亚太数据中心市场更新-H2 2022

DATACENTRE

UPDATE

H22022

PRIMARYMARKETS:

Singapore,HongKong,Sydney,Seoul,Tokyo,Mumbai

GROWTHMARKETS:

Johor,Jakarta,Hyderabad,Bangkok,Manila,HoChiMinh

0

1

2

APACPRIMARYMARKET-RANK#1

KEYINDICATORS*

23OPERATORS,47DATACENTRES

170MWUC/PLANNED

876MWINOPERATION

2%VACANCYRATE

*Definition:KeyindicatorsarebasedonoperationalHyperscaleCloud,Colo,Edge&TelcodatacentrefacilitiesinthemarketandexcludesCaptive&ICT.

MARKETOVERVIEW

InJuly,postthemoratoriumthatwasinplaceinSingaporesince2019,theEconomicDevelopmentBoard(EDB)andInfocommMediaDevelopmentAuthority(IMDA)initiatedapilotDataCentre–CallforApplication(DC-CFA)exercisethatwillfacilitatethebuildingofnewDCcapacityandallowforthecalibratedandsustainablegrowthoftheindustryinSingaporeconsistentwiththeirclimatechangecommitments.Theapplicationdeadlinewasrecentlyextendedto5DecemberwithresultsexpectedtobeannouncedinQ12023.

Besidesmeetingthemin10MWandmax60MWofcriticalITload,proposalsarerequiredtoadheretospecificsustainabilityrequirementssuchaskeepingtoa1.3PUEorbetterat100%ITloadandachievingtheBCAIMDAGreenMarkforDataCentresPlatinumCertification.ItwillalsoneedtodetailhowthefacilitywillstrengthenSingapore’spositionasaregionaldatacentrehub,itsinternationalconnectivity,contributetotheirjobeconomyandaddressotherstrategicandeconomicoutcomes.

Successfulapplicantswillbesupportedwithpowerleasesfor30yearsbuttherewillbeatemporarylimitof10MWofpowerthatmaybedrawnfromthegriduntilend-2025.Land,waterandotherrequirementswillneedtobesoughtindependently.

Theprogramhasbeenwellreceivedbytheindustryandhaspromptedacompetitiveapplicationlandscapewithjointbidsandpartnershipsexpected.ThreepotentialsitesinLoyangownedbyJTC,thegovernmentagencyinchargeofSingapore’sindustrialprogress,havebeenmadeavailableaspotentiallocationsforapplicants.

Thereisnotmuchscopeleftfornewgreenfieldopportunitiescomingintothemarket,however,brownfieldopportunities,ifpowercanbesecured,maybeviablealternatives.TheimpactofthelimitedsupplyinSingaporeandtherecentmoratoriumhaveopenedopportunitiesinneighbouringJohorandBatammarketsinMalaysiaandIndonesia.

Colo

HyperscaleCloud

Telco

ECOSYSTEMDEVELOPMENTS

•AbuDhabiInvestmentAuthority(ADIA)andSingapore-basedSCCapitalPartnershaveestablishedadatacentreinvestmentprogrammewiththepotentialtoscaleuptoUS$2bnofequity.Throughasubsidiary,ADIAhasmandatedSCCapitalPartners(SCCP),aprivateequityrealestatefirmheadquarteredinSingapore,toinvestindatacentresacrosstheAsiaPacificregionwithaprimaryfocusonJapan,SouthKorea,Singapore,andAustralia.SCZeusDataCenters,SCCP’sdatacentreplatformlaunchedearlierthisyear,willmanagethenewdatacentreinvestmentprogrammewithADIA.

•GICbackedU.S.datacentrefirmEdgeCoreDigitalInfrastructurehashadamajoritystakeacquiredbyPartnersGrouptobuildoutEdgeCore’sexistingandfuturelargeTier1datacentresiteswiththeirUS$1.2bninvestment.

•GooglelauncheditsthirddatacentreinJurongWest,plannedandexecutedpriortothemoratorium.LocatedinLokYangWay,thenewfacilitywillhaveanestimated80MWofITloadcapacityandjoinstwootherself-buildfacilitiesthecloudgiantoperatesintheregion.

•Leaseweb,aDutch-basedprovider,openedaseconddatacentreinSingaporeinOctober.TheopeningispartofalargerexpansionthatincludesTokyoandSydney.

•STTelemediaGlobalDataCentresreachedanagreementforMacquarieAssetManagement,viaMacquarieEuropeanInfrastructureFund7,toacquireasignificantminoritystakeinVIRTUSDataCentres.

•InthewakeoftheiracquisitionofSuperloopinH12022,DigitalBridgeandColumbiaCapitalestablishedXenithInfrastructureGroup,afiberplatformthataimstoenableconnectivitytodatacentreproviders,carriersandenterprises.

•TelenorGroupestablishedanindependentAsianbusinessunitheadquarteredinSingapore.TelenorAsiasignedmergeragreementsinMalaysiaandThailandlastyear,expectedtobethelargestandsecond-largestmergersinAsia.

•12submarinecablesareexpectedtolandinSingaporeoverthenextthreeyearslinkingacrossAsiaPacific,EuropeandU.S.

H222

SGP

SINGAPORE

RECENTPROPERTYSALES

SALEPRICE(US$)

SIZE

SALEDATE

SELLER

BUYER

PROPERTY

May2022

May2022

(Confidential)

$8,186,755

CuscadenPeak

(Confidential)

SingaporePressHoldings

ESR-REIT

17,300m²

6,846m²

KeppelDC7

TechplasIndustrialBuilding

CONTACTS

Clickoneachnametoemailthem

CONSTRUCTION&PLANNEDUPDATES*

BRENDAONG

ExecutiveDirector,

DATACENTRE

OPERATOR

POWER

LOCATION

Loyang

BUILDINGAREA

48,000m²

STAGE-EST.RSF

U/C-H22022

Logistics&Industrial,Singapore

brenda.ong@

SGP1

Phase2:36MW

XIANYANGWONG

JurongLoyang

JurongLoyang

20,692m223,787m2

20MW

24MW

Phase2:2MWPhase3:3.15MW

U/C-H22022

HeadofResearch,Singapore

xianyang.wong@

U/CPlanned

Geylang

SIN1

14,446.70m²

TaiSeng

Jurong

KallangWay

TaiSeng

Thomson

Nexphase:6MW

PlannedU/C

U/C

U/C

U/C

SG4

SG5

Singapore7

23,214m²

31,893m²

44,279m2

9,032m²

13,886.30m²

Nextphase:6MW

40MW

RC1

Nextphase:2MW

YTLDataCenter

Nextphase:1MW

*ExcludesCaptive&ICTconstructionupdates.

APACPRIMARYMARKET-RANK#2

KEYINDICATORS*

16OPERATORS,39DATACENTRES417MWINOPERATION

453MWUC/PLANNED15%VACANCYRATE

*Definition:KeyindicatorsarebasedonoperationalHyperscaleCloud,Colo,Edge&Telcodatacentrefacilitiesinthemarketand

excludesCaptive&ICT.

Colo

HyperscaleCloud

Telco

MARKETOVERVIEW

HongKongisarobustdatacentremarketwhichoffersexcellentregionalandglobalconnectivity,

andavailabilityofallmajorcloudnetworks.Asaglobalfinancialandbusinesscapital,gatewayto

mainlandChinaandforitsgloballylowesttaxeddatacentrejurisdiction,therehasbeenstrong

demandfromdatacentreinvestorsandoperatorsthattriggeredahighvolumeoftransactionsin

2021,whichhavecontinuedthisyear.

ECOSYSTEMDEVELOPMENTS

•AirTrunkhassignedanewrenewableenergyagreementwithHongKongutilityCLPPowertooff-setMicrosoft’senergyuseinitsHKG1datacentre.ThesolutionwillbedirectlylinkedtoCLP’sWestNewTerritories(WENT)LandfillGasPowerGenerationUnits.

•ESRCayman,HongKongbasedlogisticsrealestatefirm,hascloseditsfirstdatacentredevelopmentfundwithoverUS$1bninequitycommitmentsforitsinauguralvehicle,DataCentreFund1(ESRDCFund1),dedicatedtothedevelopmentofitsdatacentrebusinessacrossAsiaPacific.ThefirmhadpreviouslyannounceditsintentiontoexpanditsHongKongfootprintduringthefirsthalfoftheyear.

•GDSsecuredamajorhyperscaletenantforitsHongKong1datacentreduringQ22022.

•Goodman,anAustralianintegratedcommercialandindustrialpropertygroup,openedadatacentrecomplexinHongKong’sNewTerritorieswithupto400MWinoverallpowercapacity,creatingoneofthecity’slargestdigitalinfrastructurefacilities.ThefirsttwofacilitieshavebeencompletedandfullyleasedtoEquinixandVantageDataCentres.

•PAG,theHongKongbasedglobalinvestmentfirmhasbeenreportedlyselectedasoneofthreefinalbiddersforGlobalSwitch,whooperate13datacentresacrossEuropeandAsiaPacificandisownedbyChinesesteelgiantJiangsuShagangGroup.TheyhavebeenseekingaUS$10-11bnsalesinceearly2021afterhavingfailedtolaunchGlobalSwitchontheHongKongstockmarket.

•Tencentandstate-ownedtelecommunicationscompanyChinaUnicom’shavereceivedregulatoryapprovalbytheStateAdministrationforMarketRegulationtosetupajoint-venturetoteamupondatacentresandedgecomputing.

•VantageDataCenters,aleadingglobalproviderofhyperscaledatacentrecampuses,announcedtheofficialopeningofanewofficeinHongKong.Theofficeservesastheregionalhubtohouseengineering,construction,salesandleadershipfunctionstosupportVantage’sexpandingbusinessacrosstheAPACregion.

However,thesupplypipelinewillbeconstrainedinthemediumtolongtermduetoshortageof

landandpowersupply,especiallyinKwaiChung,TsuenWan,Shatin,TsingYiandFanling,whereit

couldtakeover5yearstosecurepowerandaveragelandpricesfordatacentredevelopments

haveappreciated20-30%overthelastfewyears.LocationssuchasTuenMunandLantauIsland

providebetteropportunitiesinrelationtolandandpower,however,investorsandoperatorsare

reluctanttopioneernewdatacentreterritoriesinHongKongjustyet.

TheHongKonggovernmentisalsosupportingthegrowthofthedatacentremarketthroughmany

digitalisationinitiatives,suchastheDataCentreFacilitationUnit,whichprovidesassistance

regardingdatacentredevelopmentsinHongKong,includingliaisingwithothergovernment

departmentsonmatterssuchasstatutoryapprovalprocesses,compliancerequirementsor

procedures.

Chinahaslisteddatacentresasakeydecarbonisationtargetalongsidetraditionalheavy-emitting

industries,andhasorderedthecountry’sdatacentreoperatorsandtelecomsprovidersto

conservewaterandelectricity,tolocatefacilitiesinareaswithplentifulrenewableenergyandto

developlower-powerfacilitiesandequipment.Thegovernmenthasadjusteditspoliciestopush

thedatacentreindustrytodecarboniseinpursuitofthenationalgoalofcarbonneutralityby2060.

HKGH2GREATERCHINA22

CONSTRUCTION&PLANNEDUPDATES*

OPERATOR

LOCATION

STAGE-EST.RFS

Planned

BUILDINGSIZE

17,400m²

POWER

Nextphase:8MW

Phase1:10MW

Phase2:30MW

Phase3:1.12MW

DATACENTRE

HKG1

TsingYiHui

FoTanDC/

STTL613

ShaTin

KwaiChung

KwaiChung

TsuenWanShaTin

73,300m2

CONTACTS

Clickoneachnametoemailthem

JOHNSIU

ManagingDirector,HongKong

john.siu@

U/C-2025

Planned

Planned

Planned

Planned

Planned

6,800m²

CITICTelecom

Tower

21,185m²

7,100m²4,500m²

HKG11

Phase2:16.5MW

ROSANNATANG

Nextphase:0.75MW

Nextphase:10.62MW40MW19MW18MW21MW22MW

Phase1:50MW

Phase2:129.5MW

Phase2:5MW

20MW

Nextphase:3MW

Phase1:12MWPhases2-4:36MW

HK1HK4

ExecutiveDirector,HeadofBusinessDevelopmentServices,

Research,HongKong

rosanna.tang@

27,300m2

HK1:22,900m2HK2:21,200m2HK3:22,100m2HK4:25,800m2

112,600m2

12,000m2

18,800m2

22,000m²

HK1

KwaiChung

HK1

HK2

HK3

HK4

MEGAIDC

HK1,2&4:

KwaiChung

HK3:TsuenWan

TseungKwanO

Fanling

TsuenWan

TseungKwanOIndustrialEstate

TsuenWanWest

HK1:U/C-Q12023

HK2:U/C-Q22024

HK3&4:Planned

IDCPhase1:U/C–2023

IDCPhase2:Planned-2026

MEGAFanlingMEGAGateway

TGTHongKongDataCentre2

Fanling:U/C

Gateway:U/C-Q42022

Planned

65,100m2

HKG5

U/C-2023

Planned

*ExcludesCaptive&ICTconstructionupdates.

APACPRIMARYMARKET-RANK#3

KEYINDICATORS*

22OPERATORS,47DATACENTRES667MWINOPERATION

238MWUC/PLANNED17%VACANCYRATE

*Definition:KeyindicatorsarebasedonoperationalHyperscaleCloud,Colo,Edge&Telcodatacentrefacilitiesinthemarketand

excludesCaptive&ICT.

Colo

HyperscaleCloud

Telco

MARKETOVERVIEW

ECOSYSTEMDEVELOPMENTS

•TheAustralianDefenceDepartmenthassignedlargecontractswithCanberraDataCentres(CDC)fordatacentrehostingservices,pushingthecompany’svariousscopeofworkforthegovernmentbeyondAU$1bn.

•AirTrunk,hascompleteditsfifthandfinal40MWphaseofits130MWWesternSydneycampus,SYD1,inHuntinwood.AcrossitsthreefacilitiesinSydney,atfullbuild-out,theoperatorwillhavemorethan500MWofcapacityinthecity.

•DigitalOcean,hasannouncedanewdatacentre(SYD1)inSydney,expandingitsglobalpresenceandprovidingstrongercomputecapabilitiestosmallbusinesseswithlow-latencylinkstoNorthAmericaandAsia.

•EquinixbroughtthefirstphaseofitsfirstxScaledatacentre,SY9x,onlineinthemarket.TheassetwasfundedthroughaUS$575MjointventurewithPGIMRealEstate.Theinitialphasetotals14MWofcapacity,withasimilarsecondphasecurrentlyinpipeline.EquinixalsohasaSY10xprojectofthesamesizeinpipeline.

•DXNSolutions,isconsideringalternativestrategicoptionsforitsacquisitionsincePAGRealEstate’sFlowDigitalterminatedthesaleagreement.FlowisreportedlystillconsideringapartnershipwithDXNforitsinternationalmarketexpansion.

•NAB,oneofthefourlargestfinancialinstitutionsinAustralia,havesignedanewcontractwithAWSasitadoptscloudcomputingandpreparestomovemoreofitssoftwareanddatabasesintothepubliccloud.Theyarealsointheprocessofdecommissioningitsowndatacentres.

•NextDC,openedthefirstphaseofitslargestdatacentretodate,S3,aTierIVrated34,000sqmfacilityinArtarmon,whichisexpectedtoreachupto80MWwhenfullydeveloped.ItistheoperatorsthirddatacentreinSydneywithS1&S2–inMacquariePark,offeringacombined46MWacross14,500sqm.

•LeadingEdgeDataCentres(LEDC),launcheditsnewcentreinCoffsHarbour.LEDCplanstoopenninemorecentresinNSW.MarketsincludingVictoria,QueenslandandtheGoldCoastarealsobeingevaluatedbytheoperator.

TheSydneymarketcontinuestoseesubstantialgrowthinthecolocationandhyperscalespace.

Newdeliverieshavecontinuedtogrowatarapidpace.AsofQ42022,themarketmakesup57%

ofthetotaldatacentremarketinAustraliaandremainsastrongportionofthepipelinegoing

forward,encompassing38%ofthedevelopmentpipeline.Themarkethasseensomeofthelargest

deploymentsonthecontinent,withmultiple100MWorhigherprojectshavingrecentlydelivered,

underconstructionorinplanning.

Demandforstoragehasbeenbuoyedbycontinuingcloudmigrationanddigitizationinitiativesby

bothpublicandprivateentities.TheDigitalTransformationAgency(DTA)recentlyre-signeda

whole-of-governmentdealwithAWStotallingAU$174Mforthreeyears,enablingfederal,stateand

territorialagenciesaswellaspublicuniversitiestoutilizetheservice.

Thetotalamountofcapacityunderconstructionhasgrownto160MWwithsizableprojectsfrom

AirTrunk,NextDCandMacquarieallgoingunderconstructionrecently.Activityinthemarkethas

shiftedWestasdevelopersseekmoreplentifulland,powerandavailableinfrastructure.The

averagesizeofoperationalfacilitiesinGreaterWesternSydneyis>26MWcomparedtoabout

13MWinNorthShore.Theaveragesizefurtherincreasestoabout42MWforfacilitiesunder

construction,highlightingtheclusterasthemostpreferredforlargescaledevelopments.

TheOman-AustraliaCable(OAC)underseacablewascompletedinOctober2022.Thiscablewill

furtherenhanceAustralia’ssignificanceasthehubbetweenUSandEMEA.Sydneyalsobenefits

fromthiscableasSydneyisconnectedtoPerthviatheIndigoCentralunderseacable,thereby

improvingconnectivitywithEMEA.

Inothermajorevents,STACKInfrastructureannouncedapartnershipwithHickory,aleading

Australiancommercialrealestatedevelopertocreateanationaldatacentreplatform.STACKis

alreadyinthemidstofbuildinga72MWcampusinTruganinatotheWestofMelbourne,with

additionalprojectsplannedinCanberraandPerth.

RECENTPROPERTYSALES

SYDH2AUSTRALIA22

PROPERTY

549HarrisStreet

SolarisPaper

SIZE

SALEDATE

July2022

Mar2022

SELLER

FortiusFunds

GIC

BUYER

OptusFixedInfrastructure

Blackstone

SALEPRICE(US$)

$38,300,000

$51,900,000

4,900m²

18,654m²

CONTACTS

Clickoneachnametoemailthem

CONSTRUCTION&PLANNEDUPDATES*

ALEXMOFFATT

OPERATOR

DATACENTRE

SYD2

SYD3

SYD56

SY9x

SYD10x

WesternSydneyDataCentre

IC3SuperWest

LOCATION

LaneCove

Huntingwood

SmeatonGrange

Rosehill

Pemulway

MacquariePark

KempsCreek

Artarmon

MacquariePark

POWER

Phase2:30MW35MW

STAGE-RFS

Planned

U/C

Planned

Planned

Planned

Planned

U/C-H22023

U/C

U/C

U/C–Q42022

BUILDINGSIZE

33,000m²

121,645m²

7361m²

121,645m2

20,100m²

34,000m²

Director,Logistics&Industrial,Australia

alex.moffatt@

Phase2:5.69MW

SYD9xPhase2:14MW

SYD10xPhase1:28MW

30,000m2

Nextphase:72MW

32MW

144,000m²

SYD05-06-07

Phase1:48MW

SydneyS3

Athena

30,000m²

16,215m2

Phase2:20MW

25MW

*ExcludesCaptive&ICTconstructionupdates.25MW

APACPRIMARYMARKET-RANK#4

(SEOUL,GYEONGGI,INCHEON)

KEYINDICATORS*

14OPERATORS,32DATACENTRES330MWINOPERATION

592MWUC/PLANNED4%VACANCYRATE

*Definition:KeyindicatorsarebasedonoperationalHyperscaleCloud,Colo,Edge&Telcodatacentrefacilitiesinthemarketand

excludesCaptive&ICT.

Colo

HyperscaleCloud

Telco

MARKETOVERVIEW

Previously,overlookedincomparisontootherprimaryTier1datacentremarketsacrossAsia

Pacific,theSouthKorea(Seoul)marketisnowgaininginternationalentrantsintheformofmajor

US-baseddatacentreREITs,whichhavedrivengrowthinthemarketsince2021.Demandisalso

veryhighfromtheglobalcloudserviceproviderswhosedeploymentsarecurrentlysolelythrough

colocation.

ECOSYSTEMDEVELOPMENTS

•EmpyrionDC,thedatacentrearmofSingapore’snextgeninfrastructurefundmanager,SerayaPartners,hasannounceditisdevelopinga40MWgreendatacentreinGangnam.Theprojectwillutilisehigh-efficiencyBuildingIntegratedPhotovoltaicPanels(BIPV)onthefacadeofthe10-storeyproject.Currentlyunderconstruction,phase1isplannedforready-to-servicestatusin2024.

•KTCloud,anewlyformedbusinessunitofKorea’stelecomsfirmKTCorp,hasbegunconstructionona26MWdatacentre,GasanIDC,whichwillbeajointprojectinvolvingDLConstruction,KTandKTCloud.Thefacilitywillhave10storiesaboveand5storiesbelowgroundandisscheduledtohavephase1completedby2025.

•SKGrouphastakenfullresponsibilityoveralithium-ionbatteryfireattheirSKC&CDataCenterinBundangthatcausedmassivedisruptionstotheoperationsofKakao,amajorKoreaninternetcompanythatoperatesKakaoTalk,amessengerappserviceusedby90%ofthenation’spopulation.Themessengerappandotherservicesincludingbanking,paymentandtravelappsweredisabledinthe11+hourblackout.TheincidenthassparkeddisputesovermonopolyregulationsofonlineplatformsanddigitalinfrastructureinKoreaandhasraisedcriticismoverKakao’sdependenceonSKC&C’sdatacentre.KakaoisbuildinganindependentdatacentreinAnsan,Gyeonggithatshouldpreventtherecurrenceofsimilardisruptions.

•STACKInfrastructure,U.S.-baseddatacentredeveloper,andESRCayman,aHongKong-basedlogisticsrealestatefirm,haveteameduptojointlydevelopa48MWdatacentreinIncheonwithplansforcompletionaimedatQ42024.PowerfromKEPCOhasbeensecuredforthedevelopment.

•STTannouncedplansforaseconddatacentreinSeoultobelocatedintheGasan-dongsubmarket.PartneringwithSamsungSRAAssetManagementandaglobalinstitutionalinvestor,STTisplanningfora30MWcapacityfacilityfordeliveryin2025.

Inadditiontoexistingoperators,globaldataoperators,financialinvestors,anddomestic

constructioncompanieswillflowin,whichisexpectedtochangethebusinessstructurecentredon

existingtelecommunicationcompaniessuchasKT,LGU+andSKBroadband.Thelocalmarket

dominanceoftelcoshashistoricallyposedissueswithcarrierneutrality,butthismaypotentiallybe

resolvedbytheentryofmultinationalssuchasEquinix,DigitalRealty,DigitalEdgeandStack

Infrastructurewhohaveannouncedsignificantlysizedprojectsthatwillgolivefrom2024to2025

onwards.However,localcloudservicessuchasNaver,KakaoandNHN,andfinancialinstitutions

areconstructingself-buildsfortheirownuse,whichwillreducetheirshareofdemandinthe

colocationmarket.

LandnearavailablepowerisincreasinglyscarceacrossthecentralSeoulCBDarea,withmulti-level

buildsrequiredduetosmallerparcelsizesandcost.Duetopowershortages,KEPCOwillnot

reservepowerforfuturephasesandoperatorswillhavetopayaminimumfeefortheentire

amountofcontractedsupplyregardlessofwhetherthedatacentrewillbedevelopedinphasesor

not.LandcostsinSeongnamandGangnamcanbeuptothreetimeshigherthanlandpricesin

GyeonggiandIncheon,whichisincreasinglybecominglocationsofinterestduetoland/parcel

availabilityandpowersupply.

LocationsnorthoftheHanRiversuchasPaju,areconsideredattractiveduetomorecost-effective

landprices,landavailabilityandpowerconnections,however,internationalinvestorshaveshown

anapprehensionduetocloserproximitytheDMZandhavefavouredtheIncheonareatocapture

hyperscaledemand.

SELH2SOUTHKOREA22

RECENTSITE&PROPERTYSALES

SALEPRICE(US$)

$46,526,271

$61,882,608

(Confidential)

SIZE

1acre

2acres

23,146m²

SELLER

Daelim

SeilSteelCoLtd

IMMInvestmentGroup

SALEDATE

April2022

January2022

April2022

BUYER

Gasan

KORAMCO

GawCapital

SITE/PROPERTY

FmrKyungDongNavienR&DBuilding

SeilSteelIndustrialBuilding

CONTACTS

Dreammark1

Clickoneachnametoemailthem

JOHNPRITCHARD

HeadofTenantAdvisoryGroup,

Korea

CONSTRUCTIONUPDATES*

OPERATORDATACENTRE

john.pritchard@

LOCATION

AnyangYoungdeungpo

Gimpo

Gangnam

Hyangdong

Geumcheon

Jukjeon

Anyang

Bundang

BUILDINGSIZE

25,000m2

25,000m2

90,115m2

40,000m2

13,000m2

36,518m2

99,070m2

40,450m2

7,100m2

11,570m²

POWER

26MW

YDCPhase1:13MW

Phase2:13MW

STAGE-EST.RFS

JINWOOJUNG

PyeongchonDataCentreYoungdeungpoDataCentre

U/C–2024

YDSPhase1:U/C–2025

U/C–2023

U/C-2024

U/C–2024

U/C–2025

U/C–Q22024

U/C–Q32023

U/C

HeadofResearch,

Korea

jinwoo.jung@

Phase1:10.6MW

DigitalSeoul2(ICN11)

GangnamIDC

SL2x

GasanIwillDataCentre

PacificSunnyDataCentre

Pyeongchon2

BundangCenter

Phase1:10MW

SL2xPhase1:12MW

Phase1:13MW

Phase1:16MW

Phase1:12MW

Phase2:6MW

*ExcludesCaptive&ICTconstructionupdates.

APACPRIMARYMARKET-RANK#5

KEYINDICATORS*

25OPERATORS,93DATACENTRES865MWINOPERATION

1,105MWUC/PLANNED12%VACANCYRATE

*Definition:KeyindicatorsarebasedonoperationalHyperscaleCloud,Colo,Edge&Telcodatacentrefacilitiesinthemarketand

excludesCaptive&ICT.

Colo

HyperscaleCloud

Telco

MARKETOVERVIEW

ECOSYSTEMDEVELOPMENTS

•AirTrunkhasbegunconstructionofits110+MWhyperscalefacilityinWestTokyoaftersecuringagreenloaninJapanunderitsGreenFinancingFrameworktofundthedevelopment.Itwillbetheoperator’sseconddatacentreinthecityafterTOK1openedlatelastyearinInzaiwithaninitialcapacityof60MWthatisscalableto300MWacrosssevenbuildings.

•BBIX,aninternetexchangeprovider,haspartneredwithNECandaddpointsofpresenceatNEC’sInzaiandKanagawadatacentresaspartofitsOpenConnectivityeXchangeplatform(OCX).BBIXisasubsidiaryofSoftBank.

•Equinix,announcedits15thInternationalBusinessExchangeTM(IBX)datacentreinTokyo,TY15,withaninitialinvestmentof$115million.ItwillbestrategicallylocatedadjacenttotheexistingnetworkandclouddenseIBXcampusinTokyoandduetoopeninH12024.

•Google,willopenitsfirstdatacentreinJapaninInzaiby2023.GooglealreadyhascloudregionsinTokyoandOsaka,butthesearehostedincolocationfacilitiesrunbypartnerslikeEquinix.

•NEChasmadepublicplanstodevelopfurtherphasesofitsKanagawaandKobedatacentres.Theplannedphase2forthefirm’sKanagawadatacentreinTokyoisscheduledfor2H23.Bothphaseswillbepoweredby100%renewableenergy.

•NTTheldasuccessfultriedofatorso-on-wheelsrobotinitsShinagawaDataCentre.NTTplanstoexpandtherolloutofsuchrobotsto15furtherfacilitiesthroughoutJapan.

•StarlinkwentliveinJapaninOctober2022,thefirstEastAsiancountrytoreceiveliveservice.StarlinkhasenteredintoapartnershipwithKDDItodeliverhigh-speed,lowlatencybroadbandinternetto1,200remotemobiletowers.

GrowthintheTokyomarkethascontinuedthroughtheendofthe2022,withseveralmajornames

inthedatacentrespacemakingsubstantialannouncements.Followingentrancesfrommajor

investmentheavyweightslikeESRandGawCapitalearlierintheyear,AirTrunkandGoogle

reachedmajormilestonesforprojectsinthesecondhalfoftheyear.Hyperscalermarketsharehas

alsobeenincreasingwithself-builds,particularlybytheglobaltopthree,AWS,followedby

MicrosoftandGoogle.

Currently,thetotalcapacityunderconstructionisestimatedtobe221MW,withcontinued

competitionforsitesinbothInzaiandinTokyoitself.Developmentsaredrivenmorebypower

availabilitythanpreferenceforlocationduetopowershortagesincentralTokyo,albeitlessso

aroundsurroundingclusters.Withlandavailabilitybecomingtighterandduetothegovernment’s

attemptstopushdatacentresawayfrommoresaturatedhubs,entrantsintothemarketare

seekingmorecreativemeansofevaluatingsitesinoutlyingsubmarketsaroundTokyo(suchas

Saitama)aswellassecondaryJapanesemarketssuchasOsaka.

Tokyoremainsunderservedintermsofdatacentrestockpercapitarelativetootherglobalpeer

cities,equivalenttolessthan5%ofthatinSingapore.Thissupportsrobustdemandaheadfrom

majorcloudserviceoperators,drivenbythemarket’sincreasingcl