APAC Data Centre H2 2023 Update

H2 23 APAC EMERGING MARKETS

ASIA PACIFIC DEVELOPING MARKETS

CONTACTS Click on each name to email them

KEY INDICATORS*

GARETH POWELL Country Head, Thailand gareth.powell@cushwake.com SARAWUT TIKHACHON Senior Market Analyst – Research & Consulting, Thailand sarawut.tik@cushwake.com NITA ATHAKAIWALVATHI Senior Manager, Investment & Advisory, IFM, Thailand nita.ath@cushwake.com CLARO CORDERO JR. Director, Research, Consulting & Advisory Services, Philippines claro.cordero@cushwake.com THERESE CASTRO Director, Head of Tenant Advisory Group, Philippines tetet.castro@ap.cushwake.com DAVID PASTRANA Leasing Manager, Tenant Representation, Philippines david.pastrana@cushwake.com

24 OPERATORS, 50 DATA CENTRES

59MW IN OPERATION

23% COLO VACANCY

307MW UC / PLANNED

* Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT. Bangkok’s data centre market is forecast to grow exponentially over the next two years with an additional 88MW added in H2 2023 towards the development pipeline. CtrlS have announced plans to develop a 150MW data centre campus in Chonburi, whilst new entrant, OneAsia, plans to develop a 14MW data centre in the Pathum Thani region. SingTel and Evolution Data Centers are also reportedly exploring options to build hyperscale facilities in Bangkok. The growth of Bangkok’s data centre market will be further fueled by an influx of global service providers actively exploring the market to cater to the rising demand for data centres. According to a government spokesperson, Google, Microsoft and AWS have reportedly committed investments of 100 billion baht each (US$8.5B in total) to advance cutting-edge data centre capabilities and strengthen Thailand’s government led digital initiatives. Thailand is growing in its significance as a prominent ASEAN market as it continues to develop and evolve its digital ecosystem. The Thailand Board of Investment (BOI) has established a range of non-tax and tax incentives that promote the growth of the country’s data centre industry. For instance, there has been a relaxation of restrictions for foreign ownership and corporate income tax exemptions and reductions amongst others. As a result, Bangkok, which houses more than 90% of Thailand’s operational data centre capacity saw a 40% increase in live IT load since our last update.

KEY INDICATORS*

11 OPERATORS, 19 DATA CENTRES

51MW IN OPERATION

55% COLO VACANCY

118MW UC / PLANNED

* Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT. The 85% of the country’s operational data centre capacity is concentrated within Greater Manila. Telcos have limited competition and dominated the market. The largest data centre operator in the market is ePLDT, the IT services branch of the Philippine Long Distance Telephone Company (PLDT) and is 20.35% owned by Japanese-based operator NTT. Other operators in the market include STT GDC, YCO Cloud Centres, DITO Telecoms, and Converge ICT Solutions. Currently, the STT Fairview data centre is the largest in Manila with a capacity of 28MW IT Load. At the end of H2 2023, there are 8 data centres under construction cumulatively accounting for 72MW of data centre capacity. PLDT and STT GDC continue to expand their presence in the Philippines and account for ~70% of the under construction and planned pipeline. With six submarine cable landing stations in Manila and the efforts of both PLDT and the Philippines government to upgrade network infrastructure in the country, will bolster connectivity and reduce latency to regional and global locations in Asia Pacific, America and Europe and contribute to the growth of the data centre industry in the Philippines. Strengthening trade relations with China, South Korea, and other countries in South-East Asia, America and the European Union will further catalyse economic growth for the Philippines and drive demand for the market’s data centre industry.

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

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