APAC Data Centre H2 2023 Update

ASIA PACIFIC POWERHOUSE MARKET

KEY INDICATORS*

INZAI

33 OPERATORS, 110 DATA CENTRES 1,389MW UC / PLANNED

1,028MW IN OPERATION 8% COLO VACANCY

CENTRAL TOKYO

* 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 As forecast in our H1 2023 update, Greater Tokyo has developed into a 1GW market with an additional 126MW of operational IT load added in the last 6 months, taking up. In H2 2023, Inzai saw an increase of 33MW and the rest of Tokyo, including prefectures such as Kanagawa and Chiba, the city of Oyama added another 75MW of operational IT load. Housing the largest cluster of data centres in the Asia Pacific region and taking up over 80% of Japan’s total operational capacity, the growth of data centres in Tokyo is attributed to increasing cloud adoption, rising levels of economic and technological development, and government efforts for a digital society and to digitalise industries. With challenges in securing powered sites in Central Tokyo and Inzai, developers are increasingly looking for available power in new submarkets that can satisfy their growth plans. The Japanese government has been attempting to push data centres from established hubs of Tokyo and Osaka through the Digital Garden City Initiatives and enlisting large cooperation with local governments. With the government support in developing land and necessary infrastructure could save up to one-third of construction costs, large regional center started to emerge led by hyper scalers seeking alternative sites outside the Greater Tokyo Area. Within the Greater Tokyo Area, already 96% of UC and Planned pipeline are also located outside the central Tokyo, as more investors seeking lower land cost and available power supply in outer area. There is a good mix of international and local players in the market such as @Tokyo who leads the Greater Tokyo market in terms of total operational IT load, followed by NTT, Equinix and KDDI. New players who entered the market include CEC, Canon IT Solutions, I-Net Cooperation and TIS INTEC Group.

ECOSYSTEM DEVELOPMENTS • AirTrunk commenced the construction of the third phase of AirTrunk TOK1, a massive data centre project in East Tokyo. With a capacity of over 300MW, the new facility will be purpose-built to cater to the needs of a major technology client. • Alation, Inc. announced the launch of its new data centre located in Tokyo. Customers can now process and store data locally to meet data residency requirements. This is the fifth Alation facility globally, adding to existing locations in the United States, Europe, Singapore, and Australia. • Amazon Web Services (AWS) is planning to invest over US$15.24B in expanding its nation-wide cloud computing infrastructure by 2027. As part of this investment, the company will seek to expand its data centre facilities in Tokyo and Osaka, with an expected annual expenditure of $5 billion over the next three years. • Equinix announced the opening of TY13x, its second Tokyo-based xScale data centre, providing 8MW in the first phase and will provide a total capacity of 36MW at full built • GLP has started on its first data centre project in Japan, a 31 MW campus in Western Tokyo. The first 10MW phase of the project is expected to deliver in Q1 2025. GLP’s larger plans for Japan include a pathway to over 600MW of IT capacity over four planned Tokyo campuses and one planned Osaka campus. • NTT Global Data Centers Japan (NTT GDCJ), and TEPCO Power Grid (TEPCO PG) have announced an agreement to create a new joint company. This venture will focus on developing and operating data centres in the Inzai-Shiroi area of Greater Tokyo.