Asia Pacific Data Centre Update

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.