October 2023 EMEA Data Centre Update

H1 23 EMEA

EMERGING MARKETS

OTHER EMEA MARKETS

KEY INDICATORS*

EMEA DATA CENTRE TEAM Click on each name to email them

47MW IN OPERATION

10MW UC / 29MW PLANNED

19% VACANCY RATE

17 OPERATORS, 20 DATA CENTRES

Türkiye is an emerging as a burgeoning data centre market, serving as a vital link between Asia and Europe. The increasing demand for intelligent devices, data analytics, cloud integration, and the expansion of wireless networking technologies are among the key factors fueling investments in data centres in Istanbul. Istanbul stands out as the central data centre hub for Türkiye, currently hosting approximately 65% of the operational capacity. Furthermore, there are ongoing developments that will add 39MW of capacity, with expectations of rapid growth. This growth is largely attributed to the ICT sector, which is projected to thrive with the advent of 5G and next-generation technologies. In terms of sustainability, Istanbul is making substantial investments in renewable energy sources. A significant portion of the country's data centres already rely on renewable energy sources to power their operations. For instance, the Turkcell facility in Tekirdağ employs solar panels that span 12,900 square feet to generate energy for its operations. Türkiye has set ambitious environmental targets, aiming to reduce carbon emissions by 35% by the year 2030. Data centre operators are actively procuring renewable energy to support their facilities, aligning with sustainability objectives. Moreover, Istanbul is actively implementing a smart city initiative throughout the country. This initiative presents lucrative opportunities for foreign investors to contribute smart applications and related services, thereby generating a heightened demand for additional data centres in Türkiye.

ANDREW FRAY International Partner & Head of EMEA Team

ADAM COOKSON International Partner & Head of Land Transactions

IN-COUNTRY CONTACT – TURKIYE

TUGRA GONDEN Chairman, Türkiye tugra.gonden@cw-tr.com

KEY INDICATORS*

11 OPERATORS, 14 DATA CENTRES 6% VACANCY RATE The Lisbon data centre market currently comprises 14 operational data centres, with an additional four data centres in the development pipeline, presenting substantial investment opportunities. This upcoming expansion is poised to provide a capacity of 17MW. Furthermore, Portugal's strategic advantage is evident in its hosting of around 16 subsea cable systems, reinforcing its position as a significant peering market and telecommunications hub, thus bolstering the growth of the data centre industry. Key growth catalysts also include the saturation of FLAP-D (Frankfurt, London, Amsterdam, Paris, and Dublin) markets and the expanding scope for service operators, given the underexplored nature of the market. Portugal is already connected to other continents through two high-capacity subsea cables: the Equiano cable, owned by Google, which spans to South Africa via various African nations, and the EllaLink cable, linking Sines (south of Lisbon) to Brazil. Portugal is also making substantial investments in Sines to generate renewable energy and green hydrogen to power energy-intensive data centres and industrial facilities. Notably, U.S. investment fund Davidson Kempner and British firm Pioneer Point Partners have plans for a joint investment of up to 3.5 billion euros ($4.2 billion) in the Start Campus, Sines to meet the demand from global tech companies. 13MW IN OPERATION 6MW UC / 11MW PLANNED

IN-COUNTRY CONTACT - PORTUGAL

SERGIO NUNES Head of Data Centres Sergio.Nunes@cushwake.com