APAC Data Centre H2 2023 Update

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.