October 2023 EMEA Data Centre Update

Colo Hyperscale Cloud Telco

EMEA POWERHOUSE MARKET OVERVIEW

HEMEL HEMPSTEAD

LONDON DOCKLANDS & CBD

HAYES

KEY INDICATORS*

996MW IN OPERATION

45 OPERATORS, 121 DATA CENTRES

SLOUGH

PARK ROYAL

118MW UC / 610MW PLANNED

9% 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

London is the largest data centre market in EMEA and continues to see a steady rise in supply. The under-construction capacity at the end of Q2 2023 stood at 118MW where as 610MW is in the planning stages. Considering the current under-construction pipeline, London is expected to become the first market in EMEA to surpass the 1GW of operational Data Centre capacity. While London has consistently witnessed addition of new capacity, demand has kept pace. Therefore, the vacancy has remained in single digits i.e., 9% at the end of Q2 2023. Owing to factors such as restrained import of gas & power, increased power consumption and delays in upgrading/adding substations, London faces challenges with regards the price of power and securing power capacity for expansion and new development of data centres. Despite power challenges, London continues to attract the interest of operators as well as end clients. While the market already has operational data centres of 40 operators, seven new operators have their data centres currently in the under-construction and planned stages in London. West London markets such as Hayes, Park Royal and Slough have the highest operational data centre capacity currently. The Slough cluster alone accounts for 32% (314MW) of operational capacity whereas 21% (204MW) is in the Hayes and Park Royal clusters combined. The West London locations also have the highest development pipeline of data centres, accounting for 65% (451MW) of the under-construction and planned pipeline cumulatively. The strain placed on the National Grid, especially to the West of London has created negative coverage in the media, which during H1 2023 sought to argue that data centres are taking power away from residential housing consumption and using high volumes of water. Power upgrades may not come online until 2028-2032, so some operators are looking elsewhere around the M25 beltway, which is shown clearly on the adjacent map) and looking to the East of London, as well as the West.

ECOSYSTEM DEVELOPMENTS • Digital Realty has sold its data centre in Watford to CapitaLand Ascendas REIT. The asset was occupied by five tenants making up the data centres 80% occupancy rate. It is estimated the facility had just over 12MW of power. The purchase gives CapitaLand its fifth data centre in the United Kingdom. • Equinix put forward plans for a five-storey 30MW+ LD14 data centre at the Slough Trading Estate. • Vantage Data Centers is planning a second facility, LHR2, to follow their first entry into London, LHR1. The 20MW project in Park Royal is planned to complete full buildout in 2025. • Global Technical Realty announced in June that it has fully leased its 40.5MW GB One data centre. The first phase of the project is scheduled to be completed in Spring 2024 with full build out anticipated in the first half of 2025. The facility will be comprised of three data centres with each providing 13.5MW of power and 5,373 sqm of white space. GTR began construction on the asset in January 2022. • Colt Technology Services has completed a new network. Routed along the Channel Tunnel, the dark fibre cable will link London and Paris. In 2021, Colt and Getlinked agreed to a 25-year exclusive concession contract to deploy and operate a new fibre network through the tunnel, where Colt claims roughly 80% of internet traffic between the UK and Europe now travels. Early this year, Colt began construction on a new 57-acre data centre in Hayes. • Global Switch received approvals for a 27,000 sqm facility adjacent to its existing data centre. • RETN has continued to grow its network as well. Utilizing Crosslake Fibre’s Cross Channel infrastructure, the company recently added a new low latency route that will connect London and Paris. • Telehouse is expanding its South facility in London’s Dockhands. The company is adding two additional floors of colocation space that will increase the assets power capacity to 7.7MW. The data centre first opened in 2022, the expansion is expected to be complete by mid 2024.