CHARGED UP' WAVE THE NEXT - DATA CENTRES - RICS

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CHARGED UP' WAVE THE NEXT - DATA CENTRES - RICS
D ATA   C E N T R E S

     THE NEXT
‘CHARGED UP’ WAVE

   CBRE RESEARCH |2020

          by
CHARGED UP' WAVE THE NEXT - DATA CENTRES - RICS
02                          12

CONTENTS
           INTERNET OF THINGS (IOT),   RISING INVESTOR
           AUTOMATION AND BIG          INTEREST TOWARDS THE
           DATA FUELING THE DATA       DC SEGMENT
           CENTRE (DC) SEGMENT

           04                          16
           DC EVOLUTION                THE FUTURE OF THE DC
           IN INDIA                    SEGMENT IN INDIA AFTER
                                       THE COVID-19 OUTBREAK

           06                          20
           REGULATORY PUSH TO          DEFINITIONS
           PROPEL THE DC SEGMENT
           IN INDIA

           08
           TOP DC DESTINATIONS
           IN INDIA: MUMBAI AND
           CHENNAI

                                                                © 2020 CBRE, Inc.   |1
CHARGED UP' WAVE THE NEXT - DATA CENTRES - RICS
The adoption of smart technology is accelerating globally, with IoT-powered devices becoming a
                                                prerequisite to make our everyday tasks easier and faster. By 2025, an average person is likely to
                                                interact with a smart device nearly 4,800 times a day1. This projection is roughly triple of where we
                                                stand today. Considering the COVID-19 pandemic, this projection is likely to be realized sooner
                                                than later. The rise in the number and usage of smart devices, coupled with increasing amounts
                                                of data consumption, has led to a surge in demand for DCs. Preference towards third-party data
                                                storage has thus been augmented in order to keep pace with the growing need to further process,
                                                store and analyse data.

                                                1.1. India: One of the Fastest Digitising
                                                Economies
                                                Rapid digitisation, a widening customer base, improving tech infrastructure and increasing
                                                internet penetration have given a strong impetus to the DC industry in India (Figure 1.1.).
                                                McKinsey Global Institute’s (MGI) country Digital Adoption Index between 2014 and 2017
                                                pointed out that despite its low base, India is the second fastest digitizing economy among the 17
                                                leading economies of the world, including Brazil, China, Indonesia and the US.

                                                FIGURE 1.1. INDIA’S DIGITAL FOOTPRINT

  INTERNET OF THINGS
  (IOT), AUTOMATION
  AND BIG DATA FUELING                            1.26 billion
                                                   people with
                                                                                 697 million
                                                                                 total internet
                                                                                                               500 million
                                                                                                               smart phone
                                                                                                                                             11 GB data
                                                                                                                                            consumption per
                                                                                                                                                                              USD 0.09
                                                                                                                                                                            average cost of

  THE DATA CENTRE (DC)                            unique digital                  subscribers                     users                     smart phone per                 1GB of mobile
                                                     identity                                                                                   month                            data
                                                Source: Unique Identification Authority of India (UIDAI), 2020; Telecom Regulatory Authority of India (TRAI), 2020; Ernst & Young’s report ‘Shaping

  SEGMENT                                       the New Normal’, 2020; techARC’s report ‘techINSIGHT’, 2020; cable.co.uk data, 2020; CBRE Research, Q3 2020

                                                The above numbers are expected to rise significantly in the coming years due to increased
                                                adoption of converged / hyper-converged infrastructure platforms and government initiatives to
                                                develop the digital economy. Subsequently, the growing importance of Big Data, Industry 4.02, 5G and
                                                cloud computing has led to DCs taking on an increasingly prominent role in recent times.

                                                1.2. Data Consumption After the COVID-19
                                                Outbreak in India
                                                The role of DCs got further widened by the surge in data storage and processing requirements
                                                resulting from increased levels of remote working during the pandemic period. According to the
                                                Department of Telecom (DoT) in April 2020, India’s internet consumption rose by 13% since
                                                the nationwide lockdown in March. The rise reflected the growing consumption of streaming
                                                content and increase in work from home, which led to higher data demand from residential areas
                                                as compared to commercial centres, according to the DoT.
                                                Similarly, while India's data usage per smartphone has grown by more than 20% over the last two
                                                years, averaging at about 11 GB / month, it has seen a further rise of about 20% - 25% within a
                                                period of two months since the lockdown3.

                                                1. International Data Corporation (IDC)’s report ‘Data-2025’, 2017
                                                2. Industry 4.0 refers to a new phase in the Industrial Revolution that focuses majorly on interconnectivity, automation, machine learning,
                                                and real-time data.
                                                3. Ernst & Young’s report ‘Shaping the New Normal’, 2020

2 | DATA CENTRES – THE NEXT ‘CHARGED UP’ WAVE                                                                                                                                             © 2020 CBRE, Inc.   |3
CHARGED UP' WAVE THE NEXT - DATA CENTRES - RICS
The evolution of DCs in India can be traced back to 2007: the era of the dotcom boom, which
                                                resulted in a growing need for DC operators (Figure 2.1.).

                                                FIGURE 2.1. THE FOUR STAGES OF DC EVOLUTION IN INDIA

                                                                         S T A G E                                 S T A G E

                                                                             1
                                                                         (PRE-2007)
                                                                                                                       2
                                                                                                                 (2007 – 2012)

                                                                                                          OUTSOURCING DATA
                                                                                                           STORAGE SPACES
                                                                  DOT-COM BOOM

  DC EVOLUTION IN
                                                                                                    Data storage requirements continued to
                                                           Corporates stored data in in-house       grow exponentially; corporates moved to
                                                                 servers / captive DCs              outsourcing storage spaces in colocation
                                                                                                       DCs to focus on their core business
                                                          DC growth for captive facilities at the

  INDIA
                                                         highest level in the wake of the dot-com     Broadband network prices continued
                                                                  boom during 2005-06               to erode, resulting in exponential growth
                                                                                                                in data production
                                                                                                        Third-party DCs expanded their
                                                                                                       capacities across India to meet the
                                                                                                              growing demand for
                                                                                                                   data storage

                                                                         S T A G E                                 S T A G E

                                                                             3
                                                                       (2012 – 2016)
                                                                                                                       4
                                                                                                                (2016 ONWARDS)

                                                               CLOUD AWARENESS                      EMERGENCE OF HYPERSCALE,
                                                                 PICKED UP PACE                        HYPER-CONVERGED
                                                           Foreign cloud players entered India        INFRASTRUCTURE (HCI)
                                                            and conducted ‘cloud computing’            AND MULTI-CLOUDS
                                                                  awareness campaigns                  The data requirements of occupiers
                                                            Established colocation DC players        started growing, resulting in operators
                                                           started improving cloud capabilities            constructing hyperscale DCs

                                                            Occupiers began using colocation          Occupiers are also now increasingly
                                                           services for critical applications and   using hybrid cloud (colocation + private /
                                                                cloud for R&D, testing and              public cloud), HCI and multi-cloud
                                                                development requirements                           deployments

                                                Source: CBRE Research, Q3 2020

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Over the past few years, the government has launched several initiatives to promote data
                                                localisation. These include the National e-Governance Plan (NeGP) (2006), Disaster Recovery (DR)
                                                / Near DR requirements (2009), GI Cloud Initiative / MeghRaj (2013), Insolvency & Bankruptcy
                                                Code (IBC) (2016) and Storage of Payment System Data (2018). Moreover, the finalisation of the
                                                Draft E-commerce Policy (2019), Draft Data Protection Bill (2019) and the proposed policy on DC
                                                parks (2020) is likely to further boost demand for data storage across the country (Table 3.1.).

                                                TABLE 3.1. A SNAPSHOT OF KEY DC-ORIENTED DRAFT POLICIES PROPOSED / IMPLEMENTED
                                                DURING THE PAST TWO YEARS IN INDIA:

  REGULATORY PUSH                                Policy                              Description

                                                                                      Considering the growth of digital payments, the Reserve Bank

  TO PROPEL THE                                   Storage of Payments System
                                                  Data, 2018
                                                                                      of India (RBI) has directed all payments providers to store data
                                                                                      in India to ensure better monitoring and unfettered supervisory
                                                                                      access.

  DC SEGMENT IN INDIA                                                                 A detailed policy framework has been proposed which is likely
                                                                                      to look into the key issues related to the e-commerce sector
                                                                                      including processing of data, infrastructure, marketplace,
                                                  Draft E-commerce Policy, 2019
                                                                                      regulations, digital economy, export promotion etc. In addition,
                                                                                      as per recent articles, the new revised draft also calls for setting
                                                                                      up a regulator for this sector.

                                                                                      The bill prioritises local data storage, which is expected to
                                                  Personal Data Protection Bill,      enhance DC demand. Corporates are already demanding
                                                  2019                                large-scale spaces for data storage in anticipation of the
                                                                                      clearance of the bill.

                                                                                      In order to improve the infrastructure and back-end value
                                                  Proposed DC Park Policy, 2020       chain, the government has recently proposed a DC park policy
                                                                                      to enable private sector to build DC parks across the country.

                                                Source: CBRE Research, Q3 2020

                                                Among all Indian states, Maharashtra, Telangana and Tamil Nadu were the first movers to release
                                                state-specific incentives for the DC segment. Several other states have now started offering / plan
                                                to offer incentives to DCs over the coming quarters.

6 | DATA CENTRES – THE NEXT ‘CHARGED UP’ WAVE                                                                                                         © 2020 CBRE, Inc.   |7
CHARGED UP' WAVE THE NEXT - DATA CENTRES - RICS
Recent years have seen the emergence of important new locations for DCs in India, especially
                                                Mumbai and Chennai as they are home to multiple undersea cable landing stations.

                                                4.1. Mumbai
                                                Mumbai is India’s largest DC colocation market, with a total capacity of 215 MW (as of Q1 2020).
                                                Outsourcing demand has continued to grow, driven by cloud players and technology firms looking
                                                to cater to the high number of large financial institutions and other corporates headquartered in
                                                the city. The nature of financial services coupled with the central bank’s regulations have resulted
                                                in a plethora of BFSI firms housing their DCs in the country’s financial capital.

                                                In recent years, Mumbai has witnessed high levels of new supply, on the back of large global
                                                PE investor interest. The city also boasts of a strong project pipeline, with many established
                                                international operators looking to expand and enter the market.

                                                FIGURE 4.1. TOTAL DC CAPACITY IN MUMBAI BY STATUS* (IN MW)
                                                                                                                MUMBAI
                                                                              215.0MW

  TOP DC DESTINATIONS
  IN INDIA: MUMBAI AND                                                                                                                            100.0MW

  CHENNAI
                                                                               Q1 2020                                                           Upcoming Supply
                                                                                                                                                 (Q2 2020-2022)
                                                                             Occupied Fitted Capacity                       Fitted Vacancy                        Shell Capacity

                                                Source: CBRE Data Centre Solutions, Q3 2020
                                                *Note: Only carrier neutral colocation neutral facilities are included. Chart Scale: Each block stands for 25MW

                                                4.2. Chennai
                                                International cloud DC players are primarily attracted to Chennai, owing to its coastal location,
                                                which provides substantial cost arbitrage through the use of direct submarine lines. State
                                                subsidies for DC development, coupled with Chennai being an obvious secondary or disaster
                                                recovery site, has further boosted DC activity in the city. DC demand has been recently increasing
                                                owing to the strong presence of domestic tech firms, resulting in the city being perceived as a
                                                primary data storage location as well.
                                                FIGURE 4.2. TOTAL DC CAPACITY IN CHENNAI BY STATUS* (IN MW)
                                                                                                               CHENNAI
                                                                              68.0MW
                                                                                                                                                    40.0MW

                                                                               Q1 2020                                                          Upcoming Supply
                                                                                                                                                (Q2 2020-2022)
                                                                             Occupied Fitted Capacity                       Fitted Vacancy                        Shell Capacity
                                                Source: CBRE Data Centre Solutions, Q3 2020
                                                *Note: Only carrier neutral colocation neutral facilities are included. Chart Scale: Each block stands for 25MW

                                                DC activities are also gradually picking up in other major cities such as Delhi-NCR, Hyderabad,
                                                Pune, Bangalore and Kolkata with various players planning to increase their DC footprint in these
                                                regions, especially in the post-COVID environment.

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4.3. DC Rentals: India vs APAC
                     Given that Mumbai and Chennai are at a nascent stage in terms of DC development, rentals
                     range considerably in both the markets (Figure 4.3.) 4.

                     FIGURE 4.3. DC PRICING IN PROMINENT APAC MARKETS: A COMPARISON

                    Pricing (USD per kw per month)

                                                 INDIA                           HONG KONG

                                      HYPERSCALE CLOUD (above 1MW)             HYPERSCALE CLOUD (above 1MW)

                                     USD115-USD140                             USD170-USD200

                                      WHOLESALE COLOCATION (500kW)             WHOLESALE COLOCATION (500kW)

                                     USD150-USD190                             USD230-USD270

                                      RETAIL COLOCATION (250kW)                RETAIL COLOCATION (250kW)

                                     USD200-USD230                             USD300-USD350

                                                 TOKYO                            SINGAPORE

                                      HYPERSCALE CLOUD (above 1MW)             HYPERSCALE CLOUD (above 1MW)

                                     USD128-USD157                             USD138-USD158

                                      WHOLESALE COLOCATION (500kW)             WHOLESALE COLOCATION (500kW)

                                     USD179-USD218                             USD175-USD255

                                      RETAIL COLOCATION (250kW)                RETAIL COLOCATION (250kW)

                                     USD227-USD278                             USD230-USD280

               4. CBRE’s, ‘Asia Pacific Data Centre Trends’, H1 2020

          Source: CBRE Data Centre Solutions, Q3 2020

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CHARGED UP' WAVE THE NEXT - DATA CENTRES - RICS
5.1. The global DC investment landscape
                                                 Along with rising end-user demand, CBRE expects the DC sector to benefit from investors’
                                                 emerging preference for assets providing stable income streams. Globally, the COVID-19 outbreak
                                                 has led to a shift in investor preference towards DCs. For instance, DCs were amongst the top
                                                 performing assets in the US REIT market, providing total returns of around 19.3% in the first five
                                                 months of 20205.

                                                 5.2. APAC DC investment landscape
                                                 CBRE’s 2020 Asia Pacific Investor Intentions Survey found that when it comes to preferred
                                                 alternate segments, about 30% of respondents across the region are considering investing in
                                                 DCs this year, a substantial increase from 18% recorded in 2019 (Figure 5.1.).

                                                 FIGURE 5.1. APAC’S TOP FIVE PREFERRED ALTERNATIVE SECTORS FOR INVESTMENT

                                                                                                             2018            2019             2020
                                                                            35%

   RISING
                                                                            30%

                                                                            25%

                                                          % of respondent
   INVESTOR INTEREST                                                        20%

   TOWARDS THE
                                                                            15%

                                                                            10%

   DC SEGMENT                                                               5%

                                                                            0%
                                                                                  Data Centre     Real Estate               Student             Retirement       Healthcare
                                                                                                     Debt                    Living                Living
                                                 Source: Asia Pacific Investor Intentions Survey, CBRE Research, Q1 2020

                                                 In the past few years, direct investment in DCs was limited across the APAC region due to lack of
                                                 investable stock and relatively tight regulatory restrictions. DCs accounted for just 1.5% of the
                                                 total APAC industrial real estate investment volume between 2015 and 2019. However, investor
                                                 inclination towards the segment is expected to further increase post the COVID-19 outbreak, with
                                                 various initiatives being evaluated across countries to ensure a well-established and transparent
                                                 data regulatory framework and competitive transaction practices. CBRE’s 2020 Asia Pacific
                                                 Investor Intentions Survey found that 50% of investors polled after the Wuhan quarantine on 23
                                                 January 2020 expressed interest in DCs, compared to 27% prior to the outbreak6.

                                                 5. REIT.com (https://www.reit.com/what-reit/reit-sectors/data-center-reits), Data as of 31 May 20202.
                                                 6. Asia Pacific Investor Intention Survey, CBRE Research, March 2020. The survey was conducted between 16 December 2019 and 16 February 2020.

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5.3. India’s DC investment landscape
          The Indian DC segment has also been attracting investments from various investors / operators
          in 2020, key instances of which include:

          TABLE 5.1. KEY RECENT DEALS IN DC SEGMENT IN INDIA

                                                         Investment                                     Investment
             Period              Investor                                         Details
                                                       value (USD mn)                                      Route

                                                                            Plans to double the
               Jan                                                                                      Built to suit
                                    NTT                       1,500      company’s DC footprint in
              2020                                                                                         (BTS)
                                                                                   India.

                                                                          Plans to set up two DCs
                                                                         in Telangana. The centres
                                  A large                                 are likely to come up in
               Feb
                               e-commerce                     1,600        Hyderabad’s Pharma               BTS
              2020
                                  player                                  City Industrial Area and
                                                                        Chandenvelly Industrial Area
                                                                               in three phases.

                                                                        Plans to purchase more than
              May             A global tech                              2.5% stake in Jio Platforms
                                                              2,000                                     Partnership
              2020               player                                 to leverage Microsoft Azure’s
                                                                                cloud services.

                                                                             Plans to invest in
               Jul            A global tech
                                                             10,000     accelerating digital services     Equity
              2020               player
                                                                                  in India.

                                                                        Signed MoU with the Tamil
               Jul                                                      Nadu government to set up
                               Adani Group                      306                                     Partnership
              2020                                                      a DC in SIPCOT7 IT Park in
                                                                                Chennai.

                                                                         Plans to set up a DC park
               Jul                  Yotta                                  on the Singaperumal-
                                                            400 - 530                                       BTS
              2020             Infrastructure                              Oragadam Highway,
                                                                                  Chennai.

                                                                        Announced the acquisition of
              Aug                                                       GPX Global Systems’ Indian
                                  Equinix                       161                                     Acquisition
              2020                                                       arm, which has two DCs in
                                                                                 Mumbai.

          Source: Media Articles; CBRE Research, Q3 2020

          As can be deduced from the Table 5.1., BTS8 , acquisition and equity investments remain the
          preferred routes into the sector in India. Investors are also likely to form partnerships9 with
          experienced operators and developers to gain exposure to the sector. This approach enables
          investors to leverage their partner’s expertise in areas such as site selection, operations and
          regulatory compliance. Other potential entry routes include co-mingled funds10.

          7. State Industries Promotion Corporation of Tamil Nadu
          8. Customized facilities for large occupiers
          9. Joint venture between various DC players
          10. Investment in portfolios containing other RE assets

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6.1. Outlook for the Indian DC segment: The
                                                 next 12-18 months
                                                        SUSTAINED POLICY IMPETUS TO SPUR DC DEMAND:
                                                        The passage of policies such as the National E-commerce Policy and Personal
                                                        Data Protection Bill would restrict cross-border flow of data and impose
                                                        tough penalties on data breach, thereby boosting DC demand in India. More
                                                        importantly, the proposal to give DCs the coveted ‘infrastructure status’ would
                                                        place them high on the global investor radar.

                                                        Moreover, large-scale nationwide initiatives such as ‘Make in India‘, ‘Digital India’
                                                        and Smart City Mission’ are expected to propel the manufacturing sector, and
                                                        the promotion of tech resulting from these drivers is likely to further augment
                                                        DC demand. All three initiatives involve a higher scale of R&D via increased
                                                        use of tech such as AI, IoT, cloud computing, Big Data and machine learning.
                                                        These initiatives, coupled with the Budget announcements in February 2020, are
                                                        expected to further encourage private sector participation in the DC segment and
                                                        pave the way for additional institutional investment in the coming quarters. Once

   THE FUTURE OF                                        finalised, we also expect these data localisation mandates to strengthen the link
                                                        between office space leasing and DC demand over the coming quarters.

   THE DC SEGMENT                                       TRANSITION FROM CAPTIVE TO COLOCATION / CLOUD DCs:

   IN INDIA AFTER THE                                   With regulatory requirements for data storage expected to be implemented in
                                                        the coming quarters, we anticipate that corporates would now re-evaluate their
                                                        DC portfolios in the country. It is likely that select corporates would continue to

   COVID-19 OUTBREAK                                    use ‘legacy’ business applications (not attuned to cloud) and would still demand
                                                        colocation spaces; however, newer entities and start-ups are expected to propel
                                                        the demand for cloud storage. As most app-based and over-the-top (OTT) media
                                                        services also run on the cloud, the demand for hyperscale DCs is expected to
                                                        strengthen in 2020. We anticipate that tech companies, along with corporates
                                                        from sectors such as fintech, pharmaceuticals / healthcare, education and media
                                                        & content, would boost DC demand in India.

                                                        DC CAPACITY TO GROW FASTER IN 2020:
                                                        As the requirement to work from home gets extended across various corporates due to the
                                                        pandemic, the need for data storage is likely to grow further. This is expected to lead to a
                                                        substantial addition in DC stock across the seven key cities during 2020-21, causing the
                                                        country’s DC capacity to cross 600 MW. This supply addition is likely to be dominated by
                                                        global players or leading domestic operators in the cities of Mumbai, Chennai, Hyderabad
                                                        and Delhi-NCR – underlining the superior quality of DC space that is likely to be released
                                                        in the country.

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EDGE COMPUTING TO BECOME A PART OF DC PORTFOLIOS:                                      6.2. LONG-TERM OUTLOOK: INDIAN DC
                      With tech such as AI, IoT, Machine Learning, Big Data and cloud computing
                      becoming more mainstream, DC developers are increasingly redesigning their             SEGMENT BY 2030
                      offerings with an aim to incorporate edge computing so as to process data as close
                      to their end-users as possible. We anticipate that cities such as Kolkata, Pune,                          DC DEMAND TO SURGE:
                      Gurgaon, Kochi and Jaipur, particularly, are likely to witness the completion of
                      edge DCs during 2021-23, on the back of their ability to service specific geographic                      Increased use of tech, social media and online streaming, coupled with a
                      zones.                                                                                                    burgeoning population, is likely to boost DC demand, resulting in India becoming
                                                                                                                                one of the largest DC destinations across APAC over the next decade. For instance,
                                                                                                                                it is estimated that India would be home to more than one billion internet users by
                                                                                                                                203011, further boosting consumerism, the omni-channel presence of brands and
                      FUND DEPLOYMENT TOWARDS DCs TO RISE:                                                                      the e-commerce sector in India. The adoption of 5G, particularly, would give a fillip
                      DCs were identified as one of the top five alternate investment RE options in CBRE’s                      to the OTT industry, thereby spurring the demand for edge computing.
                      APAC Investor Intentions Survey, 2020. The same survey in 2019 had highlighted
                      India as one of the top investment destinations across APAC. We, thus, expect that
                      global players would continue to take interest in investing in the country, with a                        DC STOCK IN INDIA TO QUADRUPLE:
                      focus towards backing leading operators or funding prominent developers to foray
                      into the DC segment in the coming quarters.                                                               Due to the ever-increasing demand for data storage, we expect domestic / global
                                                                                                                                operators to increase their DC footprint. This is likely to result in India’s DC stock
                                                                                                                                to grow from more than 500 MW to about 2,000 MW over the next decade. We also
                                                                                                                                anticipate that DCs (colocation, hyperscale and cloud) would come up in both tier
                                                                                                                                I and select tier II cities.

                                                                                                                                DCs CAN GO ‘REIT’ABLE:
                                                                                                                                With progressive interest of global investors, operators and developers in the Indian
                                                                                                                                DC segment, it is likely that the next decade may witness the inclusion of quality DCs
                                                                                                                                (with high occupancies) in future REIT portfolios.

                                                                                                             11. World Economic Forum, 2019

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DEFINITIONS
                                                 COLOCATION                    HYPERSCALE                       FITTED                         SHELL                         UPCOMING
                                                     DC                        COLOCATION                      CAPACITY                       CAPACITY                        SUPPLY

                      KEY TERMS

                                            A standalone building in        Typically denotes large      The amount of power             The amount of power          The amount of IT power
                      OVERVIEW             which multiple companies       power requirements (>500      available immediately in      available in a DC space that     available in a proposed
                                             share space for storing     kilowatts, kW) but end-user      fully fitted DC space        is pre-qualified for power     DC facility where CBRE is
                                              and running their IT         is specifically a cloud or                                   and telecom access and       aware of business case and
                                           equipment, akin to a multi-     large tech company with                                        amenable to DC use          operator plans to develop
                                            tenant office building or     requirements for scalable
                                               apartment complex         power, storage, and cooling

                      WHOLESALE                    RETAIL                “CARRIER” OR “NEUTRAL”               INDUSTRIAL
                     COLOCATION                  COLOCATION                 COLOCATION DCs                    FOR DC USE                     ELECTRICITY                       CAPEX

                 Typically denotes large    Typically denotes smaller    CBRE tracks only the carrier       Refers to high level       As per high voltage power        Refers to capex for a DC
                power requirements (>500   power requirements (10kW      neutral colocation markets        indicative rents (not          rates obtained by the       build to a standard market
                     kilowatts, kW)                to 500 kW)            which excludes non-carrier       specific to a site level)     local grid for Q4 2019 for     level offering, inclusive of
                                                                          neutral facilities, system     for industrial buildings      larger scale industrial and    land, shell and core, fit-out
                                                                         integrators and self-owned     occupied by DC operator       commercial end-users such        capex. CBRE numbers are
                                                                           facilities (including the              tenants                         as DCs             high level estimates based on
                                                                              hyperscale cloud)                                                                       our market understanding
                                                                                                                                                                      from project management
                                                                                                                                                                       experience; however, final
                                                                                                                                                                        capex numbers may vary
                                                                                                                                                                     according to individual sites

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FOR MORE INFORMATION ABOUT THIS REGIONAL MAJOR REPORT, PLEASE CONTACT:

RESEARCH

Abhinav Joshi                                                                              Sachi Goel
Head of Research, India                                                                    Senior General Manager
abhinav.joshi@cbre.co.in                                                                   sachi.goel@cbre.co.in

Raaj Thilak Raveendran                                                                     Karthiga Ravindran
Deputy General Manager                                                                     Assistant Manager
raajthilak.raveendran@cbre.co.in                                                           karthiga.ravindran@cbre.com

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Ram Chandnani                                                                             Prashant Goyal
Managing Director, Advisory & Transactions Services                                       Director - Data Centre Solutions, India
Ram.Chandnani@cbre.co.in                                                                  prashant.goyal@cbre.com

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