2023年全球数据中心市场比较2023 Global Data Center Market Comparison-英

2023

GLOBAL

DATACENTERMARKET

COMPARISON

APublicationofCushman&Wakefield’s

DataCenterAdvisoryGroup

USHMAN&

AKEFIELD

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globalregionhighlightsfromtheAmericas,APACandEMEAonourreport

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FEATURESANDREGIONALHIGHLIGHTS

2/CUSHMAN&WAKEFIELD

INTRODUCTION

Therushofpost-pandemicactivityinthedatacenterspaceseenthroughout2021continuedin2022,despiteheadwindsintheoveralleconomyandresourcechallengesinsomeof

thelargestmarketsworldwide.Hyperscaletenantscontinuedtheirrelentlessexpansionacrossregions,withspecific

interesttowardsecondaryandemergingmarkets.Colocationprovidersanddevelopershavefollowedsuit,drivenbyhigheravailabilityandlowerpricesforbothpowerandland.

Theeconomictumultofinflation,combinedwithrising

interestratesandcontractioninthetechsectorhasaffectedtheentiredatacenterindustry.Duringthefirsthalfofthe

year,thespikeinenergypriceshadanoticeableimpacton

thebalancesheetsofoperationaldatacenters,whilethe

availabilityofpowerandcomponentshadanslowingaffectonsomepipelineprojects.Insomemarkets,utilitycompaniesincreasedelectricitypricesinresponsetoenergyavailability,andasaresultofsupplychainissuesandtheinstability

broughtaboutbytheRussia-Ukrainewar.Sincethen,energypriceshaveleveledduetoacombinationofsupplychain

improvementsandgovernmentaction.Currently,inoursetofglobalmarkets,electricitypricesareamedianof16%higherthantheywereinQ42021,thoughwithsignificantvariationacrossmarkets.

Asforecastedintheprevious2022GlobalDataCenter

MarketComparison,largebuildsfromhyperscalecompanieshavecontinuedrapidlythroughoutestablishedglobal

markets.Hyperscalersarealsosomeofthefirstmovers

intoemergingmarkets,takingadvantageoftheirability

toexecuteverticallyintegratedself-buildsaswellaskey

partnershipswithlocalgovernmentsandtelecomcompanies.

Thisyear,hyperscalersmademajorannouncementsacross

SoutheastAsia,Australia,SouthAsia,Sub-SaharanAfrica

andLatinAmerica.Whiletherehavebeenafewcasesof

projectsbeingpausedorcancelled,fearsofacomplete

haltofexpansionplansinthewakeofworldwideeconomic

stresshavebeenlargelyunfounded.Secondarymarketsare

anticipatedtocontinuetheirgrowthinimportanceascertain

primarymarketshaverunintotorunintoconstrictions,with

powerusageandsustainabilityscrutinizedmorecarefully.

Establishedmarketshavefacedgrowingheadwindsdue

togovernmentinterventionandconstraintsonavailable

powerandland.NorthernVirginia,thelargestdatacenter

marketintheworld,encounteredanunprecedentedmulti-

yearpauseforfuturedevelopmentinkeysubmarkets,as

utilitycompaniesattempttoaddressamassivedevelopment

pipeline.Inthiscase,thepopularityofanestablishedmarket

eventuallyexceededitscurrentinfrastructurecapabilities.

Combinedwithhighcompetitionforavailableparcelsand

record-lowvacancies,operatorshaveincreasinglylooked

inperipheralsubmarketsacrossVirginiaandMarylandand

refocusedeffortsonothermarketsacrosstheUnitedStates.

Elsewhere,therewassignificantprogressformarketsthat

haverecentlyfacedchallenges.InSingapore,thegovernment

Hyperscaletenantscontinuedtheirrelentlessexpansionacrossregions,withspecificinterest

towardsecondaryandemergingmarkets.

4/CUSHMAN&WAKEFIELD

liftedamoratoriumondatacenterdevelopment,announcingnewprotocolstoensuresustainabledevelopmentthatthe

market’senergygridcanaccommodate.Operatorscontinuetoworkwiththelocalgovernmentsofthesemarketsand

otherslikeFrankfurt,DublinandAmsterdam,wherethere

hasbeenincreasingtensionabouttheenergydemandsandsustainabilityconcernsfromlocalgovernments.Inaddition,severalnewcoolingtechnologiesandnoveldatacenter

designs—suchasfloatingoraquaticfacilities—arecurrentlybeingtestedaroundtheworld.

The2023GlobalDataCenterMarketComparisonreviewsallfactorsoutlinedinthepreviouseditionofthisreport,with

furthercommentaryonaregion-by-regionbasis.Aswith

previouseditions,weassessdatacentermarketsacross

theglobe,within13differentcategories,todeterminethe

topoverallmarketsalongwiththetopperformersineach

category.Withthisfourtheditionofthereport,wehopeto

providemembersofthedatacentercommunitywithabetterunderstandingofhowtheindustryisrapidlychangingand

expandingacrosstheglobe.

32

ResearchSources

Data

Centers

1,600+/

63

Global

Markets

METHODOLOGY

The2023GlobalDataCenterMarketComparisonreviewsthesamefactorsoutlinedintheprevioustwoeditions.Wescoredeachdatacenteracross13weightedcategoriesenablingustoassigneachmetropolitanareawithanoverallmarketscore.

MID-WEIGHT

LOW-WEIGHT

HIGH-WEIGHT

FiberConnectivity

MarketSize

CloudAvailability

Incentives

Taxes

PoliticalStability

Vacancy

Development

Pipeline

Sustainability

SmartCities

PowerCost

LandPrice

EnvironmentalRisk

Thisyear’seditionincludessomechangesandupdates.Thegoalofthissystemistomirrorhowdatacentermarketstrulyfunctionandtoidentifywhatfactorsdatacenterinvestors,

owners,operatorsandoccupantsvalue.Eightnewmarkets

havebeenincludedinthiseditionofourreportwithlocationsinSouthAsia,SoutheastAsia,SouthAmerica,NorthAmericaandtheMediterranean.

CUSHMAN&WAKEFIELD/5

Forthefirsttime,wereceivedatieforfirstplace.NorthernVirginia,whichhadreceivedthetopspotinthethree

previousversionsofourreport,nowsharesthehighest

rankwiththePortlandmarket.Whileremainingthelargestmarketatover2.5gigawatts(GW)ofcapacityandvacancyatbelow1%,NorthernVirginiastillsawseveralchallenges

thisyear.Aspreviouslymentioned,datacenterdevelopmentinLoudounCountyhasbeenpausedthrough2025or

2026duetolimitationsontheabilityofthelocalutility

providertodistributesufficientpower.This,combinedwithrocketingpricesforprimeland,hasdrivenoperatorstoseekopportunitiesinsurroundingmarkets,includingGainesville,Bristol,Culpeper,ManassasandevenasfarasRichmond.

Portlandrocketedfrom10thplacetosharingthetopoftheoverallstandingthisyear.ThisisduetotherapidexpansionofhyperscaleactivityintheHillsborosubmarket,aswell

asrelativelyfavorablepricing,sustainabilityoptions,low

environmentalriskandmoreavailableland.Pressreports

indicateamajornewbuildbyQTSisbeingplannedon

behalfofMeta,withtheprospectivecampusreportedas

requiring250megawatts(MW)ofpoweratfullbuildout.

ThecampuswouldbepoweredentirelybyrenewableenergyviaPortlandGeneralElectric,emphasizingthehydroelectricpoweravailableforlargedeploymentsthroughoutPortlandandruralOregon.Furtherlarge-scaleconstructionremains

verymuchindemand,withrumorsoffurthercloudserviceinterestalongwithpotentialrelocations.Portland’sriseisindicativeofanumberofsmallermarketsgrowingtobe

OVERALL

THE

RANKINGS:

TOPTEN

01

Northern

Virginia*

Portland*

03

Singapore

04

HongKong

05

Atlanta*

Chicago*

SiliconValley*

08Dallas

09Phoenix

10Seattle

*RankingTie

Forthefirsttime,wereceivedatieforfirstplace.

ofkeyinterestforthedatacenterindustry.Goingforward,expectothersecondarymarketstoseesubstantialjumpsinrankings.

6/CUSHMAN&WAKEFIELD

FollowingPortlandareSingaporeandHongKong.Both

rankhighdespitealackofavailabledevelopableland,withSingapore’snewdevelopmentparametersandHongKong’sgenerallyhighlandprices.However,bothhavestrong

ecosystems,excellentconnectivity,consistentdemand,

andallmajorcloudservicesavailableandexpandingwherepossible.HongKonghascontinueditsrisefromthesixth

spotinlastyear’slisting,asoperatorsremainundauntedbylandlimitationsandpricing.SingaporeremainsapremieremarketintheAPACregion.

Portlandrocketedfrom10thplace

tosharingthetopoftheoverall

standingthisyear.

Atlanta,ChicagoandSiliconValleyaretiedforfifthinour2023ranking.AtlantaandChicagooffersizableincentives,lowercostsoflandrelativetomarketsize,plentyof

developmentinthepipelineandlowerpowercoststhan

mostlargedatacentermarkets.Meanwhile,SiliconValley

hasbeenalongstandingmarketwithhigherlandcosts,butproximitytothehighconcentrationoftechsectorplayerscontinuestomaintaindemandaroundtheBayArea.

Roundingoutthetop10marketsaredependablestalwartsDallas,PhoenixandSeattle—allwithsolidperformance

metricsthataretriedandtrue,yetthatstillretainanumberofoptionsforexpansionandnewentrants.

CUSHMAN&WAKEFIELD/7

*Newmarketin2023report

ALLMARKETS

Amsterdam

Dallas

Johor*

Munich

Santiago

Atlanta

Northern

Virginia

KualaLumpur

Nairobi

SaoPaulo

Austin*

Lagos

Nashville

Seattle

Delhi

Bangkok*

LasVegas

NYC-Northern

Seoul

Denver

NJ

SiliconValley

London

Shanghai

Dublin

Osaka

Beijing

LosAngeles

Singapore

Frankfurt

Oslo

Bengaluru

Madrid

Stockholm

HoChiMinh*

Paris

Berlin

Manila*

Sydney

HongKong

Phoenix

Bogota*

Marseille

Tokyo

Hyderabad*

Portland

Boston

Melbourne

Toronto

Istanbul*

Queretaro

Chennai

Milan

Vancouver

Jakarta

Reykjavik

Chicago

Montreal

Warsaw

Johannesburg

SaltLakeCity

Columbus

Mumbai

Zurich

8/CUSHMAN&WAKEFIELD

TENMARKETSTOWATCH

01

02

03

04

05

06

07

08

09

10

AbuDhabi

Copenhagen

Vienna

Helsinki

Prague

TelAviv

Patagonia

CapeTown

Auckland

Casablanca

We’refollowingseveralmarketsclosely

forfutureinclusionintheMarket

Comparison.

DatacentersinMiddleEasternmarketsareofgrowing

interest,astheyarenearmajortechnologyand

governmenthubs,suchasTelAvivandAbuDhabi.

TherearestillmarketsofinterestintheNordics,with

CopenhagenandHelsinkisittingatkeypointsalong

theBalticSea.ViennaandPragueremainkeyand

stablepointsofaccesstoCentralandEasternEurope.

Anumberofsmallercoastalcities,suchasCapeTown,

PatagoniaorAuckland,whichremainofinterestas

connectivityplays.

CUSHMAN&WAKEFIELD/9

HIGH-WEIGHT

CRITERIA

/MarketSize

/Fiber

Connectivity

/Cloud

Availability

10/CUSHMAN&WAKEFIELD

CUSHMAN&WAKEFIELD/11

MARKETSIZE

Anexistingmajormarkethasamultitudeof

advantagesthatappealtoclientsandoperatorsalike;themostwell-establishedmarketshave

accesstoallmajorcloudservices,allowingforhighperformanceandpeeringopportunities.Thereareknownoperatorsinthesemarkets,withcorrespondingexperiencedtalentforhireandknowledgeablesalesrepresentativesto

assistwithfillingbuildings.Localgovernmentsunderstandtheplanningapprovalprocess,

andutilitiesarenotsurprisedwhenoperatorsinquireaboutlargepowerrequirements.Thelargestmarketsarethusabletogrowthroughthismomentum,atleastuntilallpotentialsitesfordevelopmentdisappear,thepowergrid

eventuallycannotmaintaingrowth,orpoliticalimperativeschange.

Forhyperscalecloudservices,largemarkets

appealfirstasanopportunitytocreatenew

businessandthentoexpandthereafteronce

usagehasbecomecommonplace.Several

serviceswillleaseorbuildamajordatacenter

aftersigninganinitialanchortenant,inthe

expectationthatsurroundingenterprisesor

governmentorganizationsthatconductbusinesswiththeinitialtenantwilllaterjoinonthe

platform.Afterafirsthyperscalerenters,othersfollowtocompeteformarketshare,swelling

thesizeofthecapacityin-marketandleadingtofurtherconstruction,withmid-scalecloudservicesmovinginthereafter.

AMERICAS:Asmanyprimarymarketsgrowandsecondarymarketsmovetowardprimarylevel,NorthernVirginiaremainsthelargestmarket

globallybyfar,withjustunder2.5GWcurrentlyoperational.TheremainderofthetopAmericasmarketsarefamiliartodatacenterveterans:

SiliconValley,DallasandChicago.

APAC:WithmoreaccuratedataonthesizeandscopeofdatacenterdeploymentsinmainlandChina,BeijingandShanghaihavebothrisen

notablyintherankings.Singapore,Tokyoand

Sydneycontinuetobetheotherlargestdata

centerclustersintheregion.In2022,Singaporelifteditsdevelopmentmoratoriumthathalteddevelopmentandputnewguidelinesfor

developmentinplacethatpromoteresponsibledevelopment,energyusageandsustainable

practices.

EMEA:LondonandFrankfurtcontinuetheir

rolesasthelargestdatacentermarketsin

Europe.Lastyear,wenotedconcernsonthe

availabilityofpowerforfuturedevelopments

inFrankfurt.Therehasbeenapparentprogressonthisfront,asFrankfurt’slocalgovernment

designatedaseriesofspecificzonesfordatacenterdevelopment.Thissolutionismoreidealthanacompletehalttonewprojectsthatothermarketshaveestablishedandshouldhopefullyensuresufficientpowergoingforward.

LargestMarkets

NorthernVirginia

Beijing

London

Singapore

Tokyo

Frankfurt

Shanghai

Sydney

Dallas

SiliconValley

12/CUSHMAN&WAKEFIELD

3000

2500

2000

1500

1000

500

0

HIGH-WEIGHT

TotalPower(MW)

APAC

EMEA

Americas

Source:Cushman&WakefieldResearch

CUSHMAN&WAKEFIELD/13

HIGH-WEIGHT

FIBERCONNECTIVITY/

Fiberdensityandqualityareprimarydriversforlocatingadatacenter,withfiberserving

toconnectthefacilitytoothersandtothe

enduser.Morenetworksarealwaysbetter,

withthediversityoffiberleadingtolower

latencyandhigherperformance,evenif

certainnetworksconnectedtoaparticular

datacentermayhavebandwidthissues.

Bandwidthisanincreasingdiscussionpointtotheedge,consideringthemoveoverthepasttwoyearstoawork-from-homeenvironmentandthecorrespondinglyconstantusageof

videoconferencingplatformsformeetings

thatwereonceinperson.Fibernetworksareconstructedinanarrayofformats,withshort-haulfiberlinkingametropolitanareaorlong-haulfiberconnectingmultipleregionsand

countries.Underseacablesaddtothemix,

directlyconnectinglandingpointsincountriesacrossseasoroceanstotransmitinformation.Likelastyear,weutilizetheOoklaSpeedtestGlobalIndexforbroadbandspeedsasan

indicatorforfiberconnectivityandspeed.

ResultsoftheSpeedtestGlobalIndex

analysisshowthatSantiago,Chilehas

surpassedSingaporeforthetopspot

globally.Additionally,BeijingandShanghaisubstantiallyroseinrankings,asChinahas

continuedfiberinfrastructureimprovements.

Singaporecontinuestobeastrongperformer,withthebusiness-friendlycity-statelong

knownasaconnectivitypointacross

SoutheastAsia.NewentrantBangkokfollows,proving,likeSantiagodidlastyear,thatlow

latencyandhighconnectivitycanbepresent.

Santiago,ChilehassurpassedSingaporeforthetopspotglobally.Additionally,BeijingandShanghaisubstantially

roseinrankings.

14/CUSHMAN&WAKEFIELD

TopMarkets

Santiago

Beijing

Denver

Shanghai

LasVegas

Singapore

LosAngeles

Bangkok*

Nashville

HongKong

NewYork/Northern

NewJersey

Portland

Seattle

Nashville

SaltLakeCity

Dallas

Phoenix

*Newmarketin2023report

Atlanta

Austin*

SiliconValley

Boston

Chicago

Columbus

NorthernVirginia

HIGH-WEIGHT

CLOUDAVAILABILITY/

Trendsthatbeganpre-pandemicandlaunchedfullyduringthepandemichavecontinued

movingforward;innearlyanymarketaroundtheworldhyperscalecloudservicesrepresent70-80%ofallleasinginanygivenquarterastheall-outbattleformarketsharecontinues.Thethreelargestbymarketsize(Amazon

WebServices,MicrosoftAzure,GoogleCloud)continuetoinnovateapace,addinganarrayofservicesattheedgetojoinwithcorehosting,storageanddatabaseoptions,entrenching

usageinsidethelargestenterprisesand

governmentorganizations.Asfurtherentitieschoosetomovemoreoftheirworkloadsto

thepubliccloudforscalabilityandeaseof

access,avarietyofmarketswillbenefitasthehyperscalersworktobringclientsonline.

Ofcontinuedincreaseinimportanceare

marketsthatoffermultiplecloudservices,

asearlyadoptersarenowdiversifyingtheir

workloadstocreatetruehybridIT.Thiswill

oftenincludemultiplepubliccloudinstancesforvaryinguses,alongwithsomeuseof

privatecloudinacolocationenvironment

forothers.Marketsthatofferservicessuch

aspeeringopportunitiesandplentyofon-

rampswillgainbusinessfromthesemore

sophisticatedorganizations,especiallythosethatlooktoaccessawidearrayofoptionsandseektoutilizefurtherspecializedapplicationsinthefuture.Oneadjustmentwe’vemadeto

ourmethodologyistoincludethepresenceofcloudproviders’edgelocationsina

market.Theseedgelocationsprovidedirectaccesstoasecurebackboneconnectedtolargeravailabilityzonesandcachesitesthatthecloudprovidermaintainsintheregion,

reducinglatencyandopeningaccesstohighperformanceformoreusers.

Ofthe63marketsprofiledinthisreport,

34nowofferallthreemajorcloudservices,allofwhichhaveconsiderablefuture

expansionplannedandlandacquiredin

expectationoffurthergrowth.NewentrantHyderabadalreadyhastwocloudservicespresent,providinganalternativetoMumbaiasatopIndianmarketwithcloudaccess.

Berlin,Dublin,KualaLumpur,SantiagoandJohannesburgallrosetohavesomeformofpresencefromallthreecloudproviders.

Ofthe63marketsprofiledinthisreport,34arenoweitherhometoavailabilityzonesor

edgelocationsforallthree

majorcloudservices

TopMarkets(Allthreeservices)

Toronto

Montreal

Northern

Virginia

Chicago

Dallas

LosAngeles

SiliconValley

SaoPaulo

London

Amsterdam

Frankfurt

Paris

Singapore

Tokyo

HongKong

Sydney

Mumbai

*Newmarketin2023report

Portland

Seattle

Zurich

Madrid

Milan

Melbourne

Warsaw

Seoul

Osaka

Atlanta

Jakarta

Berlin

Dublin

KualaLumpurSantiago

Johannesburg

Austin*

CUSHMAN&WAKEFIELD/15

CLOUDAVAILABILITY

HyperscaleCloudRevenue($BForecast)

$800

$728.0

$700

$600$587.3

$500

$436.5

$400

$322.5

$300

$236.9

$200$173.3

$125.9

$100$91.0

$0

20202021202220232024202520262027

Source:StructureResearch

16/CUSHMAN&WAKEFIELD

HIGH-WEIGHT

HyperscaleCloudRevenuebyRegion($B)

$170.6B

Total

$2.7B

$10.9B

Canada

$16.6B

$19.5B

China

UnitedKingdom

RestofEurope

$7.4B

EastAsia

$1.1B

MiddleEast/Africa

$5.6B

India

$87.6B

UnitedStates

$13.0B

SouthEastAsia

$3.4B

Australia/

NewZealand

$2.8B

LatinAmerica

Source:StructureResearch

CUSHMAN&WAKEFIELD/17

MID-WEIGHT

CRITERIA

Incentives

Vacancy

SmartCities

TaxesPolitical

Stability

Sustainability

Development

Pipeline

18/CUSHMAN&WAKEFIELD

MID-WEIGHT

INCENTIVES/

Astrongpackageofdatacenterincentives

signalsthatnotonlyisalocalareaamenabletosupportingthedatacenterindustry,but

thattherearelikelyexistingrelationships

withlocalutilitiesandcommunitiestoallow

forsuchdevelopmenttocontinueatlarge

scale.Incentivescomeinmanyforms,thoughmainlyinvolvetaxrelieffrompropertytaxes,

valueaddedorsalestaxes,discountedpowerwithusageofrenewables,andotherfinancialsupportfromtypicalrateschargedforsmaller-scalepurchases.Asthelargestdatacenter

campusescostninefiguresandbeyondovertime,thistaxsupportenablesareastobe

consideredfordevelopmentmorequicklywithlong-termexpansionsplannedwellinadvance.

AMERICAS:Whileindividualpackagesbasedonthesizeofaprojectarefoundinmany

countries,explicitstate-levelsupportisfoundmostoftenintheUnitedStates,where30of

50statesnowprovidesomeformofbenefit.

Localcounty-orcity-levelareaswilloften

providetheirownincentivepackagesto

createcompellingscenariosfordevelopers

determiningwheretobuild.Thisyear,we

incorporatedadditionalmarket-levelincentivesfordatacenterdevelopmentintoourmodel

beyondpurelystate-levelincentivestructures.

BeyondtheUnitedStates,

APAC:WithconsiderabledatacentergrowthplannedacrossIndia,TamilNadu(Chennai)

andTelangana(Hyderabad)haveboth

establisheddatacenterpolicieswithstrong

incentivestructures.Additionally,more

emergentmarketsintheregionhavestartedtoconsiderpotentialincentivestructures,withanumberusingfreeenterprisezonepoliciesalongwithadditionaltaxrelief.

EMEA:Taxincentivescanalsobefoundin

certainNordicmarkets,withReykjavik,Oslo,andStockholmallofferingpackagesthat

lowertaxesorprovideincentivesforusing

renewables.InFrance,bothParisandMarseillealsoofferbenefitsforthosewhoacquire

renewableenergyfortheirprojects.

TopMarkets

OfferingIncentives

Reykjavik

Seattle

SaltLake

City

Stockholm

Oslo

Kuala

Lumpur

Chennai

Paris

LasVegas

Marseille

Phoenix

Chicago

Hyderabad*

Nashville

*Newmarketin2023report

Mumbai

Austin*

Dallas

NorthernVirginia

Atlanta

Columbus

CUSHMAN&WAKEFIELD/19

TAXES/

Whileincentivepackagestorelieveoveralltaxburdenonaprojectareattractorsfordata

centerdevelopment,newphasesorsmaller

buildsmaynotqualifyforminimumthresholdstoachievethisrelief.Theseprojects

requirethepurchaseofthesamematerials

(generators,coolingsystems,servers,racksandmore)butmayhavetopayfullsalesorvalue-addedtaxesonthecostsofallgoodspurchased.Asalestaxisapaymenttoalocalornationalgovernmentforthetotalofgoodssold,whileavalue-addedtaxispaidbythe

ultimateuserattheendofthevaluechain.Bothcanrapidlyaddupasmaterialsare

purchasedoverthecostofaproject.

Asnotedinpreviouseditionsofthisreport,twomarketscoveredhaveneitherofthese

taxes:HongKongandPortland.HongKongisaglobalfinancialandbusinesscapital,withalonghistoryofpro-businesspoliciesand

anaccordinglyrobustdatacentersector.

Portlandisarapidlygrowingdatacenter

marketonthewestcoastoftheUnitedStates,withdensefiberandsitesavailableinthe

local-marketclusterinthesuburbanHillsboro.

Otherlargemarketshavecontinuedtoenjoylowertaxation,includingtheworld’slargestinNorthernVirginia,withSingaporeandthedatacenterclusterinNorthernNewJerseyalsoofferinglowertaxesthanmanyprimarydatacenterlocations.

Severalnewmarketshavemadesubstantial

inroadsintothetop10.Johor,asa

development-friendlyemergentmarketwithproximitytoSingaporeandKualaLumpur,brokeintothefifthspotonthisyear’slist.

Austin,anotherlowtaxsecondarymarketintheUnitedStates,beatoutBostonfortheseventhspotinthisyear’slist.Lastly,new

marketentrantBangkokemergedontothethislistatthetenthspot

Severalnewmarketshavemadesubstantialinroadsinto

thetop10inthiscategory:Johor,AustinandBangkok.

TopMarkets

HongKong

Portland

NorthernVirginia

Johor*

KualaLumpur

Austin*

Boston

Seattle

NewYorkCity/

NorthernNewJersey

Bangkok*

*Newmarketin2023report

20/CUSHMAN&WAKEFIELD

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

0%

MID-WEIGHT

SalesTax/VATPercentage

Americas

APAC

EMEA

*WhileingeneralIndiahasa18%Goods&ServicesTax(GST),InternationalinvoicesbeingraisedinIndiaattract0%GST.

Also,localclientsgetInputTaxCreditswhichreducesthetaxessignificantly.

Source:Cushman&WakefieldResearch,multiplesources

CUSHMAN&WAKEFIELD/21

POLITICALSTABILITY

Businessworksbestinastable,highlyfunctionalenvironmentandthesameholdstrueforthedatacenterindustry.Asdatacentersare

consideredmissioncriticaltokeepapplications,networks,andthusentirecompaniesoperatingattheirhighestefficiency,thegreaterpoliticalsituationofthedatacenterlocationfactorsintoanydecisionmaking.Asanestablishedproxyforstability,theWorldGovernanceIndicators

createdbytheWorldBankhavebeenconsideredforeachmarketreviewed.Theindicatorsincludesixdistinctdimensionsofstability:

1VoiceandAccountabilityincludestheabilityofacountry’spopulationtoselecttheirgovernment,along

withfreedomofexpression,freedomofassociation,andfreemedia.

Fromadatacenterperspective,a

governmentthatallowsitspopulationtocommunicatefreelymeansasafer

dataenvironmentfreefrominterferenceviacensorshiporoutrighttheft.

2PoliticalStabilityandtheAbsence

ofViolenceorTerrorismreviewsthe

likelihoodofpoliticalupheavalina

countryandtheviolencethatcould

occurduringsuchupheaval.Political

violenceoftenleadstochaos,servicedisruptionandpropertydestruction,allofwhichareproblematicformission

criticalapplications.

3GovernmentEffectivenessincludesthe

perceivedqualityofpublicservices,

civilserviceanditsindependencefrom

politics,qualityofpolicycreationand

implementation,andthegovernment’s

commitmenttoallofthis.Ahighly

effectivegovernmentleadstoproperty

beingregisteredproperlyandontime,

electricalgridsfunctioningastheyshould,andsensiblezoningrequirements.

4RegulatoryQualityconsiderstheabilityofagovernmenttocreateandimplementregulationsthatallowprivatesector

development.Well-structuredandflexibleregulationsleadtoaclearunderstandingfordevelopmentand