APAC Data Centre H2 2023 Update

H1 23 APAC EMERGING MARKETS

ASIA PACIFIC EMERGING MARKETS

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KEY INDICATORS*

16 OPERATORS, 23 DATA CENTRES

52MW IN OPERATION

18% COLO VACANCY

60MW UC / PLANNED

TODD HANRAHAN Head of Project & Development Services, New Zealand todd.hanrahan@cushwake.com

* Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT. Auckland takes up almost 70% of New Zealand’s operational data centre market. Auckland has historically seen small format data centres with operational capacity only averaging slightly over 2MW. However, the average size of the upcoming data centres increases to almost 13MW reflecting rising confidence levels of operators towards Auckland as a data centre location. DCI Data Centres, who completed their first data centre, AKL01, in New Zealand, earlier in 2023, have commenced construction on AKL02 in Albany, which will add 40MW to its portfolio in Auckland. Canberra Data Centres is also expected to add 6MW of capacity at its Hobsonville facility. Microsoft and Amazon have signed agreements with the government to collaborate on projects, regulatory changes and national cybersecurity priorities which will boost operations in the market. Since the announcements by AWS and Google on their plans to launch cloud regions in Auckland, other international data centre operators, developers and investors have started to consider the market in their regional expansion plans to capitalise on the high level of renewable energy generation (hydro, geothermal, wind and solar), and as a cheaper alternative to neighbouring Australia. However, the capital cost of purchasing land can be quite expensive, with suitable land options for data centre development being limited. While New Zealand is located in a high seismic area, there is a sophisticated level of expertise within the country around structural resilience that can advise international operators entering into the market.

TRANG BUI General Manager, Vietnam bui.trang@cushwake.com

KEY INDICATORS*

22MW IN OPERATION

9 OPERATORS, 13 DATA CENTRES

49% COLO VACANCY

21MW UC / PLANNED

* Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT. Vietnam remains as a new frontier for data centres in Asia Pacific. However, it is poised for steady expansion as its neighbouring ASEAN markets witness solid growth. In preparation, Vietnam’s digital economy is undergoing signification transformations driven by evolving regulations forced on by the impetus for greater digitalisation. Forward-thinking enterprises such as Apple, Intel, Canon, Samsung, LG, LEGO, Airbus, and other global organisations have begun working with partners based in Vietnam to establish digital transformation strategies as part of a holistic approach to global business. The Vietnamese government has also announced the National Data Centre Project that is planned around more securely storing government data as it moves towards greater digitisation in the public sector. Ho Chi Minh has deployed over half of the nation’s live capacity and almost 40% of Vietnam’s under construction and planned pipeline. While international operators such as NTT Global Data Centers, Telehouse and GIC-backed VNG Cloud have a presence in the market, the common approach for new players entering the market is to partner with local telcos such as FPT Telecom, Viettel Group, VNPT, and CMC Telecom. Currently, FPT Telecom, VNG Cloud, and VNPT, have facilities under construction or in planned stages of development, totaling 21MW of IT load and all expected to be operational in 2024.

JOHN LE Senior Manager, Leasing Agency – Industrial, Vietnam john.le@cushwake.com

* 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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