APAC Data Centre Update: H2 2024

APAC SECONDARY MARKETS

H2 24

ASIA PACIFIC SECONDARY MARKETS

MANILA KEY INDICATORS*

CONTACTS

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

13 / 21 Operators / Data Centres

52MW In Operation

46MW / 96MW UC / Planned

34% Colo Vacancy

The Philippine government remains committed to strengthening its digital infrastructure and ensuring data sovereignty. As part of this effort, the Department of Information and Communications Technology (DICT) is actively developing data centres to support the National Government Portal and the e-Government System Development Program, aimed at enhancing the country’s digital capabilities. Significant investments have been allocated to strategic initiatives such as the National Broadband Plan (NBP) and the National Government Data Center Infrastructure (NGDCI) Program, designed to create a conducive business environment for data centre operators and investors. Despite the current operational data centre capacity of only 52MW, Manila has a confirmed development pipeline of 142MW, indicating growing confidence among investors and colocation providers actively assessing the market. In July 2024, Equinix announced its acquisition of three carrier-neutral data centres from Total Information Management, marking its entry into Manila. Additionally, ePLDT-Vitro has expressed interest in constructing a 100MW AI-ready data centre to support the demand for AI and high-performance computing (HPC) applications. The hyperscale CSP segment has also seen increased activity with Hauwei entering the market and launching a colocation hosted availability zone offering over 100 cloud services. The increasing demand from hyperscale CSPs, alongside steady requirements from the banking, financial services, and insurance (BFSI) sector and government agencies, has driven a decline in the data centre vacancy rate from 55% in December 2023 to 34% in December 2024. With improving market indicators and sustained government support, Manila is poised to witness a surge in data centre investments over the next few years, positioning it as an emerging data centre hub in Southeast Asia.

HO CHI MINH CITY

KEY INDICATORS*

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

9 / 13 Operators / Data Centres

25MW In operation

9MW / 61MW UC / Planned

54% Colo Vacancy

STEPHEN HIGGINS Head of Capital Markets, Vietnam stephen.higgins@cushwake.com

Until recently, Vietnam’s data centre market was dominated by local telecom companies. However, with the relaxation of ownership restrictions for data centre operators and various government initiatives, several global players have expressed interest in entering the market. Cloud service providers (CSPs), including Huawei Cloud and Alibaba, are also evaluating opportunities to establish cloud services in Vietnam. Among colocation operators, NTT, Gaw Capital, and Worldwide are planning to enter HCMC with their first data centres, while STT has announced plans to develop a 60MW facility. Several local operators, such as Saigontel, Viettel, and Vingroup, have already allocated land banks in HCMC for data centre development. Earlier this year, FPT Corporation announced a US$200M investment to build an AI factory, leveraging Nvidia’s AI Enterprise software and H100 Tensor Core GPUs. HCMC has emerged as the preferred location for data centre operators in Vietnam, with 75% of the total development pipeline—both under construction and planned—concentrated in the city. Despite these developments, Vietnam’s data centre market is still in its early stages, with the lowest population-to-MW ratio in the Asia Pacific region (1.83 million people per MW). However, with a population exceeding 100 million and an average GDP growth rate of 6.25%, the market presents significant growth potential in the coming years. To support long-term growth, the Vietnamese government must continue improving its digital infrastructure, including terrestrial and submarine cable connectivity, ensuring reliable and uninterrupted power supply, and fostering a policy framework conducive to data centre expansion.

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW