October 2023 EMEA Data Centre Update

Colo Hyperscale Cloud Telco

GAVLE

EMEA ESTABLISHED MARKET OVERVIEW

NORTH

KEY INDICATORS*

GREATER STOCKHOLM

19 OPERATORS, 35 DATA CENTRES

158MW IN OPERATION

12MW UC / 141MW PLANNED

16% VACANCY RATE

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

CENTRAL

MARKET OVERVIEW

Stockholm is a mature data centre market and has a diverse economy that is driven by multiple sectors, including information technology, finance, manufacturing, and healthcare. Stockholm is also a global leader in technological readiness and ICT usage, consistently ranking in the top three by the World Economic Forum. It serves as a crucial connectivity hub for northern Europe and provides an ideal strategic location for accessing both Northern European markets and the rapidly expanding internet economies in the Baltics. The leading location for data centres in Sweden is Stockholm, but there are many emerging dispersed locations such as Lulea, Falun, Malmo, and others which are locations with substantial power availability, rather than being connected to population and urban infrastructure. The growth of the data centre market in Stockholm has been supported by the establishment of Stockholm Data Parks. Anticipated factors that will fuel the market's growth include the rising need for energy efficient data centres, significant investments by colocation and managed service providers, and the expansion of hyperscale data centre facilities. Stockholm's appealing business climate, cost-effective energy prices, and access to renewable energy sources have positioned it as a highly-attractive destination for data centres. Stockholm has established a goal to eliminate the use of fossil fuels by 2040. To accomplish this objective, the city has made substantial investments in sustainable energy sources like wind and solar power. Swedish data centre operator Conapto has successfully obtained a SEK 400 million (equivalent to US$38.6 million or EUR 35.33 million) loan for the construction of a new data centre in the southern part of Stockholm. This facility will prioritize environmental sustainability, adhering to green standards, utilizing 100% renewable energy, and integrating with the district heating system. Upon becoming operational, the new data centre will offer a power capacity of 20MW. With a long and successful telecommunications heritage, Stockholm is the primary hub for connectivity and data centres in the country. It stands out as the most fibre-connected city in the Nordic region and handles the bulk of internet traffic and connectivity within Sweden. Many businesses are adopting colocation services and cloud as they transition away from operating their own data centres, while the government is progressing with advanced services and smart city projects. Additionally, Stockholm hosts a substantial data centre presence for international and multinational organizations, catering to both Nordic and broader European requirements.

ECOSYSTEM DEVELOPMENTS • EcoDataCenter put forward plans for a campus in Östersund. An initial phase will total 20MW planned for 2026. At full buildout, the campus will reach up to 150MW. Waste heat is planned to be reutilized to assist with food production. • EcoDataCenter also recently leased part of its high-performance computing (HPC) data centre in Falun to the University of York. The HPC capabilities of the facility will be utilized to study climate dynamics, as such data centres with renewable energy commitments was a key decision point for the university. • EcoDataCenter’s owner, Areim , recently closed a $472M fund to grow the sustainably-minded operator’s platform across Nordic markets.The company currently has five facilities in operation in Stockholm, Falun and Piteå in addition to its planned campus in Östersund. • atNorth has attracted French BNP Paribas to utilize the operators’ HPC facility in Kista. Up to 85% of the waste heat from the facility is redistributed toward the local district heating system. • Evroc raised nearly $14M in seed funding to develop sovereign hyperscale data centres across Europe. With EQT and NorrskenVC as key backers, the startup aims to announce plans for two facilities over the next two years. • RETN has finished deploying a new network to connect Stockholm and Helsinki. RETN claims project will boost resilience and performance for its customers. According to RETN, the fibre network is the shortest existing route between the two cities at 450km.