October 2023 EMEA Data Centre Update

Colo Hyperscale Cloud Telco

EMEA POWERHOUSE MARKET OVERVIEW

AUBERVILLERS

NANTERRE

KEY INDICATORS*

33 OPERATORS, 77 DATA CENTRES

455MW IN OPERATION

VELIZY

136MW UC / 493MW PLANNED

5.3% VACANCY RATE

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

MARKET OVERVIEW

Paris is a highly mature data centre market in EMEA, having presence of global operators such as Equinix, Digital Realty, Colt, Telehouse KDDI for more than 25 years. Paris has built a significant development pipeline of 629MW of which of 136MW is under construction and 493MW is in planning stages. The major contributors to the upcoming supply include Data4, CloudHQ and ColtDCS that cumulatively account for about 60% of the current development pipeline. Demand from local French corporates from key industries such as Insurance, Pharmaceuticals, Energy, Digital Media and Cloud contribute towards keeping the vacancy rates compressed. Therefore, at the end of H1 2023, Paris recorded one of the lowest vacancy rates in the region of just 5.3%. Investors were actively seeking opportunities in the Paris market during the H1 of 2023. In April, AXA IM announced sale of its stake in Data4 to Brookfield Infrastructure. Later in June, nLighten acquired Euclyde Data Centres which operates six carrier-neutral data centres across France. Paris has set a target of achieving carbon neutrality by 2050, and substantial measures have been undertaken to advance this objective. While France’s energy strategy is substantially underpinned by nuclear power, Paris has directed substantial investments towards solar and wind energy initiatives, alongside augmenting the adoption of hydroelectric and geothermal power sources. Concurrently, significant investments have been channeled into fiber infrastructure development, with a primary focus on enhancing high-speed internet accessibility for both its populace and commercial entities. These multifaceted endeavors are not only pivotal for the data centre sector, but also align with Paris's broader economic development and technological ambitions, which also play into Paris being a showcase city for the 2024 Olympics.

SOUTH PARIS

ECOSYSTEM DEVELOPMENTS • CyrusOne has been permitted to expand its data centre in Versailles following successfully defeating a legal challenge to the project. The expansion is anticipated to add 83MW and 15,000 sqm of white space to the facility. It is suspected that the site has been fully leased by a hyperscaler, potentially AWS, however this has not been confirmed. • OVH Cloud has joined other cloud platforms in offering AI instances to its clients. This follows the company’s recent acquisition of a Quandela quantum computer for internal research and development. • Icade has signed a prelease with Equinix for approximately 7,500 sqm to its data centre in Seine-Saint-Denis. • DATA4 is planning a new campus in Nozay, France, roughly 330km southwest of Paris. DATA4 acquired the site from Nokia in April and is expected to build 8 buildings totalling 32,000 sqm and 120MW of power. DATA4 is targeting 2030 to reach full build out and is investing €1B to construct the asset. • Telehouse opened an 18MW second phase to its Magny data centre campus. The delivery totals 12,000 sqm over five data halls. • nLighten , I Squared Capital’s edge data centre platform, has been an acquisition spree and its latest pickup was Euclyde, an operator of six total French facilities including a Parisian data centre in Ile-de-France. • RETN has invested in a new 550km fibre network that will provide a low latency connection between London and Paris. • Colt Technology Services has completed the routing of a new dark fibre cable that will link London and Paris. The new network will provide companies with quicker, more reliable data connectivity while helping meet the growing demand for cloud computing across the countries. • Orange has gone live with AMITIE, a transatlantic sub-cable serving Aqua Comms, Meta, Microsoft and Vodafone.