October 2023 EMEA Data Centre Update

GRONINGEN / EEMSHAVEN

Colo Hyperscale Cloud Telco

EMEA POWERHOUSE MARKET OVERVIEW

MIDDENMEER

KEY INDICATORS*

31 OPERATORS, 77 DATA CENTRES

951MW IN OPERATION

130MW UC / 196MW PLANNED

7% VACANCY RATE

AMSTERDAM CBD

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

MARKET OVERVIEW

Amsterdam is the second largest market in Europe after London and expected to cross the 1GW operational capacity mark over the next 6 to 12 months. The market continues to witnesses demand from clients across BFSI, Telecom and Cloud services sectors, reducing the vacancy rate from 11% to 7% over the last 6 months. Construction activity has seen an uptick, with 130 MW of capacity currently under construction and 196 MW in planning stages. In Amsterdam, the CBD cluster remains the most preferred location by data centre operators, accounting for ~50% of the operational capacity and 80% of the under-construction capacity. The effective moratorium on data centre developments over 70MW and 10ha remains in place, however, effectively restricting the ambitions of the major investors in hyperscale. The moratorium applies to the whole of the Netherlands, except for the municipalities of Hollands Kroon and Het Hogeland. Establishing data centre infrastructure in Amsterdam is becoming challenging due to the lack of upgrades to key electricity substations. Nevertheless, factors such as deployment of 5G networks, increasing internet connected devices, cloud adoption, etc., continue to drive demand thereby attracting operators to deploy new data centres in this market. In April 2023, Microsoft gained authorization to build a new data centre in Hollands Kroon, underscoring the ongoing expansion of the region’s cloud data infrastructure. Later in June, Digital Realty announced acquisition of an 8.9 acres land parcel land in Schiphol, Amsterdam to support development of a 40MW data centre. The increasing investment in renewable energy and powering the data centre facilities with clean and green energy is likely continue as many operators are working towards reducing the power usage. Google has signed multiple long term Power Purchasing Agreements (PPA’s) in the last 6 months to power its data centres in Netherlands as it aims to be carbon free by 2030.

ECOSYSTEM DEVELOPMENTS • Microsoft has received a final environmental permit for the construction of its latest data centres in the market, AMS13 and AMS14. Earlier this year, Microsoft had received construction permits for its AMS1/AMS13 data centres in Hollands Kroon. The two 36MW structures will utilize a direct air and evaporation cooling system and attain a PUE of 1.18. • Principal Asset Management purchased a logistics facility that will be leased to Switch Data Centres and converted into a data centre. After conversion, the facility will feature a waste heat recycling to for use with local district heating and solar panels capable of generating over 1MW of capacity. A new substation is also scheduled to come online that will provide the building with 42MW of power. Switch is hoping to complete the repurpose by 2024 but could be as long as 2026. • Digital Realty acquired just under nine acres of land near its Schiphol campus in Amsterdam. The purchase will allow additional expansion that could support more than 40MW of total capacity. • Dutch data centre operator Serverius was acquired by Finnish CapMan Infra for an undisclosed amount. In total, Serverius operated 8MW across three sites in the Netherlands. • KnownHost has launched a new data centre in Amsterdam. The facility will be the companies first in Europe. • InMotion has expanded its array of hosting services at its Amsterdam data centre. The company now offers bare metal, VPS and WordPress hosting services. InMotion recently transitioned from a temporary data centre in Amsterdam to a nearby Digital Realty facility. • AMS-IX , Amsterdam Internet Exchange, changed consumer facing switch providers last year and as a result Equinix AM5 has reduced its power consumption by 85% while port capacity has increased. 15 other locations in Amsterdam are scheduled to receive the upgraded switches as well