EUROPEAN DATA CENTRE MARKET UPDATE

Mitul Patel – Head of EMEA Data Centre Research

CBRE Data Centre Solutions

2

THE DUBLIN MARKET

AGENDA

1. THE MARKETS

2. HYPERSCALERS

3. HOT MARKETS

4. PREDICTIONS

3

THE MARKETS

4

WHAT MAKES A MARKET?

The

Market

Self-build

Build

to

Suit

Multi-Tenant

Colocation

5

MAJOR MARKETS - CHARACTERISTICS

6

MULTI-TENANT COLOCATION

Amsterdam Frankfurt London Paris

✓ ✓ ✓ ✓

✓ ✓ ✓

✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓

✓ ✓ ✓

✓ ✓

Total 7 8 7 5

Dublin

✓

✓

✓

✓

✓

5

Colocation providers present in more than one major European market

7

MAJOR EUROPEAN MARKET SIZES

437

0

50

100

150

200

250

300

350

400

450

500

Amsterdam Frankfurt London Paris Dublin

Market Sizes (MW)

Multi-Tenant Colocation Build to Suit Hyperscale Self-Build

240 240

156

237

8

FLAP MARKET GROWTH

0

100

200

300

400

500

600

700

800

London Frankfurt Amsterdam Paris

MW

FLAP Markets - Projected Growth

2017 2018 2019 Unknown Timing / Longer-Term

9

FLAP MARKET TAKE-UP

0

20

40

60

80

100

120

140

160

180

2010 2011 2012 2013 2014 2015 2016 2017 2018Projection

MW

FLAP Markets – Annual Take-Up

Q3-Q4 projection Paris London Frankfurt Amsterdam

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OPPORTUNITIES & THREATS

OPPORTUNITIES

US “Tech”

Companies

Chinese

Occupiers

Automation

Site

Availability

Power

Security

Competition

THREATS

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KEY TENDS

HYPERSCALE CLOUD DEMAND M & A / INVESTMENT

CONSTRUCTION / BUILD-TO-SUIT BREXIT

12

HYPERSCALERS

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CLOUD SERVICE PROVIDERS – GLOBAL PRESENCE

Source: Atomia

•Amazon— 4 upcoming locations: 1 in North America, 2

in Europe, 1 in Asia.

•Microsoft— 8 upcoming locations: 4 in North America, 2

in Europe, 2 in Asia.

•Google— 8 upcoming locations: 1 in North America, 1 in

South America, 3 in Europe, 2 in Asia, 1 in Oceania.

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CLOUD SERVICE PROVIDERS – GLOBAL PRESENCE

Source: Atomia

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WHERE’S IT ALL GOING?

Colo and Build-to-Suit

Small Scale

Speed to Market

Multiple Options

Provisioned Site

Options

Low Rental

OpEx

Self Build

16

HOT MARKETS

17

MILAN

Colo Market: 30MW

Country Population: 60mn

6MW

18

MADRID

Colo Market: 25MW

Country Population: 47mn

Acquired by Schneider

Therefore…..

NEW OPERATOR 1

NEW OPERATOR 2

NEW OPERATOR 3

HYPERSCALERS

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NORDICS

Colo Market: 40MW

Combined Population: 27mn

70MW

40MW

5 markets in 1

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EMERGING APAC MARKETS

Mumbai & Chennai

South Korea

South East Asia

Google’s India Cloud Data Center

To Open Before The End Of 2017

Microsoft Opens South

Korea Azure Data Centres

SuperNAP International opens

Chonburi, Thailand data center

The Malaysian Government has already

earmarked Iskandar for the establishment of a

second hub for data center parks in the country.

“Indonesia gets serious

about data centers”

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PREDICTIONS

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2017 PREDICTIONS

Prediction Result Score

Over 100MW of take-up

Poised to be higher -closer to 120MW ✓

205MW of new supply

Looking at approx. 200MW ✓

New US providers

CyrusOne ✓XParis to

"take-off"Slow 2017 for Paris

to-date X

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2018 PREDICTIONS

Prediction Result Score

New-Norm for take-up will continue

First 'herd' of Chinese cloud / telco / internet

Companies

Continued heightened M&A activity

“Edge” won’t become more of a reality

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THANK YOU & QUESTIONS