APAC Data Centre H2 2023 Update

DATA CENTRE UPDATE

H2 2023

• PRIMARY MARKET OVERVIEWS: Mumbai, Tokyo, Sydney, Singapore, Seoul, Kuala Lumpur, Jakarta, Hong Kong • SECONDARY MARKET SPOTLIGHTS: Bangkok, Manila, Auckland, Ho Chi Minh • ASIA PACIFIC DATA CENTRE MARKETS MATURITY INDEX: 30 markets covered FEATURED IN THIS UPDATE

UPDATED 3 April 2024 (Q4 Update)

0

OUR PEOPLE

APAC DCAT LOCAL MARKET LEADS

ALEX MOFFATT Australia

JOHN SIU Hong Kong

CONFIDENTLY GLOBAL,

ANDREW CHAN Mainland China

DAVID CHEN Taiwan

Our Asia Pacific Data Centre Advisory Team (APAC DCAT), as part of our Global Data Centre Advisory Group, has created optimal solutions and location strategies to address highly complex IT requirements for enterprise clients across the region and globally since 2004. Our multi-disciplined team, consisting of experts across a spectrum of advisory services, focus specifically on the data centre market for seamless delivery. Every client requirement is unique; we have the experience to develop long-term strategies that drive wise investment decisions for enterprise users, colocation providers, hyperscalers, sector investors and developers.

GAURAV PANDEY India

WIRA AGUS Indonesia

Click on each name to email them

ASIA PACIFIC DATA CENTRE ADVISORY TEAM (APAC DCAT) VIVEK DAHIYA

TODD OLSON Executive Sponsor, APAC DCAT & Managing Director, Japan & Korea

REBECCA JUNG Associate Director, Business Development Services, Asia Pacific

TIMOTHY GREGERSEN Japan

JOHN PRITCHARD South Korea

Head of Asia Pacific Data Centre Advisory Team

TIFFANY GOH Malaysia

TODD HANRAHAN New Zealand

SHIVANI JADON Assistant Vice President, Data Centre & Cloud Advisory

JAMES NORMANDALE Alternative Assets Lead, Project & Development Services, Asia Pacific

GORDON MARSDEN Head of Capital Markets, Asia Pacific

CHRIS CUFF Data Centre Account Management, Asia Pacific

THERESE CASTRO Philippines

BRENDA ONG Singapore

AMERICAS

EMEA

GLOBAL

JACOB ALBERS Head of Alternatives Insights, Global Think Tank

ANDREW FRAY Head of EMEA Data Centre Advisory Team

JESSICA HOWE Vice President, Global Growth Verticals

GARETH POWELL Thailand

TRANG BUI Vietnam

1

INTRODUCTION

Asia Pacific * has surpassed 10GW of operational capacity with ~800MW of new capacity added in H2 2023 bringing the total to 10.6GW

ASIA PACIFIC DATA CENTRE UPDATE – H2 2023 Since our last H1 2023 update, the operational capacity of Asia Pacific’s* data centre markets has surpassed the 10GW mark, with ~800MW of new supply added in H2 2023 bringing the total regional live capacity up to 10.6GW. We continue to witness a robust development pipeline with 3.9GW under construction throughout the region and 9.4GW in planning stages, which is an increase of ~900MW since our last update. Many markets across Asia Pacific continue to witness rapid growth in terms of both operational and development capacities. Almost 80% of operational capacity is concentrated in the region’s top 5 markets – Mainland China (3.9GW), Japan (1.3GW), Australia (1.2GW), India (1.1GW) & Singapore (962MW). In H2 2023, India joined Mainland China, Japan and Australia as >1GW-sized markets and we anticipate that Singapore will reach this status sometime in 2024 with 962MW currently live. More than 50% of under-construction activity regionally is concentrated in Mainland China and India. However, with a development pipeline of 2.9GW & 1.7GW of combined under construction and planned activity in India and Japan respectively, we will see these markets on track to rival Mainland China as the only three markets in Asia Pacific to grow larger than 3GW over the next 5 years. However, due to the ongoing issues with power availability in Japan, especially in Tokyo, there may be delays in the overall timeline for the market to reach this milestone. Malaysia is the fastest growing market in the region with ongoing interest and growth in both Kuala Lumpur and Johor. With 1.2GW of development pipeline underway, Malaysia, which currently has 189MW of operational capacity will see a 600% growth in the next 5 years. In this report, our Asia Pacific Data Centre Market Maturity Index forecasts the potential evolution of 30 macro level markets across the region over the next decade and we provide an analysis of where much of the growth in the region will take place. The report will also delve in detail into eight prominent primary markets – Mumbai, Tokyo, Sydney, Singapore, Seoul, Kuala Lumpur, Jakarta and Hong Kong – and provide an overview of four secondary markets worth noting – Bangkok, Manila, Auckland and Ho Chi Minh . (For quarterly updates on the markets we operate in, including key indicators, view our capabilities brochure ).

~80% of operational capacity is concentrated in the region’s top 5 markets – Mainland China (3.9GW), Japan (1.3GW), Australia (1.2GW), India (1.1GW) & Singapore (962MW) India , with 1,074MW currently in operation, has joined Mainland China (4GW), Japan (1.3GW) & Australia (1,168MW) as >1GW -sized markets.

At a micro level, Tokyo , with 1,028MW currently in operation, has joined Beijing (1.8GW) & Shanghai (1.4GW) as the only three cities in the region with >1GW operational capacities. Singapore is expected to enter the GW range in 2024 with a current operational capacity of 973MW.

>50% of under-construction activity is concentrated in Mainland China (952MW) and India (1.1GW)

Malaysia is the fastest growing market in the region. With 1.2GW of development pipeline underway, Malaysia, which currently has 189MW of operational capacity will see a 600% growth in the next 5 years.

*For all analysis, Asia Pacific region includes Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam only.

2

H2 2023 UPDATE

ASIA PACIFIC This index is a statistical comparison that evaluates markets on more than 20 parameters, including IT MW capacities of each market’s operational, under construction, planned and land banked stages of development, the summation of which is visually indicated by the size of each market’s circle on the graph. The index also factors vacancy rates, number and average size of data centres based on their status, number of operators that have operational data centres in each market, and the new operators that are in process to enter the market. These data points are stacked into a parameter matrix and weighted to derive their overall growth score - the higher the growth score, the more evolved the market we forecast it will become. The commonly used references to describe data centre markets as primary and secondary have been broken down further into the below four categories: POWERHOUSE markets are the largest in region in terms of their overall data centre capacity and extensive development pipelines. Since our latest H1 2023 update, Mumbai overtook Beijing as the largest powerhouse market in Asia Pacific. Although its current live capacity is not as high as Beijing, Tokyo, Shanghai and Sydney, markets that have also retained their powerhouse status in H2 2023, a substantial development pipeline of almost 1.5GW and reports of extensive land banked sites in Mumbai show the potential for this fast-growing market to become a 3GW+ data centre epicentre in the coming years whilst the other four are looking to become >2GW-sized markets upon the full development of their existing pipeline. The live capacity of the five powerhouse markets account for 50% of the operational data centre capacity in Asia Pacific and about 40% of the under construction and planned capacities combined. ESTABLISHED markets, Singapore, Seoul, Kuala Lumpur, Johor, Jakarta, Hong Kong, Melbourne, Chennai and Hyderabad, are prominent markets that show potential to become close to or exceed 1GW-sized markets for

Our Asia Pacific Data Centre Maturity Index tracks 30 data centre markets across Asia Pacific* to compare their current maturity status as well as their potential evolution over the next decade.

their strategic geographic locations and connectivity. All nine markets in the established category account for about 25% of the total operational capacity in the region. Since our last update, Kuala Lumpur has jumped from the developing to established category as operators explore or continue to evaluate the market as part of their regional expansion strategies. Surprisingly, when taking into consideration the development and land banked pipeline in Kuala Lumpur, we foresee in the coming years that it has the potential to overtake Johor, which has recently been in the spotlight as a notable data centre market in Asia Pacific. With the exception of Singapore, whose growth has been hindered by the recent moratorium and limited supply, all established markets are growing rapidly. DEVELOPING markets, Delhi, Osaka, Guangzhou, Bangkok and Manila, typically have smaller live capacities and therefore account for less than 10% of the operational capacity in Asia Pacific. About 90% of the operational data centres in this category are smaller than 10MW capacity. However, local demand is growing in these markets and operators are planning ahead to meet future requirements. As a result, these markets typically have higher vacancies because the absorption rates are slower than the new supply that is being added. EMERGING markets cumulatively account for under 5% of the total operational capacity across the 11 markets we track in this category. Since our last update, we have included Batam, which has gained the attention of operators as a “spillover” market reaping the benefits of its proximity to Singapore. We also note that development and planning activity is growing faster than previously forecast in Taipei and anticipate that both Taipei and Batam will progress into the developing category in the coming years. The development pipeline in emerging markets is restrained owing to the conservative approach by operators in entering these markets until more evidence of demand can justify considerations for entry.

*For all analysis, Asia Pacific region includes Australia, Mainland China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam only.

3

NORTHERN VIRGINIA (NoVa): NoVa has continued its status as the preeminent North American data centre market despite growing headwinds for land and power availability. Recognised as the global leader in data centre capacity, NoVa’s operational capacity of 4.6GW is 130% higher than Beijing (2GW), the largest market in Asia Pacific. Moreover, the NoVa market alone is equivalent to 40% of the cumulative operational capacity and 35% of under construction capacity in Asia Pacific. Despite having extensive operational data centre capacity, NoVa continues to maintain amongst the lowest vacancy rates globally, at under 1%. This would suggest a roadmap for Asia Pacific powerhouse markets to continue to grow in scale while keeping steady occupancy going forward. SUMMARY: The primary markets in Asia Pacific continue on a steep growth trajectory with powerhouse markets Mumbai, Beijing and Tokyo forecast to grow into 3GW-sized markets. While many data centre markets across the region show significant capacities across all stages, including operational, under construction, and planned, they remain much smaller when compared to NoVa, which is the largest data centre market in the world. From a region-to-region comparison perspective, Asia Pacific’s population is ten times greater than that of the U.S., with similar operational capacities of around 10GW. This signifies that there is plenty of headroom for further growth and plenty more opportunities for the data centre sector in Asia Pacific. The tailwinds provided by technological advancements in recent years such as the implementation of cloud computing, deployment of 5G networks, government digitization initiatives and increasing mobile and internet penetration, especially in fast growing populations, have significantly accelerated the demand for data centres globally. However, the introduction and growing adoption of artificial intelligence (AI), and more significant;y, generative AI, is expected to drastically increase demand for more data centres, especially campuses that can cater for larger capacities, globally. Whilst the U.S. has started to see the tangible impact of AI as the next biggest influence on the sector since cloud computing, Asia Pacific is slower in experiencing its effect just yet. However, we anticipate that there is potential for AI to double the demand for data centres in the region over the next few years.

Total capacities indicated include operational, under construction, planned and land banked IT loads for Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and exclude Captive & ICT facilities.

4

ASIA PACIFIC POWERHOUSE MARKET

POWAI

KEY INDICATORS*

14 OPERATORS, 38 DATA CENTRES 1,473MW UC / PLANNED

537MW IN OPERATION 28% COLO VACANCY

THANE BELAPUR ROAD

* 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

PANVEL

MARKET OVERVIEW Mumbai remains as the data centre capital of India, taking up over 50% of the nation’s operational capacity and close to 50% of India’s total development pipeline of under construction and planned activity. In H2 2023, 75MW of operational capacity was added to the market with announcements from existing operators as well as new entrants, such as Colt DC, and more than 300MW under construction and planned. As a result, the vacancy rate of 19% reported in our H1 2023 update has increased to 28%. However, we anticipate that this will drop throughout the year due to increasing demand from enterprises and the government. Mumbai is expected to see a further 212MW go live in 2024, with Sify, NTT and CtrlS cumulatively taking up almost half of this upcoming IT load and announcing large investments into India’s data centre market. Some of the new entrants in Mumbai including Colt, AdaniConnex, & DigitalEdge have plans to build large data centre campuses in Mumbai, cumulatively adding ~700MW of capacity when fully built. India's Reliance Industries (RELI.NS), have committed to invest more than US$120M towards Mercury Holdings SG Pte, a JV with Brookfield Infrastructure and Digital Realty. NTT is the largest operator with a market share of 41% in terms of operational capacity, followed by CtrlS at 14%. Last year, the Japanese company who has its India head quarters located in Mumbai to support the demanding ICT requirements of hyperscalers and enterprises in the market, committed to invest US$11B towards expanding or upgrading its data centres globally, till 2027 with US$2B allocated specifically for the India market. The Maharashtra state government’s state specific data centre policy is still under consideration however the Information Technology and Information Technology Enabled Services Policy of Maharashtra State-2023 has been formally released. The policy includes data centre under offering incentives and waivers to data centre developers, operators and data centre parks. The benefits include stamp duty exemptions, additional Floor Space Index, power tariff subsidy, etc.

ECOSYSTEM DEVELOPMENTS • Adani Group has announced a $6B plan to expand data centre infrastructure across Maharashtra, including Mumbai. With data centre development operated under the AdaniConneX brand in partnership with EdgeConneX, Adani Group has signed an MoU with the local government to build 1GW of data centre capacity over the next ten years. Adani Group will also supply renewable power to these developments through its extensive energy infrastructure. • Amazon Data Services (ADS) , an arm of AWS , has leased a 4-acre parcel of land in the Powai suburb of Mumbai. Last year, ADS signed a landlease for an adjacent 5.5-acre parcel from the same owner, Larson & Toubro. With an all-in landlease total of $180.5M over the course of a 15-year period, ADS can move forward on data centre development of this site as well as its project in Thane, where it acquired 54-acres last year. • CapitaLand India Trust secured a $156M construction loan from JP Morgan for the 108MW DC Navi Mumbai 1. • Colt Data Centre Services (DCS) announced its first data centre in India in Navi Mumbai, built to Tier 3 standards and supporting 118MW of IT power capacity over 15 acres of land. The first phase of 18MW has commenced and is available. • Digital Connexions , a newly formed JV between Reliance Industries , Brookfield Infrastructure and Digital Realty , has acquired 2.15 acres of land in Mumbai to build a 40MW data centre. • Equinix has invested $42M in a new data centre in Mumbai, to drive digital transformation and bolster digital capabilities for both local and international businesses. This will be Equinix’s fourth facility in the market. • Yotta Data Centres plans to launch a GPU cloud service utilizing its data centres in Navi Mumbai and Delhi. The service will be the first of its kind in India, with Yotta also planning further expansion plans for its data centre portfolio across India, Bangladesh and beyond.

MUM INDIA

H2 23

RECENT PROPERTY SALES SITE SIZE

SALE DATE

SALE PRICE (US$)

BUYER

SELLER

Powai Landlease

4 acres

Oct 2023

$25.6M (total payment)

AWS

Larson & Toubro

Mahape Land

2 acres

Jul 2023

$5.8M

CtrlS

Greenscape Developers

CONTACTS Click on each name to email them

CONSTRUCTION UPDATES*

OPERATOR

DATA CENTRE

LOCATION

BUILDING SIZE POWER (TOTAL CAPACITY†) STAGE - EST. RFSˆ

VIVEK DAHIYA Head of Asia Pacific Data Centre Advisory Team vivek.dahiya@cushwake.com SHIVANI JADON Assistant Vice President, Data Centre & Cloud Advisory shivani.jadon@cushwake.com GAURAV PANDEY Assistant Vice President, Data Centres gaurav.pandey1@cushwake.com

BBY1

Navi Mumbai

32,500m 2

8MW

U/C - 2024

Aroli Data Centre Campus Mumbai Hyperscale Datacenter 5

Navi Mumbai

16,000m 2

30.5MW

U/C – 2024

Navi Mumbai

35,000m 2

37MW

U/C - 2025

Mumbai 1

Navi Mumbai

80,000m 2

12MW (30MW)

U/C - 2024

NMP 1

Navi Mumbai

33,000m 2

2.5MW

U/C - 2024

Airoli

Navi Mumbai

60,000m 2

15MW (60MW)

U/C - 2025

25MW 25MW

U/C – 2025 U/C – 2025

NTT Mumbai DC 10 NTT NAV 2 DC13 Campus

Chandivali Navi Mumbai

50,000m 2 50,000m 2

60MW

U/C

Navi Mumbai Campus Navi Mumbai

75,000m 2

Sify Airoli 2 Sify Rabale Tower 5

11,148m 2 50,000m 2

4.8MW 38.8MW

U/C U/C

Navi Mumbai

35MW

U/C

STT Mumbai DC 4

Navi Mumbai

32,000m 2

Web Werks Mumbai 2 Navi Mumbai

7,620m 2

6.3MW

U/C

* Excludes Captive & ICT construction updates. †Total IT Load ˆ RFS: Ready for Service

6

ASIA PACIFIC POWERHOUSE MARKET

KEY INDICATORS*

INZAI

33 OPERATORS, 110 DATA CENTRES 1,389MW UC / PLANNED

1,028MW IN OPERATION 8% COLO VACANCY

CENTRAL TOKYO

* 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 As forecast in our H1 2023 update, Greater Tokyo has developed into a 1GW market with an additional 126MW of operational IT load added in the last 6 months, taking up. In H2 2023, Inzai saw an increase of 33MW and the rest of Tokyo, including prefectures such as Kanagawa and Chiba, the city of Oyama added another 75MW of operational IT load. Housing the largest cluster of data centres in the Asia Pacific region and taking up over 80% of Japan’s total operational capacity, the growth of data centres in Tokyo is attributed to increasing cloud adoption, rising levels of economic and technological development, and government efforts for a digital society and to digitalise industries. With challenges in securing powered sites in Central Tokyo and Inzai, developers are increasingly looking for available power in new submarkets that can satisfy their growth plans. The Japanese government has been attempting to push data centres from established hubs of Tokyo and Osaka through the Digital Garden City Initiatives and enlisting large cooperation with local governments. With the government support in developing land and necessary infrastructure could save up to one-third of construction costs, large regional center started to emerge led by hyper scalers seeking alternative sites outside the Greater Tokyo Area. Within the Greater Tokyo Area, already 96% of UC and Planned pipeline are also located outside the central Tokyo, as more investors seeking lower land cost and available power supply in outer area. There is a good mix of international and local players in the market such as @Tokyo who leads the Greater Tokyo market in terms of total operational IT load, followed by NTT, Equinix and KDDI. New players who entered the market include CEC, Canon IT Solutions, I-Net Cooperation and TIS INTEC Group.

ECOSYSTEM DEVELOPMENTS • AirTrunk commenced the construction of the third phase of AirTrunk TOK1, a massive data centre project in East Tokyo. With a capacity of over 300MW, the new facility will be purpose-built to cater to the needs of a major technology client. • Alation, Inc. announced the launch of its new data centre located in Tokyo. Customers can now process and store data locally to meet data residency requirements. This is the fifth Alation facility globally, adding to existing locations in the United States, Europe, Singapore, and Australia. • Amazon Web Services (AWS) is planning to invest over US$15.24B in expanding its nation-wide cloud computing infrastructure by 2027. As part of this investment, the company will seek to expand its data centre facilities in Tokyo and Osaka, with an expected annual expenditure of $5 billion over the next three years. • Equinix announced the opening of TY13x, its second Tokyo-based xScale data centre, providing 8MW in the first phase and will provide a total capacity of 36MW at full built • GLP has started on its first data centre project in Japan, a 31 MW campus in Western Tokyo. The first 10MW phase of the project is expected to deliver in Q1 2025. GLP’s larger plans for Japan include a pathway to over 600MW of IT capacity over four planned Tokyo campuses and one planned Osaka campus. • NTT Global Data Centers Japan (NTT GDCJ), and TEPCO Power Grid (TEPCO PG) have announced an agreement to create a new joint company. This venture will focus on developing and operating data centres in the Inzai-Shiroi area of Greater Tokyo.

TYO JAPAN

H2 23

RECENT PROPERTY SALES SITE / PROPERTY SIZE

SALE DATE

SALE PRICE (US$)

BUYER

SELLER

Gotenyama SH Bldg

20,000 m 2

Oct 2023

$469M

TIS Inc

Sekisui House REIT

Hino Motors Factory Site 28 acres

Sep 2023

$344M

Mitsui Fudosan

Hino Motors

CONTACTS Click on each name to email them

CONSTRUCTION UPDATES*

OPERATOR

DATA CENTRE

LOCATION

BUILDING SIZE POWER (TOTAL CAPACITY†) STAGE - EST. RFSˆ

TODD OLSON Executive Sponsor,

TOK1 TOK2

Inzai Ome

164,270m 2 110,000m 2

27.5MW (288MW) 60MW (108MW)

U/C U/C – 2024

APAC DCAT & Managing Director, Japan & Korea todd.olson@ap.cushwake.com MARI KUMAGAI Director, Head of Research & Consulting, Japan mari.kumagai@cushwake.com KOSUKE OGI Executive Director, Capital Markets, Japan Kosuke.Ogi@ap.cushwake.com TIMOTHY GREGERSEN Senior Manager, Investment Sales, Japan timothy.gregersen@ap.cushwake.com

12MW (24)

U/C – 2024

CC3

Chuo City

32,000m 2

Inzai 4

Inzai

18,000m 2

23.1MW (36.3MW)

U/C

TY07

Chuo City

6,800m 2

1.2MW (5MW)

U/C – 2025

TY11 TY15

Koto City Minato City

24,847m 2 110,000m 2

2.6MW 3.6MW (7.5MW)

U/C U/C – 2024

19.5MW (39MW)

U/C - 2024

Fuchu Campus

Fuchu

40,000m 2

Tokyo NRT11-13

Inzai

84,000m 2

12MW (84MW)

U/C – 2024

Kanagawa Data Center

Sagamihara City

30,984m 2

12MW

U/C – 2024

TY1

Saitama

58,860m 2

48MW (96MW)

U/C – 2024

GOTEMBA Data Centre ASAMA Data Centre Campus

Kawasaki / Kanagawa Kashiwa

17,506m 2 19,561m 2

18MW 6MW (54MW)

U/C U/C

6MW (36MW)

U/C – 2024

TKY01

Inzai

44,032m 2

Inzai Campus

Inzai

60,000m 2

15MW (60MW)

U/C – 2024

* Excludes Captive & ICT construction updates. †Total IT Load ˆ RFS: Ready for Service

8

ASIA PACIFIC POWERHOUSE MARKET

NORTH SHORE

KEY INDICATORS*

18 OPERATORS, 48 DATA CENTRES 1,045W UC / PLANNED

729MW IN OPERATION 12% COLO VACANCY

WESTERN SYDNEY

GREATER WESTERN SYDNEY

* 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

SYDNEY CBD & OUTSKIRTS

MARKET OVERVIEW Sydney is Australia’s largest data centre market, taking up over 60% of the nation’s total operational IT local and under construction/planned development pipeline. Greater Western Sydney, is the market’s biggest cluster, accounting for almost half of Sydney’s operational capacity and almost 70% of its under construction/planned development pipeline. Colocation vacancy rates have remained steady since our last H1 2023 update. The market is also witnessing a significant jump in data centre sizes. The average size of data centres currently live and operational is 15MW, however, the facilities under construction have an average capacity of 36MW. Sydney, followed by Melbourne, continues to attract the attention of global cloud service providers, operators and investors who see the market as an appealing location for data centre investment due to anticipated growth fueled by gaming, content streaming, industrial IoT applications, and AI. Microsoft announced plans to invest US$3.2B towards their hyperscale cloud computing and AI infrastructure plans across Australia, revealing plans for nine data centres in Sydney, Melbourne, and Canberra. Macquarie Data Centres also announced plans to expand their IC3 Super West facility in Sydney to 45MW IT load — a 41% increase on the original plans — to facilitate the rapidly rising demand for AI workloads. With aims to address growing demand for liquid-cooled solutions from enterprises in the market, Australian cloud service provider, ResetData, in partnership with Dell Technologies, Intel, Castrol BP, and Submer and Seimon, unveiled a new test and simulation lab for its liquid-cooled data centre server technology in Sydney CBD. It will allow customers to simulate high performance applications such as AI and machine learning workloads in a liquid-cooled environment. Equinix has also announced plans to expand support for liquid cooling technologies to support compute intensive workloads like AI to over 100 of its international business exchange (IBX) data centres worldwide, including those in Sydney and Melbourne.

ECOSYSTEM DEVELOPMENTS • AirTrunk has topped off 30MW of the first phase of its SYD2 campus which will have a total of 120MW upon completion. The company has also gained SSD approval for its SYD3 campus in North Sydney, with a total planned capacity of 320MW • DCI Data Centers has gained SSD approval for SYD03, a 32MW facility built adjacent to its SYD01 facility in Huntingwood. • Macquarie Cloud Services and Virtual IT Group (VITG) have signed up on providing a sovereign cloud service for the latter's healthcare clients. • NEXTDC has completed construction of their S3 data centre in Artarmon, which interconnects to their existing S1 and S2 data centres in Macquarie Park. They have also lodged an SSD applications for S4 in Horsley Park, which is planned to have a total capacity of 300MW and S5 in Macquarie Park, which is planned for60MW. • Stockland have lodged an SSD application for a 35MW second facility in Macquarie Park with an onsite substation. • TPG Telecom Group –occupied data centre in Glebe was marketed for sale in September 2023 with price expectations of AUD$45M (US$29M). The current lease is for a 15-year term with a further 10-year option. Expressions of interest closed in October with no announcements yet on the confirmed buyer.

SYD AUSTRALIA

H2 23

RECENT SITE SALES SITE / PROPERTY

SIZE

SALE DATE SALE PRICE (US$)

BUYER

SELLER

Fujitsu Western Sydney

17,000 sqm Jul 2023

(undisclosed)

UniSuper

NPS

18 McKinnon Ave

1,386 sqm Jul 2023

$4.7M

Titus Pty

Telstra

CONTACTS Click on each name to email them

CONSTRUCTION UPDATES*

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

OPERATOR

DATA CENTRE

LOCATION

BUILDING SIZE

POWER (TOTAL CAPACITY†)

STAGE - EST. RFSˆ

SYD2

Lane Cove

39,320m 2

70MW (120MW)

U/C - 2024

STEWART ARMSTRONG Associate Director, Client Services, Project Management stewart.armstrong@cushwake.com

75MW / 33MW

Planned – 2025

EC5 / EC6

Eastern Creek

46,182m 2

32MW

Planned

SYD02/03

Eastern Creek

10,865m 2

PETER BATH Valuer, Valuation Services peter.bath@cushwake.com

9MW

Planned - 2024

Erskine Park 2

Erskine Park

16,350m 2

SY5 SY9X / SY10X

Alexandria Rosehill

35,326m 2 29,612m 2 30,000m 2 210,798m 2

12MW + 12MW 15MW / 28MW

U/C - 2024 / 2025 2025 / 2024

28MW (68MW) 100MW + 300MW

U/C – 2024 2026 / 2027

Sydney S3 Sydney S4

Artarmon Horsley Park

25MW

U/C

Athena

Macquarie Park 16,215m 2

* Excludes Captive & ICT construction updates. †Total IT Load ˆ RFS: Ready for Service

10

Colo Hyperscale Cloud Telco

ASIA PACIFIC ESTABLISHED MARKET

KEY INDICATORS*

LOYANG

25 OPERATORS, 51 DATA CENTRES 332MW UC / PLANNED

973MW IN OPERATION 1% COLO VACANCY

BEDOK TAMPINES

PAYA LEBAR

SUNVIEW - JURONG

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

MARKET OVERVIEW

Despite the high property and construction costs when compared to neighbouring South-East Asian markets and other primary markets in Asia Pacific, Singapore continues to be a leading data centre hub for it’s regional and global connectivity. It will soon follow Tokyo as Asia Pacific’s next 1GW city market and continues to boasts the lowest colocation vacancy rate of 1% within the region, strongly indicating that demand outstrips supply. Demand continues to be fueled by Western and Chinese hyperscalers in the market, as well as key sectors such as banking and finance. The 80MW of capacity awarded to Equinix, GDS, Microsoft, and the AirTrunk / ByteDance consortium following the results of the Singapore Economic Development Board (EDB) and the Infocomm Media Development Authority (IMDA) pilot Data Centre – Call for Application (DC-CFA) exercise, contributed towards the 300+MW development pipeline, of which 103MW was added in H2 2023. In line with the sovereign state’s push towards more sustainable data centres operating practices, key operators and other related companies (as detailed under the ecosystem developments section of this Singapore update) remain focused on keeping ESG at the centres of their data centre strategies. Singtel, began construction of its largest data centre in Singapore, DC Tuas, which will be the highest power density and hyper-connected green data centre in Singapore. Upon completion in 2025, the facility, which is directly connected to several international submarine cables, will provide a 58MW IT power load capacity and incorporate next-generation cooling capabilities that are able to support customers’ rack density of up to 80kW per rack and boast a PUE below 1.3. Similarly, OVHcloud has expanded its footprint in Singapore with its second data centre and the most sustainable of all their data centres in Asia Pacific, boasting a PUE as low as 1.29 and a WUE (Water Usage Effectiveness) of 0.30l/kW. Global cloud service providers (CSP’s), including Google, Microsoft and AWS remain as the largest CSP’s in Singapore. The colocation operators such as STT Global Data Centres, Equinix, Digital Realty, Singtel, AirTrunk, Keppel Data Centres and Global Switch cumulatively account for more than 55% of operational capacity in Singapore.

ECOSYSTEM DEVELOPMENTS • Digital Realty announced a new cooling tower initiative, a first of its kind in Singapore, involving a process known as DCI electrolysis, at its SIN10 data centre, which aims to pioneer new levels of water conservation and efficiency in its data centres in Singapore. Since implementing the technology, the company reduced monthly blow-down water discharge at the facility by 90% and improved their water usage efficiency (WUE) by 15%. • Energy Market Authority (EMA) are looking to increase its generation capacity over the next five years, with greener and more energy efficient plants. The announcement was made at the ground-breaking ceremony of Keppel’ s new hydrogen-ready power plant on Jurong Island. The new plant will have a lower carbon footprint than conventional power plants and can operate on fuels with 30 per cent hydrogen content. • GDS has announced a partnership with SK ecoplant , an energy and environment affiliate of South Korean conglomerate SK Group , for the trial of fuel cell technology to power supply solutions for GDS's upcoming data centre in Singapore. • Hydroleap , a next-generation water technology company, has partnered with IX Technology , a Singapore based provider of data centre mechanical and electrical (M&E) infrastructure solutions, to improve water management in data centres across Singapore, Malaysia and Vietnam. Hydroleap’s patented Electro Oxidation Technology (HL-EO), which is being used by major blue-chip data centre companies and CapitaLand, is aimed at transforming water management in data centre cooling towers.

SGP SINGAPORE 23 H2

RECENT SITE SALES SITE SIZE

SALE DATE SALE PRICE (US$)

BUYER

SELLER

Singtel Portfolio

20% stake

Nov 2023

$806M

KKR

Singapore Telecom

CONSTRUCTION & PLANNED UPDATES*

CONTACTS Click on each name to email them

OPERATOR

DATA CENTRE

LOCATION BUILDING AREA POWER (TOTAL CAPACITY†) STAGE - EST. RFSˆ

BRENDA ONG Executive Director, Logistics & Industrial, Singapore brenda.ong@cushwake.com XIAN YANG WONG Head of Research, Singapore xianyang.wong@cushwake.com JAMES B. NORMANDALE Alternative Assets Lead, Asia Pacific Project & Development Services james.normandale@cushwake.com

SGP1 SGP2

Loyang Loyang TBC Tai Seng Loyang

48,000m 2 12,000m 2 N/A 23,214m 2 13,000m 2

6MW 23MW 20MW 6MW 20MW

U/C Planned Planned Planned Planned

SG1 SG4 SG6

20MW

Planned

SG1

TBC

13,000m 2

Singapore 7

Kallang Way

44,279m 2

20MW

U/C

RC1

Tai Seng

9,032m 2

2MW

U/C

YTL Data Center

Thomson

13,886m 2

1MW

U/C

58MW N/A

U/C - 2025 Planned

Tuas Data Centre DC West

Tuas Ave 3 Yung Ho Road

40,000m 2 52,954m 2

* Excludes Captive & ICT construction updates. †Total IT Load ˆ RFS: Ready for Service

12

ASIA PACIFIC ESTABLISHED MARKET

INCHEON/ W.GYEONGGI

SW SEOUL

GANGAM

KEY INDICATORS*

21 OPERATORS, 43 DATA CENTRES 608MW UC / PLANNED

453MW IN OPERATION 9% COLO VACANCY

STH GYEONGGI

* 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 Greater Seoul takes up 77% of Korea’s data centre market, a market share decrease from 85% since our H1 2023 update. This is attributed to the government’s aims to promote and incentivise data centre investment into other regions of Korea to balance the country’s power usage profile, with data centres operating in Gangwon, Pohang and Sejong. Despite this, 100MW of operational supply was added to Seoul in H2 2023, with Samsung SDS, Hanwha S&C, Daou Technology and IGIS Asset Management entering the market. The surge of new supply has increased the vacancy rate from 4% to 9% in H2 2023, which will likely be further impacted with an additional 97MW of supply pipeline planned in Gyeonggi from IGIS Asset Management and Daou Technology. Sourcing sites with sufficient power for data centres remains a challenge in Greater Seoul. To address data centre invoked power concerns, an audit was conducted by KEPCO in mid-2023 to assess data centre power applications submitted from 2020 to 2023. The results uncovered opportunistic strategies by investor groups, including several power applications by single entities across numerous sites, and even multiple power applications for single sites. As such, KEPCO has responded through tightening regulations to require power impact assessments and by granting additional powers to revoke power contracts in the event documents have not been signed, or power usage has not commenced within the statutory timeframes. To allay the concerns of residents around data centre developments, ease pressure on the grid, and plan ahead for network improvements, the government is promoting the concept of “data centre districts” outside of Greater Seoul, equipped with the requisite power, zoning and infrastructure. Governments in provincial locations are broadly supportive of data centre development where land is more readily available and power concerns are fewer. Owing to the large population, customer base, and strong latency profile, Greater Seoul remains the target for hyperscale and colocation groups. However, with the challenges that prevail more attention is being afforded to secondary and tertiary cities. Locations such as Busan, Korea’s second largest city, may benefit due to the strong cable connectivity, developed infrastructure, and strong labour pool.

SEONGNAM

ECOSYSTEM DEVELOPMENTS • Digital Edge secured its first-ever green loan of US$335 to finance the initial phase of development of South Korea’s largest commercial colocation facility, SEL2, a 100MW data centre located in Incheon. The first phase if expected to be ready for service in late 2024. • Digital Realty revealed the availability of a new AWS Direct Connect on-ramp at its ICN10 data centre in Seoul, which will enable customers to access AWS services either through a single cross connect or via ServiceFabric , Digital Realty's global service orchestration platform. • Equinix announced the launch of SL4, a retail International Business Exchange (IBX) retail colo facility, housed inside SL2x, the company’s upcoming xScale hyperscale data centre located in Goyang-si, Gyeonggi. • South Korean tech giant, Kakao , has completed construction of its first in-house data centre located on the Hanyang University’s Erica campus in Ansan, Gyeonggi. The facility has been designed to withstand natural disasters such as fires, earthquakes, and floods. Kakao experienced a significant outage in 2022 due to a fire caused by lithium-ion batteries at an SK Group data centre. The outage led to a government investigation and police raids and the company was required to implement an emergency response system and compensate businesses and users that were impacted by the fire. • LG U+ has completed construction of its second hyperscale data centre, Pyeoungchon 2 Center, in Anyang si, Gyeonggi. Spanning over 12 floors, three of which are underground, the will house more than 200,000 servers and a geothermal heating and cooling system.

RECENT SITE SALES SITE SIZE

SEL SOUTH KOREA

H2 23

SALE DATE SALE PRICE (US$)

BUYER

SELLER

670-4 Seonggok-Dong 3 acres

Aug 2023

$94M

Korea Alt Asset Mgmt

Daejoo NI

CONSTRUCTION & PLANNED UPDATES*

CONTACTS Click on each name to email them

OPERATOR

DATA CENTRE

LOCATION BUILDING SIZE POWER (TOTAL CAPACITY†) STAGE - EST. RFSˆ

Pyeongchon Data Centre Youngdeungpo Data Centre

Anyang Youngdeungpo

25,000m 2 25,000m 2

26MW (26MW) Phase 1: 13MW (26MW)

U/C – 2024 U/C – 2025

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

Phase 1: 18.75MW (75MW)

U/C - 2024

SEL2

Incheon

80,000m 2

Digital Seoul 2 (ICN11)

Gimpo

90,115m 2

Phase 1: 10.6MW (64MW)

U/C – 2024

Incheon IDC

Incheon

7,279m 2

6MW (6MW)

U/C – 2024

RORY NEWMAN Senior Manager,

Phase 1: 10MW (40MW) Phase 2: 30MW Phase 1: 12MW (24MW) Phase 1: 24MW

U/C – 2025 Planned - 2025 U/C – 2024 Planned – 2024

Gangnam IDC

Seocho

30,714m 2

Leasing Tenant Representation rory.newman@cushwake.com

SL2x SL3x

Hyangdong

13,000m 2

Phase 1: 7MW (14MW)

U/C - 2024

Gwacheon Data Centre

Gwacheon

10,000m 2

Hanam Data Centre

Hanam

41,917m 2

25MW (25MW)

Planned - 2024

Gasan Iwill Data Centre

Geumcheon

36,518m 2

Phase 1: 13MW (26MW)

U/C – 2025

Pacific Sunny Data Centre Jukjeon

99,070m 2

Phase 1: 32MW (64MW)

U/C – 2024

Pyeongchon 2

Anyang

40,450m 2

Phase 1: 12MW

Planned

Bucheon AI Data Centre

Bucheon

4,875m 2

4.8MW (4.8MW)

U/C – 2024

Incheon Data Centre

Incheon

50,000m 2

Phase 1: 48MW

Planned - 2024

* Excludes Captive & ICT construction updates. †Total IT Load ˆ RFS: Ready for Service

14

ASIA PACIFIC ESTABLISHED MARKET

KEY INDICATORS*

94MW IN OPERATION 17% COLO VACANCY

12 OPERATORS, 33 DATA CENTRES 594MW UC / PLANNED

KUALA LUMPUR

* 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 our last update, Kuala Lumpur overtook Johor in our maturity market index. Whilst Johor has been a focus for hyperscalers as an alternative location to Singapore, Kuala Lumpur has been attracting colocation operators focused on servicing enterprise customers at a retail level and hence, the data centres in the market are much smaller in scale. The average size of operational data centres in Kuala Lumpur is 3MW, compared to 16MW in Johor, whereas those under construction in Kuala Lumpur is 6MW compared to 20MW in Johor. There are also only 6 operational data centres in Johor compared to Kuala Lumpur’s 33. Nonetheless, Kuala Lumpur stands as a prominent data centre hub in its own right, taking up almost half of Malaysia’s data centre market in terms of both current operational IT load as well as the development pipeline. The government has established various freezones to meet industrial requirements in Kuala Lumpur which make it an attractive market for data centre investors, developers and operators. Clusters such as Cyberjaya provide essential digital infrastructure to support data centre development and is also a preferred location for high-tech science parks where there is a congregation of research and development facilities. Malaysian Prime Minister, Anwar Ibrahim, highlighted the city’s potential to become the preferred investment location for tech companies in the future. Furthermore, Malaysia’s New Industrial Master Plan 2030, which seeks to elevate economic sophistication and swiftly integrate advanced technology infrastructure for Malaysia to achieve developed nation status, will likely draw more data centre investments into the market in coming years. Such government initiatives have drawn major operators into Malaysia, which is evident in the 600% growth we forecast in Malaysia’s data centre sector in the next decade.

CUBERJAYA

ECOSYSTEM DEVELOPMENTS • Damac , a United Arab Emirates real estate developer, announced plans to invest US$52.4m to establish a data centre on a 1.21ha site, as part of their data centre entry plans into Asia Pacific. They have reportedly also secured land in Indonesia and Thailand for proposed data centre developments.. • EdgeConneX have announced their entry into the Malaysia with plans to build several data centres offering nearly 300MWs of capacity in three separate locations in Kuala Lumpur CBD, Cyberjaya and Bukit Jalil. • KKR have signed an agreement to invest US$400M in Malaysian subsea telecommunications cable service provider OMS Group . The investment will be used on cable landing stations and subbsea cable routes. • NTT have further committed to the growth of the data centre investments in Malaysia with the announcement of their sixth facility, CBJ6, on their NTT Cyberjaya campus alongside their CBJ5 site built in 2021. With an investment of over US$50M, the site will add 7MW critical IT load bringing the total of the two sites to 22MW. • STT GDC and Basis Bay announced the formation of a joint venture partnership, for the development, construction, and operation of data centre projects in Kuala Lumpur and Cyberjaya. The new JV plans to build their first data centre campus in Cyberjaya over three acres of land, delivering close to 20MW of IT load. • TM Global solidified its commitment to advancing Malaysia's digital landscape by announcing its recent participation as a consortium member of the Asia Link Cable System (ALC) . This strategic move positions Malaysia as one of the key destinations connecting Malaysia to Hong Kong.

KL MALAYSIA

H2 23

CONSTRUCTION & PLANNED UPDATES*

OPERATOR

DATA CENTRE

LOCATION

BUILDING SIZE POWER (TOTAL CAPACITY†) STAGE - EST. RFSˆ

Cyberjaya Bukit Ceylon

Cyberjaya Kuala Lumpur

22,300m 2 5,000m 2

Phase 1: 8MW (19MW) 5MW

U/C- 2024 U/C- 2025

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

8MW 5MW 8MW

Kuala Lumpur Cyberjaya Kuala Lumpur

Planned Planned Planned

48,000m 2 52,940m 2 20,000m 2

Miranti Park MY02 MY03

22.4MW 6MW 22.4MW

Planned Planned Planned

Bukit Jalil CBD Cyberjaya

Kuala Lumpur Kuala Lumpur Cyberjaya

22,222m 2 23,750m 2 22,222m 2

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

Phase 1: 2.5MW(5MW)

U/C 2024

KL1 IBX

Cyberjaya

14,000m 2

12MW

U/C-2024

Cyberjaya

Cyberjaya

17,427m 2

KL1

Kuala Lumpur

4,211m 2

7.5MW

Planned

CBJ6

Cyberjaya

9,967m 2

7MW

Planned

CJ1

Cyberjaya

3,716m 2

1MW

Planned

Cyberjaya DC.2 Kuala Lumpur 1

Cyberjaya Cyberjaya

3,500m 2 20,625m 2

2.8MW 4.15MW

Planned-2024 Planned-2025

7.5MW

Planned

KVDC

Cyberjaya

18,580m 2

5MW 16MW 25.6MW

Iskandar Puteri Cyberjaya Cyberjaya

U/C - 2024 U/C- 2024 Planned

77,339m 2 44,800m 2 2,56,000m 2

KUL13 KUL14 KUL2

Sentul Data Center 1

Kuala Lumpur

9,930m 2

1MW

Planned

* Excludes Captive & ICT construction updates. †Total IT Load ˆ RFS: Ready for Service

16

CENTRAL JAKARTA

ASIA PACIFIC ESTABLISHED MARKET

CIKARANG

KEY INDICATORS*

202MW IN OPERATION 34% COLO VACANCY

20 OPERATORS, 43 DATA CENTRES 542MW UC / PLANNED

AH152 - BOGOR

* 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 Indonesia’s data centre market continues to grow, buoyed by the government investment into the country’s digital economy and its acceleration of digital transformation across all ministries, government agencies, and state-owned enterprises. Coupled with the huge domestic demand for digital services that is also propelling the data centre industry Greater Jakarta continues to rapidly transform into a global data centre hub. Although Batam, due to its close proximity to Singapore is increasingly becoming popular, Jakarta, the current capital of Indonesia until the future capital will be inaugurated in late 2024, and its surroundings of Greater Jakarta, takes up more than 90% of Indonesia operational IT capacity at 202MW, an almost 20% increase since our last update in H1 2023. Since the government started to ease its stance on data centre regulations in recent years, Jakarta offers promising investment prospects with government provided tax incentives and exemptions to boost the digital economy. In addition, the government is continuing its efforts to promote data localisation in Indonesia and the Indonesian Ministry of Communication and Information Technology (Kominfo) has released a draft proposing amendments to the country's data protection regulations. They are now seeking public comments on these proposed changes, reflecting an effort to enhance data privacy and security in Indonesia. Hyperscale activities have previously been focused on East Jakarta, around the availability zones of AWS and Microsoft towards the Bekasi / Kaarawang corridor, east of Jakarta where greenfield developments have become increasingly popular due to better infrastructure and lower land prices. However, land availability in established industrial estates are starting to decrease due to the influx of data centre development. With many facilities coming live in 2024, competition is expected to be strong in Greater Jakarta and exert pressure on pricing in the market Regarding sustainability, the country aims to accelerate renewable energy production. The Just Energy Transition Partnership (JETP), a US$20B initiative involving Indonesia, the U.S., and Japan, aims to retire coal-fired power plants and promote renewable energy for carbon neutrality by 2050.

KARAWANG JATILUHUR

ECOSYSTEM DEVELOPMENTS • Bersama Digital Data Centre plans to build a 32MW tier IV data centre, BDDC JST1 in Jatinegara, East Jakarta • EdgeConneX received US$403.8 million in sustainability-linked (SLL) financing Sumitomo Mitsui Banking Corporation (SMBC) by for its 120MW data centre campus development in Jakarta. The financing represents the first-ever in Indonesia’s data centre market, being the inaugural SLL transaction for EdgeConneX in the region. • NEC Corporation is set to construct the Patara-2 submarine cable system in collaboration with Telkom Indonesia to enhance international connectivity, supporting the growing demand for high-speed data transmission in the Asia-Pacific region. • Princeton Digital Group has launched its 6th facility of 22MW hyperscale data centre facility (JC2) in Cibitung. They have also signed an energy deal with PT Cikarang Listrindo Tbk to power one of its 30MW data centres with biomass-powered capcity, the first of its kind in Indonesia. They are also reportedly planning to raise $1 billion in debt financing to support their data centre expansion plans in Indonesia. • Tencent Cloud announced its collaboration with Digital Edge , to improve connectivity via integration with the Edge Peering Internet Exchange in Jakarta as a part of its commitment to foster connectivity and strengthen digital infrastructure in emerging markets