Asia Pacific Data Centre Update

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.