APAC Data Centre H2 2023 Update

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.