DATA CENTRE UPDATE

APAC:
Hong Kong, Singapore,
Sydney, Tokyo
DATA CENTER UPDATE

HONG KONG
SPRING 2021

Hong Kong Data Center Market Moves From Strength to Strength

Key Indicators
Several global data center markets have defied expectations throughout the pandemic, with neither COVID-19
nor geopolitical tensions pausing local growth throughout Hong Kong. As with other key real estate sectors,
Under Construction (1H21-2025) newly released sites with data center planning permission are swiftly bid up to impressive pricing as Mapletree’s
4.16M sf acquisition of a site early in the year proves. The global investment giant has elected to construct their first local
project, with first phase completion of this speculative build expected by 2023. Established operators CITIC,
Equinix, and SUNeVision are each continuing on new builds, and mainland operator GDS is underway on a
previously announced initial phase of their introductory Hong Kong project. Global Switch and AirTrunk both
Total Stock (End-1Q21) completed large projects in recent months, with AirTrunk continuing market entry across several major cities
regionally. Expect continued development in coming months, with absorption and interest both remaining high
8.38M sf and plenty of investment chasing available potential clientele.

Transaction Volume New Connectivity Options Coming Soon

(2021 YTD) While recent news reports indicated that Facebook and Google were dropping a previously proposed Hong
Kong-Los Angeles undersea cable, further connectivity will soon link Hong Kong to other regional locations. The
HKD 812.9M Asia Direct Cable is scheduled to go live by the end of 2022, with no fewer than eight major telecommunications
firms providing capital and know-how for the 9.400-kilometre system. The cable will link Hong Kong to Japan,
the Philippines, mainland China, Vietnam, Thailand, and Singapore. Also coming online next year is the similar
Southeast Asia-Japan Cable 2, backed by no fewer than ten major corporations and linking Hong Kong to South
Hong Kong Market Map Korea, Japan, mainland China, Taiwan, Vietnam, and Thailand. More prosaically, the China Mobile-backed
Hainan to Hong Kong Express cable will link Hong Kong to Wenchang and Zhuhai, with operations commencing
this year.

Hong Kong as a Hub for Regional Data Center Investment

Several data center companies view the local financial power available and the flexibility of a listing on the Hong
Kong Exchange (HKEX) as key for locating their official headquarters in Hong Kong. As noted elsewhere in this
report, US NASDAQ-listed GDS recently completed a secondary listing on the HKEX, providing sizable capital
for future expansion both locally and in new and current markets across mainland China. The listing was the
second large capital raise in 2020 for the company, after receiving an earlier HK$4 billion injection from
Hillhouse Capital and STT Data Centres. A more recent launch was the formation of Turbidite, a new venture
helmed by data center veterans and backed by New World Development, the locally listed insurance, retail, and
hotel conglomerate. Turbidite is taking an intriguing initial foray to Guam for their first data center, as the once-
overlooked island has gained increased data center importance with the recent announcement of two new
cross-Pacific undersea cables that will connect Guam to Asia and North America. Older organizations have also
long used Hong Kong as a base for regional expansion; Chayora was founded in 2011 to target international
companies requiring China deployments, opening an initial campus in Tianjin and moving ahead in Shanghai.
With the large amount of local capital interested in the data center sector, expect further launches of new
ventures in coming years.
DATA CENTER UPDATE

HONG KONG
SPRING 2021

Ecosystem Developments MORE INFORMATION

Keith Chan
• Global Switch completed an enormous 58 MW additional phase to their data center in Tseung Kwan O, with a low 1.3 Head of Research
PUE available across the facility. The data center now offers over 100 MW of power to clients and is situated close to cable Hong Kong
landing stations. +852 2956 7021
[email protected]
• Rumors swirled as the second quarter began that PCCW will be selling the data center portion of the company, largely
centerd in Hong Kong. Media reports indicated that the platform could sell for HK$7.8 billion, with seven of the nine Kevin Imboden
operating facilities situated locally along with one each in Guangzhou and Malaysia. Director of Research
Global Data Center Advisory Group
• Equinix announced that their Network Edge product will be coming to Hong Kong in 2021 alongside three other +1 408 436 3622
international locations. Network Edge allows for virtual network services for quick deployment and scalability, with no [email protected]
further hardware needed. Equinix also announced the expansion of Equinix Metal in Hong Kong and seven other cities,
offering additional Infrastructure-as-a-Service (IaaS) options, and an additional phase at HK1 is underway. GLOBAL DATA CENTER ADVISORY GROUP
Cushman & Wakefield’s Data Center Advisory Group
• GDS had an exciting end to 2020, with a secondary listing on the Hong Kong Stock Exchange that provided HK$14 billion
is a global team of elite professionals delivering
in expansion capital in new markets. The company confirmed an anchor tenant at their upcoming HK1 data center, planned specialized real estate solutions for mission critical
for launch in the third quarter of 2022. users, owners, and environments. With scalability,
reliability, and security as a driving force, our highly
knowledgeable and responsive professionals guide
clients to make effective financial decisions. Our
Construction Update expertise ranges includes colocation facilities, control
centers, greenfields, powered shell, and trading floors.
OPERATOR LOCATION PROJECT STAGE / EST. DELIVERY
We lend additional value through our understanding of
CITIC Kwai Chung CTT (Phase III B) Under Construction / Q2 2021 global dynamics and their impact on local markets.
Equinix Tsuen Wan HK1 (Phase 13A) Under Construction / Q3 2021 cushmanwakefield.com
GDS Kwai Chung HK1 Under Construction / Q3 2022
Tsuen Wan TWTL 428 Under Construction / Q4 2022
SUNeVision
Tseung Kwan O TKOTL Under Construction / Q4 2022
Mapletree Investments Fanling Sheung Shui Under Construction / Q4 2023

Recent Hong Kong Land Sales

PROPERTY SALE DATE LOCATION PRICE (HKD MILLION) UNIT PRICE (HKD PSF, GFA) PURCHASER
Mapletree
On Lok Mun St Jan-21 Fanling 812.94 3,750
Investments ©2021 Cushman & Wakefield. All rights reserved. The information
contained within this report is gathered from multiple sources
believed to be reliable. The information may contain errors or
omissions and is presented without any warranty or representations
as to its accuracy.
DATA CENTRE UPDATE

SINGAPORE
SPRING 2021

Market Overview
Key Indicators Connectivity and emphasis on the acquisition of renewables have been recent focuses in the Singapore data centre market,
with several major cloud services increasingly competing for local and regional deployments. With the lack of current and
future capacity available, quality of peering and/or cloud onramp opportunities suggest that new deployments for the time being
Under Construction will be relatively smaller as large-scale development scales in Kuala Lumpur and Jakarta. While previously not under serious
consideration as replacements for Singapore, new regional cables coming online particularly in Jakarta are causing this up-
173 MW and-coming city to gain interest for larger-scale needs. As the unofficial moratorium continues into 2021, just Equinix and STT
are working on new phases alongside the major Facebook project, still slated for completion in 2022. AirTrunk and Digital
Realty have both recently completed their own (previously approved) large builds, with considerable success in pre-leasing in
both buildings. No further sites have transacted for data centre development since the previous update of this report, and the
local investment market remains quiet.
Speculation as to the end of the moratorium remains just that, though there are signs that alternative energy uses are being
considered. The Energy Market Authority has issued a request for proposal to import 100 MW from Malaysia beginning in
MORE INFORMATION 2022, with submissions required by June. As one of the key concerns regarding data centre development involved reducing
Xian Yang Wong the national carbon footprint, this plan may lead to other similar regional agreements. As noted elsewhere in this report, a
Head of Research variety of local research is continuing in reducing data centre energy consumption, and large users such as Amazon have
Singapore pursued their own renewable acquisitions.
Tel: +65 6232 0885
[email protected] Singaporean funds also pursued international investment strategies in both primary and secondary locations alike in recent
months. Mapletree Industrial Trust recently closed on a large data centre campus in Richmond, Virginia, for just under S$283
Kevin Imboden
Director of Research
million, suggesting interest in regional areas close to the powerhouse Northern Virginia area. Ascendas also closed on a pan-
Global Data Center Advisory Group European data centre portfolio in the first quarter, paying Digital Realty S$905 million for assets in the United Kingdom, France,
+1 408 436 3622 Netherlands, and Switzerland.
[email protected]
Ecosystem Developments
• HGC Global Communications has added another Point-of-Presence (PoP) in Singapore, signing on at the BDx data centre
GLOBAL DATA CENTER ADVISORY GROUP in Paya Lebar. HGC is now offering their bandwidth on demand services locally, offering further connectivity options for local
Cushman & Wakefield’s Data Center Advisory Group is enterprises.
a global team of elite professionals delivering
specialized real estate solutions for mission critical
• Cogent Communications signed their own agreement with BDx, with the global carrier now offering colocation, dedicated
users, owners, and environments. With scalability, access, and a variety of other services from this new location.
reliability, and security as a driving force, our highly • As noted in our previous update, Keppel Data Centres continues to spearhead research into new data centre platforms,
knowledgeable and responsive professionals guide signing an agreement with Keppel-owned City Gas to pursue the use of liquefied natural gas and hydrogen in the proposed
clients to make effective financial decisions. Our floating data centre environment. Keppel is working with a variety of partners to drive efficiency for data centres locally,
expertise ranges includes colocation facilities, control winning two local Building and Construction Authority awards at the end of 2020. Additionally, Keppel Telecommunications
centers, greenfields, powered shell, and trading floors. and Transportation secured their licensing to operate telecoms infrastructure in springtime, coinciding with the launch of the
We lend additional value through our understanding of Bifrost undersea cable in partnership with Facebook and Telin. The cable will connect Singapore to Indonesia, the
global dynamics and their impact on local markets. Philippines, Guam, and the mainland United States, with plans to begin operations in 2024.
cushmanwakefield.com • G-Core Labs followed their recent PoP announcement with the launch of their public cloud in Singapore, their first location in
Asia to offer the full product suite. G-Core offers a variety of services tied to their cloud offering, including an artificial
intelligence platform and testing options.
• Amazon announced their initial renewable energy agreement locally, agreeing to purchase 62 MW of solar power from
©2021 Cushman & Wakefield. All rights reserved. The information
contained within this report is gathered from multiple sources believed Sunseap. The modular solar project allows for flexibility and scalability, along with physical repositioning depending on land
to be reliable. The information may contain errors or omissions and is use needs. The cloud compute giant is now also offering AWS Direct Connect 100 Gbps connectivity for those with large
presented without any warranty or representations as to its accuracy.
data sets, with Singapore joining six other global locations in the United States and across Asia with this service.
DATA CENTRE UPDATE

SINGAPORE
SPRING 2021

SINGAPORE MARKET MAP ECOSYSTEM DEVELOPMENTS

• OVHcloud doubled their capacity locally early in 2021, with Singapore joining Sydney
and Mumbai as recent focal points for the cloud services provider. Singapore serves as
regional corporate headquarters for the French multinational, offering a variety of
dedicated server and connectivity options.
• Oracle Cloud will be coming to Singapore in 2021, slightly later then announced in our
last report. Oracle is already operating in Japan, South Korea, Australia, and India, with
Singapore becoming the first location across Southeast Asia.
• Iron Mountain announced a new partnership with Telia Carrier, with Singapore joining
six other international locations offering Telia IP transit services. Telia Carrier offers
67,000 kilometres of fibre across 35 countries.
• Google is teaming up with Facebook and XL Axiata for the upcoming Echo cable, due to
launch operations in 2023. Echo will connect Singapore to Indonesia, Guam, and the
small town of Eureka in California, joining the Bifrost cable along a similar route that was
referenced earlier in this report.
• FEPL is launching Project Koete, a new data centre and cable project based in Australia
that will connect several rural areas on the northern and western coasts of the country to
Jakarta, Singapore, and Kuantan in Malaysia. Expected for completion in 2023, the cable
will stretch 8,000 kilometres across the region.

New cloud and connectivity options abound in Singapore,

as development remains postponed for all but a small
number of new projects.

Construction Update

OPERATOR LOCATION GFA SIZE (SQM) TOTAL POWER (MW) STAGE / EST. DELIVERY

SG5 (Phase 1) 1,710 3 (est) Under Construction / Q2 2021

Equinix SG1 (Phase 15) 879 1 (est) Under Construction / Q3 2021
SG5 (Phase 2) 2,000 4 (est) Under Construction / Q4 2021
Facebook Tanjong Kling 170,000 150 Under Construction / Q2 2022
STT Defu 3 14,500 15 Under Construction / Q3 2022
DATA CENTRE UPDATE

SYDNEY
FIRST HALF 2021

Key Indicators Market Overview

Sydney continues to maintain impressive pace of late, with several government agencies joining major cloud services as
Under top-level tenants for local operators. As referenced throughout this update, local clients continue to demand ever-greater
Construction sophistication in their IT strategies, with several pursuing true hybrid frameworks encompassing multiple major cloud
services. Large space remains in demand, with seven additional projects currently under construction, including a 36 MW
new build by DCI due by the end of 2022. AirTrunk recently completed the first phase of their SYD2 campus, with plans
79 MW for 110 MW at full buildout. The additional regional Microsoft capacity referenced in our last report will have at least a
partially self-performed aspect, with the cloud giant acquiring three sites of late in the suburbs of Seven Hills, Blacktown,
and Lane Cove for data centre development. Major cloud services remain bullish on Sydney, with Amazon adding further
services and OVH adding a second location. The investment market showed life at the end of the year, with Charter Hall
acquiring a Sydney office and data centre tower in a sale-and-leaseback deal with Telstra. Priced at A$281.5 million, the
building will remain home to Telstra through 2030 and is an enticing development site thereafter.
MORE INFORMATION Land remains available for data centre development, particularly throughout the Greater Western Sydney suburbs where
John Sears much of the current action is transpiring. While many other regional destinations have struggled of late with power
Head of Research, availability or geopolitical concerns, the ability to simply secure considerable land and power places Sydney in good
Australia and New Zealand stead for continued growth. Secondary and tertiary markets across the country have continued their own positive notes of
Tel + 61 2 8243 9973 late, which will in turn increase regional connectivity. The recently announced Project Koete will create three data centres
[email protected] in Perth, Darwin, and Dampier, along with an 8,000-kilometre undersea cable linking these areas to Indonesia,
Kevin Imboden Singapore, and Malaysia. Long underserved, the additional capacity will provide these areas with a new level of high-
Director of Research speed access. A continued positive outlook for the remainder of 2021 and throughout the next year for Sydney.
Global Data Center Advisory Group
+1 408 436 3622
[email protected] Ecosystem Developments
• The Australian Securities and Investments Commission (ASIC) has signed a four-year deal with Canberra Data
Centres (CDC), with the secondary data centre for the regulator moving to Eastern Creek. ASIC is planning for the move
GLOBAL DATA CENTER ADVISORY GROUP to be complete by mid-2022. The Department of Home Affairs followed on with a similar five-year deal with CDC, with
Cushman & Wakefield’s Data Center Advisory Group is plans to join ASIC at roughly the same time.
a global team of elite professionals delivering
specialized real estate solutions for mission critical • After considering a move to another provider, the Department of Defence has elected to stay at Global Switch in Ultimo,
users, owners, and environments. With scalability, extending their lease through 2025. After evaluating possible cost and effort involved in the move, the Department found
reliability, and security as a driving force, our highly the benefits of remaining exceeded those of a relocation.
knowledgeable and responsive professionals guide
clients to make effective financial decisions. Our
• Vocus added its twelfth fibre cable across Sydney Harbour in March, responding to the need for greater bandwidth from
expertise ranges includes colocation facilities, control
a mix of enterprise and government clientele. The new addition connects Rozelle to Pyrmont, and onward to the national
centers, greenfields, powered shell, and trading floors. network that ultimately links 144 data centres.
We lend additional value through our understanding of • The New South Wales Police have elected to move to the cloud, signing a deal with Microsoft Azure as the force
global dynamics and their impact on local markets. migrates from its current on-premises solution. While NSW Police plans to use hybrid IT as needed (a vendor-based AWS
cushmanwakefield.com Outpost solution may also be utilized for some applications), most core solutions will be Azure-based.
• Macquarie Data Centres signed a 10 MW pre-lease for their IntelliCentre 3 East facility, leaving just 1 MW available for
future tenants. Another 7 MW is possible for IC3E, as is a prospective second building to form a campus.
©2021 Cushman & Wakefield. All rights reserved. The information • An as-yet-unnamed new undersea cable has been proposed, linking Sydney and Melbourne to the small city of Invercargill
contained within this report is gathered from multiple sources believed in New Zealand. The project is part of the new Datagrid project, with plans for a 60 MW data centre in the adjoining New
to be reliable. The information may contain errors or omissions and is
presented without any warranty or representations as to its accuracy. Zealand town of Makarewa. The cable and associated data centre have planned operations beginning in 2023.
DATA CENTRE UPDATE

SYDNEY
FIRST HALF 2021

Ecosystem Developments
• Hostopia announced a major consolidation of their five data centres in both Melbourne and Sydney, choosing to
move into Equinix SY5 and ME2 as they improve efficiency and service delivery.
Nearly 80 MW remains under
• OVHcloud has added a second data centre locally in Sydney, joining Singapore and Mumbai as recent expansion construction throughout Sydney,
markets for the cloud services provider. The company is now offering a variety of dedicated server and connectivity with major cloud services such
options across the greater APAC region.
as Microsoft increasing their
• Amazon Web Services (AWS) rolled out AWS Direct Connect 100Gbps, explicitly targeting those users in need of local commitment.
higher bandwidth for large-scale data sets. The new service is available locally at Equinix at data centres SY1
through SY4 and at Global Switch.

Recent Land Sales

PROPERTY SIZE (SQM) SALE DATE SALE PRICE (A$) BUYER
57 Station Rd, Seven Hills 25,700 Apr-21 $18,920,000 Microsoft
6 Honeman Close, Blacktown 50,000 Dec-20 $70,400,000 Microsoft
706 Mowbray Rd, Lane Cove 17,000 Dec-20 $63,000,000 Microsoft
327 Burley Rd, Horsley Park 86,000 Oct-20 $84,300,000 Digital Realty

Recent Property Sales

PROPERTY SIZE (SQM) SALE DATE SALE PRICE (A$) BUYER SELLER
78 Pitt St, Sydney 23,472 Dec-20 $281,500,000 Charter Hall Long WALE REIT Telstra

Construction Update
OPERATOR PROJECT SIZE (SQM) POWER (MW) STAGE / EST. DELIVERY

Macquarie Intellicentre 3 East 13,400 11 Under Construction / Q2 2021

Alpha DC Fund KDC Sydney 1 5,300 7 (est) Under Construction / Q2 2021
Equinix SY5 Phase 2 2,894 6 (est) Under Construction / Q3 2021
Digital Realty Erskine Park III 6,279 7.2 Under Construction / Q4 2021
NextDC S3 20,000 12 Under Construction / Q2 2022
DCI SYD02 35,000 36 Under Construction / Q4 2022
AirTrunk SYD1 (Phase 2) 12,000 (est) 40 In Planning
DATA CENTRE UPDATE

TOKYO
SPRING 2021

Market Overview
As noted in the last edition of this report, Tokyo is rapidly growing into a hyperscale hub throughout East Asia. As
Under Construction Colt and Equinix each completed construction on new campuses late in 2020, Equinix immediately began work
76 MW on their second phase thanks to strong leasing and advance commitments from local clientele. Many clients both
local and international are looking to the expanding neighborhood in Inzai to serve as their national or regional
entry point, with secondary deployments following thereafter in Osaka. The investment market also enjoyed a
rare large transaction at the end of the year, with AXA Investment Managers acquiring a SoftBank data centre for
Large-scale development ¥22 billion. This strong pricing indicates the desire for operational assets in Tokyo with top level tenancy, and
continues in Inzai with could drive further investment in the coming year as large funds form data centre investment strategies. With the
established REITs adding new connectivity options and the upcoming AirTrunk campus launching its first phase
robust interest in local before year-end, Tokyo continued to move from strength to strength over the past several months and looks set
expansion. for continued growth over the next year.

Ecosystem Developments
• Mitsubishi Corporation and Digital Realty recently signed an agreement with ARTERIA Networks that
MORE INFORMATION provides for increased connectivity at the upcoming NRT10 campus. ARTERIA is upgrading their fibre network
Kevin Imboden across Inzai, with a dedicated connection at NRT10 linking to regional cable landing stations. The first phase of
Director of Research NRT10 is planned to go live in August.
Global Data Center Advisory Group
+1 408 436 3622 • Equinix announced that their Network Edge product will be coming to Tokyo in 2021 alongside three other
[email protected] international locations. Network Edge allows for virtual network services for quick deployment and scalability,
Hideaki Suzuki with no further hardware needed. Equinix also announced the expansion of Equinix Metal in Tokyo and seven
Director of Research, Japan other cities, offering additional Infrastructure-as-a-Service (IaaS) options. The global REIT and partner GIC Real
Tel: +81 3 3596 7804 Estate are additionally constructing another phase at TY12x, coming online early in 2022.
[email protected]
• Amazon Web Services (AWS) rolled out AWS Direct Connect 100Gbps, explicitly targeting those users in
Yuko Kamei need of higher bandwidth for large-scale data sets. Tokyo is one of the first markets to launch this service,
Research & Consulting, Japan
available at @Tokyo CC1 and Equinix TY2, TY6, TY7, and TY8.
GLOBAL DATA CENTER ADVISORY GROUP
Cushman & Wakefield’s Data Center Advisory Group is a global Recent Property Sales
team of elite professionals delivering specialized real estate
solutions for mission critical users, owners, and environments. With PROPERTY SIZE (SQM) SALE DATE SALE PRICE (¥) BUYER SELLER
scalability, reliability, and security as a driving force, our highly
knowledgeable and responsive professionals guide clients to make 3-4-4 Shinsuna (Koto Ward) 20,000 Dec-20 ¥22,000,000,000 AXA Investment Managers SoftBank
effective financial decisions. Our expertise ranges includes
colocation facilities, control centers, greenfields, powered shell, and
trading floors. We lend additional value through our understanding Major Construction Update
of global dynamics and their impact on local markets.
cushmanwakefield.com OPERATOR SITE SIZE (SQM) POWER (MW) STAGE / EST. DELIVERY
MC Digital Realty NRT10 37,850 6 Under Construction / Q3 2021
©2021 Cushman & Wakefield. All rights reserved. The information contained
within this report is gathered from multiple sources believed to be reliable. AirTrunk TOK1 56,000 60 Under Construction / Q4 2021
The information may contain errors or omissions and is presented without Equinix TY12x (Phase II) 8,000 (est) 10 Under Construction / Q1 2022
any warranty or representations as to its accuracy.