October 2023 EMEA Data Centre Update

Colo Hyperscale Cloud Telco

EMEA POWERHOUSE MARKET OVERVIEW

SOSSENHEIM

KEY INDICATORS*

23 OPERATORS, 64 DATA CENTRES

620MW IN OPERATION

FRANKFURT AM MAIN

GALLUS

181MW UC / 841MW PLANNED

1% VACANCY RATE

HATTERSHEIM

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

MARKET OVERVIEW

Frankfurt continues to maintain its position as one of the top markets in Europe. There are 30 operators with operational data centres in Frankfurt currently, seven new operators are in process of setting up their first data centres. While the market continues to see new capacity getting added in each quarter from existing and new operators, demand has also kept pace. As a result, the vacancy rate has remained unchanged at 1% and expected to remain low in the short term. Frankfurt being a financial hub, witnesses significant demand from the banking & financial services industry. The Frankfurt market continues to witness rapid development of data centres and has 181MW of capacity under construction and 841MW capacity in the planned stages, at the end of Q2 2023. Frankfurt’s development pipeline is the second highest in EMEA and will ensure the market remains on the growth trajectory over the next 5 to 7 years. Frankfurt Am Main and Sossenheim are the largest clusters currently however, peripheral locations such as southern Frankfurt, Hanau in the east and Mainz in the west are of growing interest with several operators announcing their development plans in these locations. Data4 acquired a 20 hectare site from P3 Logistic Parks in Hanau with a plan to build its own data centre. Goodman announced purchase of a 4.5-hectare brownfield plot in Neu-Isenburg for development of a 100MW facility. Green Mountain formed a new joint venture with energy firm KMW to develop a 54MW campus in Mainz. Significantly, Frankfurt has been zoned for data centre development by the local government, which heavily restricts where data centres can be built. When combined with the realities of obtaining available power at scale, Frankfurt is becoming constrained in a similar manner to other members of the FLAP-D. Sensitivity towards sustainability is also increasing for the country to meet climate targets. In April, the German government introduced a set of legislative initiatives with the primary objective of substantially enhancing energy efficiency standards. While the government's plan to prohibit the use of fossil-based heating systems has garnered significant public interest, it is worth noting that certain proposed measures are put in place to intensify energy efficiency criteria for data centres operating in the country.

ECOSYSTEM DEVELOPMENTS • Equinix is implementing a heat recycling feature in its FR4, FR6, and FR8 data centres. The project will heat approximately 1,000 homes in the Frankfurt area. The program could spur others to follow suit, particularly as German legislative proposals mandating data centres repurpose wasted heat begin the swirl. • CyrusOne is planning two new data centres in Frankfurt. The first, FRA6, is a 72MW, 27,500 sqm, single building facility with four floors. CyrusOne acquired the FRA6 site, a 49,000 sqm office complex from Corex for $102M in January. The second data centre, FRA7, will be built in Frankfurt Westside at the former Griesheim Industrial Park. It will be comprised of two buildings offering a total power capacity of 81MW. FRA7 will also feature a heat recycling feature. Construction is expected to start in the back half of 2024 and will be complete in 2026. • Digital Realty intends to route 20MW of waste heat to Mainova’s district heating network from their Fechenheim data centre. • I Squared Capital placed $500M equity into a new data centre platform, nLighten, which will focus on edge locations. nLighten plans to open ten locations in multiple German markets during the second half of 2023. The initial portfolio for the platform was seeded with the acquisition from EXA Infrastructure (formerly GTT). • Green Mountain and KMW , a German power company, have formed a new join venture to develop a new data centre campus in Mainz, roughly 30km southwest of Frankfurt. The partnership will be evenly split between the two companies. The campus will be comprised of three buildings, 18,000 sqm of IT space, and a power capacity of 54MW. The development will adhere to strict sustainability standards. • DATA4 acquired a 49-acre site in Hanau to develop a 180MW campus for a total build cost of $1.1B. • Goodman Group aims to construct a 100MVA campus on a 12-acre site in Southern Frankfurt. The development of the brownfield site will result in a 45,000 sqm initial phase of a data centre. • NGN Fiber Network has deployed the shortest possible dark fibre route connecting Frankfurt and Berlin, more than 20km shorter than any other. NGN has been expanding its network aggressively with 1,500km of new routes added in 2022.