October 2023 EMEA Data Centre Update

Colo Hyperscale Cloud Telco

ALCOBENDAS

EMEA ESTABLISHED MARKET OVERVIEW

TORRJAN DE ALDROZ

KEY INDICATORS*

114MW IN OPERATION

24 OPERATORS, 31 DATA CENTRES

41MW UC / 132MW PLANNED

17% VACANCY RATE

CENTRAL MADRID

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

MARKET OVERVIEW

While Madrid as a data centre market is smaller than FLAP markets, it is growing and maturing rapidly and, along with Milan, can be considered as one of the key markets of Europe. With the absorption tapering towards end of 2022, as per our last report, the first half of 2023 has seen a steady rate. With over 34MW getting absorbed in H1 2023, Madrid is set to see a boost in data centre supply. Currently, 41MW of capacity is actively under construction and 132MW is in planning stage. Although the vacancy has seen an increase from 12% in H2 2022 to 17% in H1 2022, data centre operators have continued to seek expansion in Madrid, which is driven by cloud hyperscale, as well as demand driven by the adoption of 5G, boom of AI and digital infrastructure in line with Spain’s 5-year plan, Spain Digital 2025. In April 2023, Data4 announced its 80MW, campus MAD02, to be in the north of Madrid, its Phase 1 to go live by 2025 and the rest by 2029. In June, Oracle has announced to launch its second cloud region under its Cloud Sovereign regions program. This is essentially designed to provide for the data privacy needs of private and public sector organizations based in the EU. IBM, partnering with Borealis Data Centre, has announced launch of new cloud region in Madrid. CyrusOne has also broken ground on a new 18MW data centre planned for delivery next year. Google, Oracle and AWS all have launched their cloud regions in Spain in 2022. Back in 2020, Microsoft announced its Azure region in Madrid, with Telefonica, and in January 2023, Microsoft has given the construction contract to Ferrovial Construcción.

ECOSYSTEM DEVELOPMENTS • IBM opened a new region in Madrid, consisting of three data centres spread across Alcobendas, Las Rozas, and Madrid City. The plans for the cloud region were announced in September 2021. IBM’s launch follows the opening of several other cloud regions that opened last year including Google, Oracle, and AWS. • Form8tion Data Centers , the data centre arm of Thor Equities , has begun construction on Madrid One: a 20MW initial phase that will reach 100MW 200,000 sqm at full buildout, located at the crux of numerous fiber routes. The project is a redevelopment of an old Coca Cola Factory. • Equinix has secured a 150MW PPA from three solar farms in East Madrid. The agreement will last for 10-years. • Nabiax is expanding its Alcalá campus. The first phase of the expansion is expected to be complete by year end and will add an incremental 7MW. Following expansions are anticipated to add 37MW of power and would bring the facilities total capacity to roughly 60MW. • DATA4 has broken ground on an additional 80MW campus across four buildings North of Madrid. The project is expected to cost €530M and will be the companies second data centre in the region. The first phase will launch in 2025 with 2029 targeted for full completion. • Mapfre , an insurance company headquartered in Spain, is looking to sell its Madrid data centre. The company has indicated it would like to continue hosting servers in the asset after the sale. The data centre opened in 2013 and has 8MW of power. • EXA Infrastructure has committed to new diverse and redundant terrestrial fibre routes that will connect Sines, Portugal to Madrid.