Asia Pacific Data Centre Update

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.