October 2023 EMEA Data Centre Update

Colo Hyperscale Cloud Telco

EMEA ESTABLISHED MARKET OVERVIEW

CENTRAL MILAN

KEY INDICATORS*

108MW IN OPERATION

19 OPERATORS, 30 DATA CENTRES

62MW UC / 29MW PLANNED

12% VACANCY RATE

WEST MILAN

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

MARKET OVERVIEW

Milan is a major economic hub in Italy and one of the most important business centres in Europe. The city's economy is driven by a diverse range of industries, including finance, fashion, design, technology, and tourism. Milan is home to the Italian Stock Exchange and some of the largest banks and financial institutions in the country. The city is also a leading centre for fashion and design, with many of the world's top luxury brands headquartered here. In recent years, Milan has emerged as a key technology hub in Europe, attracting a growing number of startups and multinational corporations In the last year, Milan has seen an increase in vacancy driven by a supply increase. Vacancy rates currently stand at 12%. Construction activity maintains a steady pace, with 62MW under construction and 29MW in planning phases. With key locations in Italy and Central European markets, Aruba Cloud is a key cloud player in Milan. Stock exchange company Euronext, whose long-time headquarters were in the United Kingdom, have recently completed its data centre migration project to the Aruba Global Cloud data centre IT3, 51 km northwest of Milan in Bergamo, Italy. In April, Aruba acquired two hydroelectric power plants in the region totaling up to 9.2MW spread across its seven hydroelectric plants in Italy. International operators and capital have continued to enter into the market. Last year, Compass Datacenters and Hines announced plans for a 48MW campus in Noviglio. Asterion Industrial partners purchased 98% of local colocation provider Irideos. STACK Infrastructure has recently expanded their Siziano campus, adding 10MW in the span of 12 months. Hyperscalers are also showing interest in the region. In June, Microsoft announced the forthcoming launch of its first cloud region in Italy, which would provide Italian organisations with scalable, accessible, and resilient cloud services.

SOUTH MILAN

ECOSYSTEM DEVELOPMENTS • Microsoft launched its first cloud region in Italy. The investment will be comprised of three data centres, all of which are in Lombardy. The data centres will support corporations utilizing Azure, Microsoft 365, Dynamics 365 or other offerings. • Google has opened its second cloud region in nearby Turin, adding to its existing region in Milan. • Vitali , a local real estate firm, is planning a data centre campus west of Milan in Arcene. The facility is expected to span more than 180,000 sqm. Construction is anticipated to start in 2024, however, Vitali has been facing pushback from neighboring municipalities over encroachment on agricultural land from the project. • The first portion of Sparkle’s BlueMed submarine cable became operational proving connectivity between Milan, Genoa, and Sicily. Once complete the project will link Italy, Greece, France, several Mediterranean countries and Jordan. The addition of a cable landing station will offer greater options for connectivity. • EXA Infrastructure was selected by FibreConnect SpA to deploy a fiber backbone connecting Milan to Rome. The connection is planned reach speeds of 10Tbps. • In September, the first portion of Sparkle’s BlueMed submarine cable became operational providing connectivity between Milan, Genoa, and Sicily. Once complete the project will link Italy, Greece, France, several other Mediterranean countries and Jordan. The BlueMed offers open cable landing stations allowing greater access to termination points. The BlueMed route provides a new entry point that has previously been unavailable, paving the way for future submarine cables.