Asia Pacific Data Centre Update

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.