APAC Data Centre H2 2023 Update

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.