DATA CENTRE PERSPECTIVE: APAC & INDIA

Everything Everywhere All At Once

JULY 2024

Cushman & Wakefield | MITSUI FUDOSAN 1

 APAC DCAT LOCAL MARKET LEADS

OUR PEOPLE ALEX MOFFATT

Australia
JOHN SIU
Hong Kong

CONFIDENTLY GLOBAL, EXPERTLY LOCAL

ANDREW CHAN DAVID CHEN
Our Asia Pacific Data Centre Advisory Team (APAC DCAT), as part of our Global Data Centre Advisory Group, has created optimal solutions and location strategies to Mainland China Taiwan
address highly complex IT requirements for enterprise clients across the region and globally since 2004. Our multi-disciplined team, consisting of experts across a
spectrum of advisory services, focus specifically on the data centre market for seamless delivery. Every client requirement is unique; we have the experience to
develop long-term strategies that drive wise investment decisions for enterprise users, colocation providers, hyperscalers, sector investors and developers.

GAURAV PANDEY WIRA AGUS

India Indonesia
Click on each name to email them

ASIA PACIFIC DATA CENTRE ADVISORY TEAM (APAC DCAT)

VIVEK DAHIYA TODD OLSON REBECCA JUNG TIMOTHY GREGERSEN JOHN PRITCHARD
Head of Asia Pacific Data Executive Sponsor, Associate Director, Japan South Korea
Centre Advisory Team APAC DCAT & Managing Business Development
Director, Japan & Korea Services, Asia Pacific

SHIVANI JADON JAMES NORMANDALE GORDON MARSDEN TIFFANY GOH TODD HANRAHAN
Assistant Vice President, Alternative Assets Lead, Project Head of Capital Markets, Malaysia New Zealand
Data Centre & Cloud Advisory & Development Services, Asia Asia Pacific
Pacific

CHRIS CUFF THERESE CASTRO BRENDA ONG

Data Centre Account Philippines Singapore
Management, Asia Pacific

GLOBAL EMEA AMERICAS

JACOB ALBERS ANDREW FRAY JESSICA HOWE GARETH POWELL TRANG BUI
Head of Alternatives Insights, Head of EMEA Data Centre Vice President, Global Growth Thailand Vietnam
Global Think Tank Advisory Team Verticals

Cushman & Wakefield | MITSUI FUDOSAN 2

Cushman & Wakefield | MITSUI FUDOSAN 3
01
GLOBAL SNAPSHOT

02
ASIA PACIFIC OVERVIEW

03
INDIA DEEP DIVE

Q&A
GLOBAL SNAPSHOT
 THE DISTRIBUTION OF GROWTH
43GW* TO BE ADDED TO THE EXISTING 32GW OPERATIONAL CAPACITY

Key Assumptions:

- Development pipeline excludes

developments currently at land stage

- Vacancy is only calculated on Operational

Colocation IT Load
AMERICAS EMEA
2.5X 2X - The size of the bubble directly co-relates
to the size of the regional markets
increase in total capacity increase in total APAC
capacity 2.2X - ‘Others’ comprise of the telecom & edge
operators
increase in total
capacity
• Operational Capacity: 16,820MW
o Colocation: 8,909MW
o Cloud: 6,835MW
o Others: 1,076MW • Operational Capacity: 9,675MW
• Vacancy: 5% • Operational Capacity: 6,218MW o Colocation: 8,010MW
• Development Pipeline: 24,794MW o Colocation: 4,659MW o Cloud: 1,419MW
o Colocation: 20,963MW o Cloud: 1,286MW o Others: 246MW
o Cloud: 3,431MW o Others: 273MW • Vacancy: 15%
o Others: 400MW • Vacancy: 9% • Development Pipeline: 11,896MW

• Development Pipeline: 6,528MW o Colocation: 9,696MW

o Colocation: 5,468MW o Cloud: 2,117MW

o Cloud: 1,008MW o Others: 84MW

o Others: 51.44MW
• Estimate
• H1 2023

Cushman & Wakefield | MITSUI FUDOSAN Source: DC Byte extract as of Dec 2022 and C&W Research 6
 GROWTH ACROSS ESTABLISHED & NEW CITIES
SPREAD BY MARKETS >500 MW
Markets with >500 MW of Operational IT Load

Des San
Northern Columbu Eastern Amsterda Singapor Omaha, Silicon Hong
Beijing Phoenix Shanghai Dallas Atlanta Chicago London Tokyo Dublin Sydney Moines, Antonio, Frankfurt Portland
Virginia s Oregon m e NE Valley Kong
IA TX
Hyperscale IT Load 1382 455 310 165 286 1125 1077 209 235 357 287 869 117 163 567 64 676 547 10 0
Colocation IT Load 3312 1296 1249 1143 1002 45 0 862 747 962 584 627 29 750 679 167 638 7 79 601 542 531

Markets with >500 MW of (Operational + Development) Pipeline

Northern Columbu Eastern Silicon Amsterda Hong Des Singapor San Salt Lake
Atlanta Beijing Tokyo Phoenix Shanghai Dallas London Sydney Chicago Frankfurt Dublin Mumbai Omaha Paris Seoul
Virginia s Oregon Valley m Kong Moines e Antonio City
Hyperscale IT Load 1530 609 538.08 207 446 377 329 105 408.4 1556 269 40 814.8 295 1456 187 1046 0 8.3 357.1 0 926 286.6 577 186
Colocation IT Load 7205 2822 2147 2062 1729 1787 1482 1649 1316 149 1358 1583 693 1192 24 1040 34 1047 942 584 941 9 627 179 447

*Excludes developments currently at land stage

Cushman & Wakefield | MITSUI FUDOSAN Source: DC Byte extract as of Dec 2022 and C&W Research 7
PARTNERSHIPS KEY TO INSTITUTIONAL INVESTMENT
IN-COUNTRY DEVELOPERS/ INVESTORS ACT AS “PROBLEM SOLVERS”

Notable Investments RE Funds Targeting Data Centers – Fund Size

$16B 15,167.5
$10B
$14B

$12B
$5.5B
$10B 9,282.2

$11B $8B

$6B 5,145.0

$15B $4B
2,750.0
$2B 1,500.0 1,467.0
520.0
63.2
$B
2015 2016 2018 2019 2020 2021 2022 2023

Cushman & Wakefield | MITSUI FUDOSAN 8

ASIA PACIFIC
OVERVIEW
H2 2023 UPDATE

Beijing Mumbai
Shanghai 2,827MW 3,065MW
2,229MW Tokyo
Sydney 2,747MW
Singapore 2,007MW
Seoul

Kuala Lumpur
Johor
Jakarta
Hong Kong SAR
GROWTH SCORE

Delhi NCR
Osaka
Guangzhou Melbourne
Chennai
Bangkok
Hyderabad
Manila Northern Virginia
8,677MW

Taipei
Batam
Pune
Canberra
Bengaluru
Perth
Busan
Auckland
Hanoi
Ho Chi Minh
Brisbane
0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000 3,250 3,500
Emerging Developing Established Powerhouse

SECONDARY PRIMARY

Cushman & Wakefield | MITSUI FUDOSAN 10

 TOP COLO SERVICE PROVIDERS & PRESENCE
ASIA PACIFIC (EXCL. MAINLAND CHINA)

152MW  The top 10 colo providers in Asia Pacific (excluding Mainland China)
157MW take up ~50% of the current regional colocation market share
according to operational MW
615MW
164MW 5%
5%
21%
6%

167MW
6%
MAJOR CHINESE COLO OPERATORS
TOTAL NO.
6% MARKET SHARE % COLO SERVICE
OPERATION OPERATIONAL
OPERATIONAL COLO PROVIDER
167MW IT MW DCS
DC’S (6.09 GW) 14%
813 67
11% 399MW
606 22

325MW
13%
13% 322 47

382MW
371MW
Source: Cushman & Wakefield (export April 2024).
Cushman & Wakefield | MITSUI FUDOSAN Source: CW Research and Advisory 11
 ASIA PACIFIC SNAPSHOT
Half-Yearly Data Centre Acquisition Volumes by Market (Excluding DC Development
Sites)

• Data centre volumes off to a strong start in 2024

• Japan, Malaysia, Singapore and Hong Kong saw increasing
popularity in recent quarters.
• Data centres are among the most sought-after alternative
assets by investors given the relatively high returns and
positive future growth prospects driven by increasing need
for AI.
• Access to scalable capital, land banks and power supply, and
relationships with large tech companies are key to success.

Source: Source: MSCI Real Capital Analytics, April 2024. Deals USD 10m+. Volumes here refers to acquisition of standing assets, including forward sales. Platform deals included.

Cushman & Wakefield | MITSUI FUDOSAN 12

 ASIA PACIFIC DATA CENTRE CAP RATES
DC cap rates in Australia, Japan and Singapore have generally compressed over the last 10 years

• Australia: DCs are currently trading at 5.0% to 5.5%

DC TRANSACTION CAP RATE IN ASIA PACIFIC
cap rate for shell-and-core assets (older facilities
12.0%
with shorter term leases are typically 75-100 bps
higher). This represents a 100-150 bps compression
10.0%
from 2019.

• Hong Kong: DC valuation cap rates range between

8.0% 5% and 6% depending on the ownership type. This
represents a 100-200 bps cap rate expansion from
2018.
6.0%

• Japan: DCs are currently trading at around 4% cap

rate (fitted-out assets with high-quality tenants and
4.0%
long-term leases), which is about 100 bps lower
than 2022. Older facilities will be 100-150bps softer
2.0% than this.

• Singapore: DC cap rates (for non-CBD assets)

0.0% currently averaged between 6.5% and 7% (leasehold
11/14/2007 8/10/2010 5/6/2013 1/31/2016 10/27/2018 7/23/2021 4/18/2024
land), which is about 50-100 bps lower than 2019
Australia Hong Kong Japan Singapore
• SG DC REIT dividend yield averaged 5.6% as of end-
2023 (both REITs largely /entirely overseas assets)
Source: MSCI Real Capital Analytics, May 2024, for income producing assets only (excluding development)

Cushman & Wakefield | MITSUI FUDOSAN 13

INDIA DEEP DIVE
MARKET SNAPSHOT

 AVERAGE GDP GROWTH

3.9% in last 5 year (6.8% ix 2020 excluded)
5.5% in last 10 years DELHI
6.1% YOY till end of 2024

 POPULATION GROWTH FORECAST (CAGR)

0.87% between 2023 - 2028

KOLKATA
 DATA CENTRE MARKET GROWTH FORECAST
15.1% CAGR between 2021 - 2026
MUMBAI
PUNE
HYDERABAD PRIMARY MARKETS
Country Population Live MW Pop. / MW
SECONDARY MARKETS
India 1,439,486,305 1,075 13,39,057
BANGALORE CHENNAI
Singapore 6,047,195 975 6,202

VIEW OUR CAPABILITIES

Source: GDP & Population Growth Rate – World Bank, Population, DC Growth - Arizton Research, Pupluation - Worldometers
Cushman & Wakefield | MITSUI FUDOSAN 15
 INDIA
DATA CENTRE MARKET OVERVIEW

Q1 2024 KEY INDICATORS* MAJOR PLAYERS

No. of operators / data centres In operation

24 / 102 1,075MW
Under construction Planned
1,117MW 1,645MW

CABLE CONNECTIVITY & HYPERSCALERS MARKET SHARE BY DATA CENTRE TYPE

N.B. Operational data centres only

1%
Delhi 4%

Colocation
Mumbai Hyperscale Cloud
Pune
Telecom

Chennai

95%

Source: Cushman & Wakefield Research (export April 2024), Submarine Cable Map 16
Cushman & Wakefield | MITSUI FUDOSAN *Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre 16
facilities in the market and excludes Captive & ICT. All values IT MW.
 MUMBAI (MMR)
Q1 2024 KEY INDICATORS*
Vacancy rate
No. of DCs
38
In operation
544MW
UC
290MW 17%
Planned
972MW
Vacancy rate
29%

POWAI PANVEL
145MW in operation across 9 data centres 50MW in operation across 1 data centre
18% vacancy rate POWAI 40% vacancy rate
24MW UC / 105MW planned 2.5MW UC / 0MW planned

THANE – BELAPUR ROAD

THANE-BELAPUR ROAD
328MW in operation across 23 data centres
33% vacancy rate
263MW UC / 867MW planned

PANVEL

Source: Cushman & Wakefield Research (export April 2024)

Cushman & Wakefield | MITSUI FUDOSAN *Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT. All values IT MW. 17
 HYDERABAD
Q1 2024 KEY INDICATORS*
Vacancy rate
No. of DCs
9
In operation
84MW
UC
402MW 17%
Planned
198MW
Vacancy rate
15%

WEST

WEST HYDERABAD
36MW in operation across 6 data centres
15% vacancy rate
81MW UC

SOUTH

SOUTH HYDERABAD
48MW in operation across 3 data centres
0% vacancy rate
322MW UC / 198MW planned

Source: Cushman & Wakefield Research (export April 2024) 18

Cushman & Wakefield | MITSUI FUDOSAN *Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT. All values IT MW. 18
 BENGALURU
Q1 2024 KEY INDICATORS*
Vacancy rate
No. of DCs
12
In operation
96W
UC
55MW 17%
Planned
No. of DCs Vacancy
Vacancy rate rate
11 4MW 27%22%

PERIPHERAL EAST
59MW in operation across 4 data centres
PERIPHERAL EAST
23% vacancy rate
52MW UC

PERIPHERALSOUTH
23MW in operation across 4 data centres
17% vacancy rate
4MW planned

PERIPHERALSOUTH

Cushman & Wakefield | MITSUI FUDOSAN Source: Cushman & Wakefield Research (export April 2024). Map does not include NexGen’s DC in Bidadi 19
19
*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT. All values IT MW.
 DELHI NCR
Q1 2024 KEY INDICATORS*
Vacancy rate
No. of DCs
13
In operation
113W
UC
17%
109MW 12 164MW
Planned
No. of DCs Vacancy
Vacancy rate rate
58%24% NOIDA

NOIDA
79MW in operation across 8 data centres
17% vacancy rate
109MW UC / 139MW planned

GURUGRAM
24MW in operation across 2 data centres
60% vacancy rate
25MW planned

GURUGRAM

Cushman & Wakefield | MITSUI FUDOSAN

Source: Cushman & Wakefield Research (export April 2024) 20
*Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT. All values IT MW. 20
 CHENNAI
Q1 2024 KEY INDICATORS*
No. of DCs PlannedVacancy rate rate
Vacancy
No. of DCs
12
In operation
145MW
UC
182MW305
No. of DCs
17%
152MW16%
Vacancy Vacancy
rate rate
9% 31%

AMBATTUR

AMBATTUR
88MW in operation across 5 data centres
34% vacancy rate
115MW UC

SIRUSERI
47MW in operation across 4 data centres SIRUSERI
32% vacancy rate
55MW UC / 74MW planned

Source: Cushman & Wakefield Research (export April 2024)

Cushman & Wakefield | MITSUI FUDOSAN *Definition: Key indicators are based on operational Hyperscale Cloud, Colo, Edge & Telco data centre facilities in the market and excludes Captive & ICT. All values IT MW. 21
 CHANGING LANDSCAPE OF COLO CAPACITIES
Mumbai
Mumbai
54%
51%

Kolkata
Pune 2%
3%

Bengaluru
4%
Kolkata 1%
Additional Colo
Existing Colo
977 Hyderabad 4% Capacity as of
2023
Capacity (UC &
Planned) 2028 2.32
MW GW

Pune Delhi NCR

5% Chennai 11%
15%

Bengaluru Delhi NCR

10% 11%
Chennai
14% Hyderabad
15%

Source: C&W Research

* Top 7 cities (Mumbai, Bengaluru, Chennai, Hyderabad, Delhi-NCR, Pune, Kolkata). The installed capacity includes only third-party colocation data centres. It also represents the total IT load.
** Total size of colocation data centres in top 7 cities represents the overall built-up area

Cushman & Wakefield | MITSUI FUDOSAN 22

IS 250+ MW ANNUAL STOCK ADDITION THE NEW NORMAL?

India Data Center Colo capacity addition post COVID India Data Center Colo capacity absorption, 2021-2023
800
1200
720
700
977
1000 610
600
800 515
719
500
593
600 400
491

400 300

200
200

100
0
2020 2021 2022 2023 0
2021 2022 2023

Installed IT Load (MW) Total absorption (MW)

• 20% growth in 2022 in installed capacity yoy. • Incremental absorption of ~100 MW every year highlighting strong
• Capacity doubled in 2023. demand
250+ MW expected to be added in 2024.

Cushman & Wakefield | MITSUI FUDOSAN Source: C&W Research

23
CAPACITY ADDITION AND DATA CONSUMPTION
Average annual Colo DC capacity addition, 2024-2028 est.
Singapore 35
Indonesia 99
France 129
South Korea 143
UK 205
Australia 256
Japan 323
India 464
China 503
USA 536
0 100 200 300 400 500 600

USA China India Japan Australia UK South Korea France Indonesia Singapore

Measuring penetration of Colo DC capacity across nations

0.3 4.5 0.4 0.3 0.8 0.1 13.2 1.1 2.8 18.8
16000 8,150
14000 7,150
PetaByte / Month

12000 6,150

MegaWatt
10000 5,150
8000 4,150
6000 3,150
4000 2,150
2000 1,150
0 150
USA China UK Australia Japan Singapore India France S. Korea Indonesia

Mobile data consumption IT Load (MW)

(PetaB /month)
Cushman & Wakefield | MITSUI FUDOSAN 24
Source: C&W Research & Analysis
LOWER DIGITAL PENETRATION = SCOPE FOR GROWTH
Internet penetration OTT penetration
India 30%
India 46%
USA
USA
China
China
Japan
Japan
Australia
Australia
Singapore
Singapore
UK
UK
S. Korea
S. Korea
Indonesia
Indonesia
France
France
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%

Smartphone penetration Social media penetration

India 47% India 33%
USA USA
China China
Japan Japan
Australia Australia
Singapore Singapore
UK UK
S. Korea S. Korea
Indonesia Indonesia
France France
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Cushman & Wakefield | MITSUI FUDOSAN Source: International Telecommunications Union (ITU), Global Data, Ormax, Meltwater, Statista, C&W Research
25
DIGITAL PENETRATION AND FUTURE EXPECTED ENHANCEMENT

Average price of data & 5G launch

India’s digital penetration metrics, 2022 & $14.00
period
2027 $12.55

$12.00

$10.00

$8.00

$6.00 $5.62

$3.85
$4.00

$2.00
$0.57 $0.61 $0.79
$0.41 $0.46
$0.17
$-
India USA China Japan Australia Singapore UK South Indonesia
Korea

Source: Department of Telecommunications, Ormax, Statista, C&W Research Source: Cable.co.uk, Statista, C&W Research

Cushman & Wakefield | MITSUI FUDOSAN 26

 CONCLUSION: INDIA HAS A LONG RUNWAY
Internet Users approach – Existing & Ideal capacity Mobile data consumption approach – Existing & Ideal capacity

5.0 GW 6.9 GW

3.3 GW 3.3 GW

977 MW 977 MW

Inner circle – Existing colo capacity Middle circle – Existing +UC+ Planned capacity Outer circle – Ideal capacity

AT 4.9 GW, INDIA COULD BE “3RD LARGEST DATA WITH 6.9 GW, INDIA COULD BE “2ND LARGEST
CENTRE MARKET” DATA CENTRE MARKET”

Source: C&W Analysis Source: C&W Analysis

Cushman & Wakefield | MITSUI FUDOSAN 27

END |
TODD OLSON
Executive Sponsor, APAC DCAT &
Managing Director, Japan & Korea

VIVEK DAHIYA
Head of Asia Pacific Data Centre Advisory
Team (APAC DCAT)

REBECCA JUNG
Associate Director, Business Development
Services, Asia Pacific

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Disclaimer: The information contained within this report is gathered from multiple sources
considered to be reliable. The information may contain errors or omissions and is presented without
any warranty or representations as to its accuracy.

Copyright © 2023 Cushman & Wakefield. All rights reserved.

Cushman & Wakefield | MITSUI FUDOSAN 28

INDIA’S POWER GENERATION CAPACITY TO DOUBLE BY 2030

Current & Forecasted power generation capacity in select India’s forecasted renewable and non-renewable power capacity, FY
nations 2030

1.7 GW

Source: Indian Ministry of Power, Energy Information Administration USA, Global Data, World
Bank, International Trade Administration USA, CW Research estimates. Source: Central Electricity Authority, C&W Research

Cushman & Wakefield | MITSUI FUDOSAN 29

SURGE IN INDIA’S SOLAR POWER GENERATION CAPACITY

Top five nations with highest installed renewable power capacity, 2022 India’s solar power generation capacity, FY 2016 – FY 2022

60 35
China 1206
54 30
50

Share of renewable energy (%)

Installed solar capacity (GW)
USA 371 25
40 40.1
34.6
20
Brazil 175 30 28.2

21.7 15

20
India 168
10
12.3
10 6.8 5
Germany 154

0 0
0 200 400 600 800 1000 1200 1400 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Installed renewable power capacity (GW) Installed solar capacity (GW) Share of total renewable energy (%)

Source: International Renewable Energy Agency

Note: Data includes solar, wind, hydro, geothermal Source: Ministry of New & Renewable Energy, India

Cushman & Wakefield | MITSUI FUDOSAN 30