECENT PROPERTY SALES PROPERTY SIZE

SALE DATE

SALE PRICE (US$)

BUYER

SELLER

549 Harris Street

4,900m²

July 2022

$38,300,000

Optus Fixed Infrastructure Fortius Funds

Solaris Paper

18,654m²

Mar 2022

$51,900,000

Blackstone

GIC

CONTACTS Click on each name to email them

CONSTRUCTION & PLANNED UPDATES*

ALEX MOFFATT Director, Logistics & Industrial, Australia alex.moffatt@cushwake.com

OPERATOR

DATA CENTRE

LOCATION

BUILDING SIZE POWER

STAGE - RFS

SYD2 SYD3

Lane Cove Huntingwood

33,000m² 121,645m²

Phase 2: 30MW 35MW

Planned U/C

SYD56

Smeaton Grange

7361m²

Phase 2: 5.69MW

Planned

SYD9x Phase 2: 14MW SYD10x Phase 1: 28MW

Planned Planned

SY9x SYD10x

121,645m 2 20,100m²

Rosehill

Western Sydney Data Centre

Pemulway

34,000m²

Next phase: 72MW Planned

IC3 Super West

Macquarie Park

30,000m 2

32MW

U/C - H2 2023

SYD05-06-07

Kemps Creek

144,000m²

Phase 1: 48MW

U/C

Sydney S3

Artarmon

30,000m²

Phase 2: 20MW

U/C

25MW

U/C – Q4 2022

Athena

Macquarie Park

16,215m 2

* Excludes Captive & ICT construction updates.25MW

APAC PRIMARY MARKET - RANK #4

(SEOUL, GYEONGGI, INCHEON)

KEY INDICATORS*

330MW IN OPERATION

14 OPERATORS, 32 DATA CENTRES

592MW UC / PLANNED

4% VACANCY RATE

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

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

Previously, overlooked in comparison to other primary Tier 1 data centre markets across Asia Pacific, the South Korea (Seoul) market is now gaining international entrants in the form of major US-based data centre REITs, which have driven growth in the market since 2021. Demand is also very high from the global cloud service providers whose deployments are currently solely through colocation. In addition to existing operators, global data operators, financial investors, and domestic construction companies will flow in, which is expected to change the business structure centred on existing telecommunication companies such as KT, LG U+ and SK Broadband. The local market dominance of telcos has historically posed issues with carrier neutrality, but this may potentially be resolved by the entry of multinationals such as Equinix, Digital Realty, Digital Edge and Stack Infrastructure who have announced significantly sized projects that will go live from 2024 to 2025 onwards. However, local cloud services such as Naver, Kakao and NHN, and financial institutions are constructing self-builds for their own use, which will reduce their share of demand in the colocation market. Land near available power is increasingly scarce across the central Seoul CBD area, with multi-level builds required due to smaller parcel sizes and cost. Due to power shortages, KEPCO will not reserve power for future phases and operators will have to pay a minimum fee for the entire amount of contracted supply regardless of whether the data centre will be developed in phases or not. Land costs in Seongnam and Gangnam can be up to three times higher than land prices in Gyeonggi and Incheon, which is increasingly becoming locations of interest due to land/parcel availability and power supply. Locations north of the Han River such as Paju, are considered attractive due to more cost-effective land prices, land availability and power connections, however, international investors have shown an apprehension due to closer proximity the DMZ and have favoured the Incheon area to capture hyperscale demand.

ECOSYSTEM DEVELOPMENTS • Empyrion DC , the data centre arm of Singapore’s next gen infrastructure fund manager, Seraya Partners , has announced it is developing a 40MW green data centre in Gangnam. The project will utilise high-efficiency Building Integrated Photovoltaic Panels (BIPV) on the facade of the 10-storey project. Currently under construction, phase 1 is planned for ready-to-service status in 2024. • KT Cloud , a newly formed business unit of Korea’s telecoms firm KT Corp, has begun construction on a 26MW data centre, Gasan IDC, which will be a joint project involving DL Construction , KT and KT Cloud . The facility will have 10 stories above and 5 stories below ground and is scheduled to have phase 1 completed by 2025. • SK Group has taken full responsibility over a lithium-ion battery fire at their SK C&C Data Center in Bundang that caused massive disruptions to the operations of Kakao , a major Korean internet company that operates KakaoTalk, a messenger app service used by 90% of the nation’s population. The messenger app and other services including banking, payment and travel apps were disabled in the 11+ hour blackout. The incident has sparked disputes over monopoly regulations of online platforms and digital infrastructure in Korea and has raised criticism over Kakao’s dependence on SK C&C’s data centre. Kakao is building an independent data centre in Ansan, Gyeonggi that should prevent the recurrence of similar disruptions. • STACK Infrastructure , U.S.-based data centre developer, and ESR Cayman , a Hong Kong-based logistics real estate firm, have teamed up to jointly develop a 48MW data centre in Incheon with plans for completion aimed at Q4 2024. Power from KEPCO has been secured for the development. • STT announced plans for a second data centre in Seoul to be located in the Gasan-dong submarket. Partnering with Samsung SRA Asset Management and a global institutional investor, STT is planning for a 30MW capacity facility for delivery in 2025.

H2 22 SEL

RECENT SITE & PROPERTY SALES SITE / PROPERTY SIZE

SOUTH KOREA

SALE DATE

SALE PRICE (US$)

BUYER

SELLER

Fmr Kyung Dong Navien R&D Building

1 acre

April 2022

$46,526,271

Gasan

Daelim

Seil Steel Industrial Building

2 acres

January 2022

$61,882,608

KORAMCO

Seil Steel Co Ltd

CONTACTS Click on each name to email them

IMM Investment Group

23,146 m²

Dreammark1

April 2022

(Confidential)

Gaw Capital

JOHN PRITCHARD Head of Tenant Advisory Group, Korea john.pritchard@cushwake.com JINWOO JUNG Head of Research, Korea jinwoo.jung@cushwake.com

CONSTRUCTION UPDATES*

OPERATOR

DATA CENTRE

LOCATION BUILDING SIZE POWER

STAGE - EST. RFS

Pyeongchon Data Centre Youngdeungpo Data Centre

Anyang Youngdeungpo

25,000m 2 25,000m 2

26MW YDC Phase 1: 13MW Phase 2:13MW

U/C – 2024 YDS Phase 1: U/C – 2025

Phase 1: 10.6MW

U/C – 2023

Digital Seoul 2 (ICN11)

Gimpo

90,115m 2

Gangnam IDC

Gangnam

40,000m 2

Phase 1: 10MW

U/C - 2024

SL2x

Hyangdong

13,000m 2

SL2x Phase 1: 12MW U/C – 2024

Gasan Iwill Data Centre

Geumcheon

36,518m 2

Phase 1: 13MW

U/C – 2025

Pacific Sunny Data Centre Jukjeon

99,070m 2

Phase 1: 16MW

U/C – Q2 2024

40,450m 2 7,100m 2

Pyeongchon 2

Anyang

Phase 1: 12MW

U/C – Q3 2023

Bundang Center

Bundang

11,570m²

Phase 2: 6MW

U/C

* Excludes Captive & ICT construction updates.

APAC PRIMARY MARKET - RANK #5

KEY INDICATORS*

865MW IN OPERATION

25 OPERATORS, 93 DATA CENTRES

1,105MW UC / PLANNED

12% VACANCY RATE

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

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

Growth in the Tokyo market has continued through the end of the 2022, with several major names in the data centre space making substantial announcements. Following entrances from major investment heavyweights like ESR and Gaw Capital earlier in the year, AirTrunk and Google reached major milestones for projects in the second half of the year. Hyperscaler market share has also been increasing with self-builds, particularly by the global top three, AWS, followed by Microsoft and Google. Currently, the total capacity under construction is estimated to be 221MW, with continued competition for sites in both Inzai and in Tokyo itself. Developments are driven more by power availability than preference for location due to power shortages in central Tokyo, albeit less so around surrounding clusters. With land availability becoming tighter and due to the government’s attempts to push data centres away from more saturated hubs, entrants into the market are seeking more creative means of evaluating sites in outlying submarkets around Tokyo (such as Saitama) as well as secondary Japanese markets such as Osaka. Tokyo remains underserved in terms of data centre stock per capita relative to other global peer cities, equivalent to less than 5% of that in Singapore. This supports robust demand ahead from major cloud service operators, driven by the market’s increasing cloud adoption, level of economic and technological development, and the government’s roadmap to build a Digital Garden City Nation , which aims to achieve a rural-urban digital integration and transformation. As options increase for the growing tenant demand in the market, the coming years should have impressive performance for the rest of this year and continuing into 2023, both for investors and operators.

ECOSYSTEM DEVELOPMENTS • AirTrunk has begun construction of its 110+MW hyperscale facility in West Tokyo after securing a green loan in Japan under its Green Financing Framework to fund the development. It will be the operator’s second data centre in the city after TOK1 opened late last year in Inzai with an initial capacity of 60MW that is scalable to 300MW across seven buildings. • BBIX , an internet exchange provider, has partnered with NEC and add points of presence at NEC’s Inzai and Kanagawa data centres as part of its Open Connectivity eXchange platform (OCX). BBIX is a subsidiary of SoftBank. • Equinix , announced its 15th International Business ExchangeTM (IBX) data centre in Tokyo, TY15, with an initial investment of $115 million. It will be strategically located adjacent to the existing network and cloud dense IBX campus in Tokyo and due to open in H1 2024. • Google , will open its first data centre in Japan in Inzai by 2023. Google already has cloud regions in Tokyo and Osaka, but these are hosted in colocation facilities run by partners like Equinix. • NEC has made public plans to develop further phases of its Kanagawa and Kobe data centres. The planned phase 2 for the firm’s Kanagawa data centre in Tokyo is scheduled for 2H23. Both phases will be powered by 100% renewable energy. • NTT held a successful tried of a torso-on-wheels robot in its Shinagawa Data Centre. NTT plans to expand the rollout of such robots to 15 further facilities throughout Japan. • Starlink went live in Japan in October 2022, the first East Asian country to receive live service. Starlink has entered into a partnership with KDDI to deliver high-speed, low latency broadband internet to 1,200 remote mobile towers.

H2 22 TYO JAPAN

RECENT SITE SALES SITE

SIZE

SALE DATE

SALE PRICE (US$)

BUYER

SELLER

Higashikurume-shi

5 acres

April 2022

(Confidential)

ESR Cayman

(Confidential)

Fmr KDDI Fuchu Building

1 acre

March 2022

$63,406,714

Gaw Capital

United Urban REIT

CONTACTS Click on each name to email them

CONSTRUCTION UPDATES*

TODD OLSON Executive Sponsor,

OPERATOR

DATA CENTRE

LOCATION

BUILDING SIZE

POWER

STAGE - EST. RFS

APAC DCAT & Managing Director, Japan & Korea todd.olson@ap.cushwake.com MARI KUMAGAI Director, Head of Research & Consulting, Japan mari.kumagai@cushwake.com

TOK2

Ome

110,000m 2

TOK 2 Phase 1: 12MW U/C

CC3

Inzai

32,000m²

Phase 1: 10.65MW U/C – 2024

35MW

U/C - H2 2025

Yoshikawa

Yoshikawa

35,000m 2

Fuchu Campus

Fuchu

40,000m²

Phase 1: 19.5MW Phase 1: U/C

15MW

U/C - 2023

Data Centre

Inzai

10,000m 2

Shiroi Campus

Inzai

37,474m²

Phase 2: 10MW

U/C - Q1 2022

Tokyo NRT11-13

Inzai

84,000m²

Phase 1: 30MW

U/C - H2 2023

Saitama Campus

Saitama

58,860m²

Phase 1: 48.5MW U/C – Q2 2024

TKY01

Inzai

32,000m²

Phase 1: 18MW

U/C – Q4 2023

Inzai Campus

Inzai

60,000m²

Phase 1: 15MW

U/C – Q2 2024

HND1

Kanagawa

56,000m²

Phase 1: 8MW

U/C – Q2 2024

* Excludes Captive & ICT construction updates.

APAC PRIMARY MARKET - RANK #6

KEY INDICATORS*

11 OPERATORS, 30 DATA CENTRES

380MW IN OPERATION

595MW UC / PLANNED

16% VACANCY RATE

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

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

Mumbai, the financial capital of India, is also the largest data centre market in the country. The city accounts for almost 50% of the operational as well as under construction supply in the country. As of Q4 2022, Mumbai has recorded an under-construction pipeline of 565MW which is one of the highest in APAC. Therefore, Mumbai likely to retain almost 50% of India's market share, even in five or more years. The Thane-Belapur Road is the largest cluster in Mumbai currently and accounts for about 53% of the operational data centre inventory. The cluster also accounts for 94% of the under-construction supply amounting to 523MW. Until 2020, there were only three international colocation players with operational data centres in Mumbai. However, currently there are six international operators who have commenced construction of their first data centres adding 196MW in Mumbai. In addition, four international operators have land banks that can potentially add 180 MW of new supply in the city. Moreover, being the largest landing site in India with 12 live and six under construction undersea cables, Mumbai continues to attract interests of local and international operators to setup their data centres in Mumbai. In addition, one of the largest hyperscale cloud operator announced its first self-built region in Mumbai. This will be the first self-built region in Mumbai for any CSP. Considering the increase in demand for data centres in Mumbai, the Maharashtra state government, in October, announced that it is working on drafting a state specific Data Centre policy. The draft policy is expected to be released before the end of the year. Sustainable and Green energy, taxation, power requirements, etc., are some of the key areas that the policy is expected to address. The India-Asia-Xpress (IAX) and India-Europe-Xpress (IEX) undersea cables received environmental approvals to commence laying. The IAX will connect Mumbai with Singapore and have 12 cable landings across five nations, with branches in Sri Lanka, Thailand, and Malaysia. The IEX connects Mumbai to Milan with landing in Italy and branches in the Middle East, North Africa, and the Mediterranean. When completed, this will be the largest submarine cable network in the world. The cables are expected to be operational in 2023 and 2024, respectively.

ECOSYSTEM DEVELOPMENTS • AdaniConneX is building a 100 MW Data centre in Mumbai within the Thane-Belapur Cluster. The overall development potential of the campus is expected to be about 250MW. The firm also has plans to build 1,000MW data centres cumulatively across Mumbai, Chennai, Hyderabad, Delhi, Bengaluru and Pune over a 10-year period. • Global asset manager Blackstone Group , through their new wholly owned data centre platform, Lumina CloudInfra are planning two large data centres in India in Mumbai and Chennai with a total capacity of 600MW. Blackstone is in advanced stages of acquiring two data centres in Navi Mumbai in Airoli and Mahape. • One of the largest American CSP has leased 5.5 acres of industrial land from Larsen & Toubro in the Powai cluster in Mumbai, under a 21.5-year lease agreement to build a data centre. • Equinix has acquired a 4-acre land adjacent to its first two facilities in Mumbai. With an initial development cost of US$86M, this will be its third data centre in the city. This facility is expected to be ready for service by 2024. • NTT brought online the first phase of the 30MW data centre in Mahape, Navi Mumbai. The 9-storey structure will eventually be joined by up to three more buildings to total 150MW in capacity. • Prince Digital Group (PDG) launched its 48MW, IGBC Platinum certified data centre in Airoli, Navi Mumbai. The campus has 120MW of expansion capacity. The campus utilizes 40% of its power from renewable sources. • Deputy Chief of Maharashtra, Devendra Fadnavis has announced plans for a third Mumbai city close to the Navi Mumbai airport. The city will emerge as the largest data centre cluster in India and serve as a hub for the nation’s Digital Economy and Industry 4.0. The statement came after the Maharashtra government announced plans to release a new policy for governing the information technology sector under which data centres currently operate.

APAC EMERGING MARKET OVERVIEW

KEY INDICATORS*

9MW IN OPERATION

4 OPERATORS, 5 DATA CENTRES

568MW UC / PLANNED

12.4% VACANCY RATE

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

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

Since the advent of regulatory and land headwinds in Singapore, Johor has been one of the key secondary markets to rise to the occasion as data centre operators seek to expand capacity in the region. Even following the lifting of the Singapore moratorium, there remains significant constraints to land and power availability in the market, resulting in continued interest in opportunities in Johor. The overflow demand is mainly driven by hyperscalers and in this context, the first wave of demand is mainly driven by the China-based hyperscalers. At a glance, the overflow into Johor is still in its infancy. But the potential is there and based on monitored supply, there is approximately 568 MW in the pipeline (various stages of development) and the number shall continue to grow. This amount of supply will take time to be absorbed, but the expectation is that adequate demand is in place and potentially will ramp up steadily between now and then. Google Cloud confirmed plans to build a cloud region in Malaysia. As of today, there are no firm details yet on location or timelines, but it is worth to note that Google Cloud has on-ramps in Cyberjaya and Kuala Lumpur. Within the market of Johor, two clusters have arisen as the primary nodes for data centre development, the YTL Green Data Center Park and the Sedenak Tech Park (STeP). Located in Iskandar, the YTL Green Data Center Park has 275 acres allocated toward data centre development with 100% renewable energy and dark fibre connectivity to Singapore. STeP is a 745-acre area operated by the Johor Corporation for data centre development. The park has up to 600MW available of stable and redundant power, with additional power from a solar farm. YTL Power International Berhad has announced on its partnership with data centre operator GDS to co develop 168MW of data centre capacity at the upcoming YTL Green Data Centre Park in Johor, Malaysia. It is the second purpose-built data centre campus built in Johor which will be competing with Kulai Iskandar Data Exchange (KIDEX) in attracting data centre hyperscalers and occupiers. The park will have a total capacity of 500MW and will be the first hyperscale facility powered by renewable energy generated on-site. In order to capture the emerging market opportunity around the overflow requirements from Singapore, GDS continues on its aggressive expansion in Johor where a second site in Nusajaya Tech Park was acquired to meet its customers’ demand in addition to the JV project with YTL. Based on the market situation, the likes of Alibaba Cloud, Tencent Cloud and ByteDance are expected to continue drive demand.

ECOSYSTEM DEVELOPMENTS • AirTrunk is rumoured to be developing 30-40MW in Southern Industrial and Logistics Cluster . • Bridge Data Centres launched the first phase of 110MW for MY06 in October, a built-to-suit in Sedenak Tech Park (STeP) for Bytedance. • Equinix announced its intention to develop an initial US$40M data centre in Johor. JH!, Equinix’s first in the market is scheduled to come online at the beginning of 2024. • Yondr Group has commenced construction on their 200MW facility in STeP. The first phase is estimated for delivery in 2024. • YTL Power , a local Malaysian power provider, has partnered with data centre provider GDCS to build a 168MW facility . Located in the YTL Green Data Centre Park, the project will include eight buildings with the first phase estimated for complation in 2024.The data centre park, powered entirely by renewable energy, will have additional sites available for other development and tenants totaling over another 300MW. • Malaysian telecoms firm TIME dotCom is selling a major stake in its data centre business to U.S. infrastructure investor DigitalBridge Group for an estimated US$438mn.

JHR MALAYSIA

H2 22

RECENT SITE & PROPERTY SALES SITE / PROPERTY SIZE

SALE DATE

SALE PRICE (US$) BUYER

SELLER

GDS Data Centre

12.49 acres

July 2021

$15,558,065

GDS

Nusajaya Tech Park

Bridge Data Centre

38 acres

October 2021

(Confidential)

Bridge Data Centre

TPM Technopark

Yondr Data Centre

72.8 acres

March 2022

(Confidential)

Yondr Group

TPM Technopark

CONTACTS Click on each name to email them TIFFANY GOH Country Manager, Malaysia

JV between YTL Power International Bhd and GDS for 168 MW data centre

YTL Green Data Centre Park

-

April 2022

(Confidential)

Equinix

Equinix Data Centre

1,960m² colo space November 2022

(Confidential)

Nusajaya Tech Park

tiffanygoh@ivpsmalaysia.com

CONSTRUCTION & PLANNED UPDATES*

HEMA JAYARAMAN Manager, Capital Markets Malaysia hema@ivpsmalaysia.com

OPERATOR

DATA CENTRE

LOCATION

BUILDING SIZE

POWER

STAGE / EST. RSF

MY06

Sedenak

50,940m²

Phase 2: 42MW U/C – Q1 2023

Phase 1: 18MW Phase 2: 46MW

U/C - 2024 Planned

Nusajaya Tech Park

Gelang Patah

22,500m²

YTL Johor Data Center 1 Iskandar

49,703m²

72MW

U/C

* Excludes Captive & ICT construction updates.

APAC EMERGING MARKET OVERVIEW

KEY INDICATORS*

144MW IN OPERATION

19 OPERATORS, 35 DATA CENTRES

408MW UC / PLANNED

30% VACANCY RATE

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

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

Driven by high undersea cable connectivity, a central geographic location in Southeast Asia and immense population growth undergoing digital transformation, Jakarta has been catapulting itself to a global data centre market. Major cloud services and institutional capital have increasingly made inroads into the market. All major cloud services are now present or will soon be, vying for businesses serving the top-five global population throughout Indonesia, along with the potential growth of a further 100 million people getting online for the first time over the coming decades. This has allowed Jakarta to leap ahead of the small builds that exist in many similar cities and straight to hyperscale, with 307 MW currently under construction through this year and further operators looking for entry points. While active development in the market dipped earlier in the year, it has since resurged to new heights. Together, the current projects will grow the Jakarta market by over 400 MW, with little unattractive legacy infrastructure holding back large-scale deployment. It is safe to expect further positive headlines with many of these announced projects transitioning to active construction through 2022. The eastern area of Greater Jakarta is the largest cluster in terms of live capacity built at various industrial towns such as MM2100, Jababeka, GIIC, KIIC and Suryacipta. Following the trend of hyperscale building towards East Jakarta, Central Jakarta is an emerging cluster with many new announcements this year, centred around existing DTP Cyber 1.

ECOSYSTEM DEVELOPMENTS • Area 31 announced the opening of their 10MW edge facility in Jakarta in October. • BDx has acquired land in Karawang to develop a 100MW campus, to be known as CGK5. • DCI Indonesia expands H2 campus, announcing the opening of the first phase of its second data centre campus in Karawang with 12MW of capacity. • Digital Edge announced it’s EDGE2 facility in September 2022, which will support up to 23MW in capacity when live at the end of 2023 and will be located less than 3km away from EDGE1. • Equinix announced its expansion into Indonesia with plans for an International Business Exchange (IBX) data centre in Jakarta, which is expected to go live in H2 2024. Offering 1,600 cabinets, we estimate the facility to be ~7MW. • IndoKeppel , a JV between the Salim conglomerate of Indonesia and Singapore's Keppel Data Centres Group, opened phase one of IndoKeppel Data Centre 1 (IKDC1) with 5MW live. • K2 Data Centres has entered into a joint venture with Sinar Mas Land (SML) to own, develop and operate hyperscale data centres in Indonesia. Their first development, K2 Data Centre Jakarta 1 Campus (K2 JKT 1) has commenced construction and will comprise of four data centres with a total of 58.8MW in IT capacity. A second campus of similar scale is also in the pipeline in Karawang Regency. • Huawei Cloud has confirmed plans to add a cloud region to Jakarta by EOY 2022, complete with three availability zones likely split across multiple third-party colocation providers. • Metta DC a new Indonesian data centre company, opened its first data centre facility in Jakarta in October - ID01 with 35MW capacity. It also announced the development of ID02, a 12MW facility that is expected to go live by October 2023.

H2 22 JKT INDONESIA

RECENT SITE SALES SITE

SIZE

SALE DATE

SALE PRICE (US$) BUYER

SELLER

Cikarang

~ 10 acres

~ February 2022

(Confidential)

EdgeConneX

MLPT

JAK2

(Unknown)

August 2022

(Confidential)

AticaDC

SpaceDC

Eastern Jakarta

(Unknown)

February 2022

(Confidential)

EdgeConneX

MLPT

CONTACTS Click on each name to email them

Squared Capital

Indosat Ooredoo Jakarta

10,884m 2

June 2022

$117,200,000

Indosat Ooredoo

Squared Capital

Indosat Ooredoo Jatiluhur

8,421m 2

June 2022

$90,600,000

Indosat Ooredoo

ARIEF RAHARDJO Director, Strategic Consulting Indonesia Arief.rahardjo@ap.cushwake.com WIRA AGUS Director, Industrial & Land Sales, Indonesia wira.agus@ap.cushwake.com

Squared Capital

Lintasarta Technopark

6,229m 2

June 2022

$67,100,000

Indosat Ooredoo

Squared Capital

Lintasarta TBS

1,678m 2

June 2022

$18,100,000

Indosat Ooredoo

CONSTRUCTION UPDATES*

OPERATOR

DATA CENTRE

LOCATION BUILDING SIZE POWER

STAGE – EST. RFS

Greenland Intl. Industrial Center (GIIC) Bekasi

35,100m²

38.4MW

U/C

CGK2 Technopark BSD

Phase 2: 2MW

U/C

Banten

6,001m²

H2-02 JK5

Karawang Cikarang

12,000m² 16,666m²

12MW Phase 2: 7.5MW

U/C – Q4 2022 U/C

Edge1 Edge2

Jakarta Jakarta

7,500m² 17,150m²

Phase 2: 1MW 23MW

U/C U/C – Q4 2023

Phase 1: 12MW Phase 2: 12MW

U/C – Oct 2023 Planned

ID02

Kuningan

35,000m²

GIIC KIIC

Bekasi Karawang

20,631.42 m² 20,631.58m²

Phase 1: 5MW Phase 1: 5 MW Phase 2: 14.6 MW

U/C U/C U/C

Jakarta 2 Data Center

Kuningan

15,400m²

Next phase: 1.8MW U/C

JC2

Jawa Barat

22,800m²

22MW

U/C – Q4 2022

Pure Data Centres

Bekasi

20,000m²

20MW

U/C

GIIC

Bekasi

20,000m²

Phase 1: 16MW

U/C – Q1 2023

* Excludes Captive & ICT construction updates.

APAC EMERGING MARKET OVERVIEW

KEY INDICATORS*

35MW IN OPERATION

3 OPERATORS, 4 DATA CENTRES

170MW UC / PLANNED

16% VACANCY RATE

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

Colo Hyperscale Cloud Telco

MARKET OVERVIEW

Hyderabad is the capital city of the state of Telangana and one the major IT hubs in southern India. The state was amongst the first to launch a data centre policy in India, offering benefits and tax incentives for greenfield data centre operators. Moreover, with the local government being pro business and focused on ease of doing business, the city attracts interests of not just colocation operators, but also from the largest hyperscale cloud service providers. While the existing colocation operators have their data centres in the West cluster of Hyderabad (the Gachibowli/ HITEC City region) the hyperscale cloud operators have opted to create new clusters in southern Hyderabad. Availability of power, water and large land parcels at significantly lower cost are the key factors driving hyperscalers to the South cluster. Currently, the West cluster is comprised entirely of colocation operators whereas the South is entirely of greenfield self-build hyperscalers. Owing to the presence of the hyperscalers, three large colocation operators have already acquired land parcels in the South cluster which can potentially add 320 MW of capacity when fully built. Several other colocation operators are currently evaluating locations in southern Hyderabad such as Chandanvelly for their new facilities. Currently, Hyderabad accounts for only 5% of the total data centre inventory in India, however there is about 170 MW of supply in under construction/planned stages of development. When developed, Hyderabad will become the fourth largest data centre market in India, with Mumbai, Chennai and Delhi NCR being the top 3. At the end of Q4 2022, 100% of the operational capacity in Hyderabad was from colocation, however 48% of the under construction/planned capacity is scheduled to come from the hyperscalers, making the city the largest market for hyperscalers in India. Over the last couple of quarters there has been an uptick in demand from enterprise clients for data centre spaces and services. Therefore, data centre operators are looking to build capacity within the city limits to cater this demand.

ECOSYSTEM DEVELOPMENTS • One of the largest American CSP has announced plans to invest about US$4.4bn in Hyderabad by 2030, to build their second data centre cluster in India. • Hyderabad has become the only city in India where two of the top 3 CSP already announced development of their availability regions in the city. • Adani Group firm AdaniConneX is planning to build 1,000MW data centres -- almost double the present size of the total industry in India, over a period of 10 years with the first seven data centres of the company will come up in Mumbai, Chennai, Hyderabad, Delhi, Bengaluru and Pune. • CapitaLand India Trust Management Pte. Ltd., has signed a Memorandum of Understanding (MoU) with the state government of Telangana to invest INR 1,200 crores to develop a 36MW data centre at its International Tech Park Hyderabad in Madhapur.