MTDC expansion roundup: Asia-Pacific key markets
August 20 2019
by Dan Thompson, Stefanie Williams, Emily Wentworth
Asia-Pacific continues to be a region of exciting multi-tenant datacenter activity, second only to Latin America with regard to its growth rate. Unlike LATAM, however, APAC is home to four of the top 10 datacenter markets in the world, with Tokyo the second-, Beijing the fourth-, Shanghai the seventh- and Hong Kong the tenth-largest in terms of operational square feet. Various factors, including
, regulations, and government initiatives continue to impact supply and demand dynamics in key datacenter markets in the APAC region, and have created different growth trajectories among these markets. We lay out the announcements, new builds and expansions that have occurred in Singapore, Beijing, Shanghai, Tokyo, Osaka, Sydney and Jakarta in the first half of 2019.
The 451 Take
Across APAC (and the world, for that matter), the various forms of cloud (hybrid, private and public) and PaaS are driving growth for datacenter providers, causing a shift in focus away from the financial services and international enterprise segments, and toward individual markets; however, a few more trends are emerging. Government initiatives like 'smart nation' are driving some growth in Singapore, in addition to cloud provider demand. Sydney and Singapore are markets with 'gateway' status that fuels growth – companies leverage Sydney to reach all of Australia and Singapore to reach Southeast Asia. In Japan, cloud growth has been a factor, and both local and international enterprises are still driving that market forward. Finally, in China, recent datacenter demand is almost exclusively linked to the rapid growth of Alibaba, Baidu, Tencent and JD.
AT&T completed the sale of its datacenter assets to Brookfield Infrastructure Partners in January. Brookfield formed a new company to manage those properties, effectively introducing a new competitor to the market. The new company, named Evoque, will be focused on retail colocation. It may take some time before the Singapore market feels the presence of the new entrant as the young provider works to gain footing in the US markets, where it also has assets; however, we expect it will be interested in making ground overseas soon enough.
Digital Realty Trust formally announced plans for its third datacenter in Singapore, to be named SIN12. The company says the facility will feature 50MW of power and encompass 370,000 (34,000 sqm) gross square feet of space. The facility will be located in Loyang, not too far from its SIN11 facility.
In January Equinix announced its SG4 datacenter. This facility will be located in the Tai Seng Industrial Estate, representing an initial investment of $85m, and is being built by Mapletree. The first phase of SG4 will provide more than 45,400 operational square feet of colocation space, with the potential to go up 132,180 operational square feet in the future.
Global Switch has opened of its latest facility â€“ this one located in the Woodlands area of Singapore. The 30MW facility features 270,000 square feet of operational space and is a partnership with China Telecom Global and Daily-Tech. China Telecom Global and Daily-Tech are the anchor tenants, taking up the first of two floors being deployed in phase one of the buildout.
STT GDC announced its seventh datacenter in the country, which is being built in Loyang. The S$350m ($252.4m) project is expected to complete in 2020, and will feature 100,000 square feet of raised floor space once fully built out. The company also announced the acquisition of the remaining 26% stake in Tata's Singapore datacenter business. The move puts STT as the 100% owner of all of its facilities in Singapore (the facilities were already branded as such).
Beyond these physical expansion announcements, NTT has also announced the launch of its Managed Microsoft Azure Stack Solution in the Singapore market. While this will likely grow the company's datacenter footprint – the service itself takes up space in the company's datacenters – the move is a reflection of NTT's continued efforts to expand its overall product set. The company launched this same product in Hong Kong at the end of 2018.
Cloud, connectivity and managed services company NetActuate is expanding its presence in Singapore. The company had previously taken space from Epsilon, and will now be expanding that presence with datacenter space from Equinix. The company will be one of the new tenants in Equinix's SG4 facility.
Beijing and Shanghai
In Beijing, 21Vianet Group opened a new facility in Q2. The company's Beijing 6 facility launched with 34,000 square feet of operational space. GDS, 21Vianet and ChinaCache are expected to bring more facilities online in the market in the second half of 2019. GDS also opened it BJ4 facility in Q2, with an initial 48,400 square feet of operational space. The company also opened an expansion of its BJ5 facility, bringing that facility to 163,000 square feet of operational space, up from 57,000.
Like in Beijing, due to much-discussed power-access restrictions, Shanghai has seen fairly little supply come online since the beginning of 2019. Unlike Beijing, much of this capacity is being dedicated to foreign-based service providers or enterprise end users themselves. However, apart from large IT service providers (including colocation firms) and online content companies, international deployments in China tend to be on the smaller side â€“ mostly retail, with some financial services demand in the midsize range. Equinix's sixth Shanghai datacenter, for instance, came online with only 2MW to start, and KDDI has leased just a portion of Shanghai Data Solutions' new 4MW facility. Other supply additions set for this year in Shanghai include new capacity from 21Vianet, several new GDS buildings (at least 12MW) and a OneAs1a expansion (5MW). Those more focused on the domestic market include a new 28MW Baodata phase and a China Unicom building in suburban Songjiang District (3MW).
Tokyo and Osaka
Alibaba announced the opening of its second datacenter facility in Japan, located in the Tokyo market. The provider has partnered with datacenter and communications provider SoftBank on both facilities through a joint venture called SB Cloud.
Broadband Tower made an announcement for its latest datacenter build, which will be located in the Otemachi district of Tokyo. The company is pitching the facility as a landing spot for the country's 5G initiatives, and has partnered with Juniper Networks to offer networking solutions to support 5G. There is no word yet on how big the facility will be once open, but the project looks to be a brownfield development, rather than a purpose-built facility.
Internet Initiative Japan has completed its 430,000-gross-square-foot datacenter facility in Shiroi, Japan, just outside the Greater Tokyo area. The company was able to complete the facility, which opened in May, in just eight months by using a modular build design approach.
MC Digital Realty (the joint venture of Mitsubishi and Digital Realty, formed in 2017) announced in June that it had acquired five acres of land in Tokyo, where it plans to construct a 36MW datacenter facility. This will be MC Digital Realty's third facility in the Tokyo market, and the company hopes to have it open by the end of 2021. This announcement followed the opening of its latest facility in Osaka. The 247,000-gross-square-foot facility is the company's second in Osaka (fourth in Japan) and features 28MW of IT capacity.
Outside of Tokyo, Colt Data Center Services has acquired property in Osaka, where it intends to build a 30MW datacenter. The company will begin construction on the facility later this year, but has yet to announce any formal completion dates. Equinix also announced a new expansion in Osaka. Phase 5 of its OS1 facility will open in Q2 of this year. This marries the company's ongoing project in Tokyo, TY11. NTT has plans to open two new datacenters in Osaka, Osaka 6 and 7. Osaka 6 will open first, with an initial size of 5,000 square feet of operational space, but will eventually expand to 14,700 square feet. Osaka 7 will launch with 40,000 square feet of operational space, with expansion space of up to 102,300 square feet. The company states that both facilities will open in 2019. To the north and east, Kyocera Communication Systems intends to build a new datacenter in Hokkaido, Japan. The facility will be powered by redundant 2MW feeds from completely renewable sources, and is scheduled to open in 2021.
Aside from these physical expansion announcements, NTT has also announced the expansion of its interconnection program. The company intends to offer interconnection services to both the BBIX and JPIX internet exchange services, in addition to the JPNAP internet exchange, which is already available. These will be rolled out to many of the company's facilities in Tokyo, Yokohama, Saitama and Osaka.
MTDC newcomer Data Exchange received approval for its datacenter near Sydney Olympic Park and spent Q2 finalizing the details of the datacenter, which will open in Q3 2019. The company has selected a warehouse to house its self-built datacenter modules, which it has deployed in remote locations for individual enterprises in Australia and Africa. Each module houses 29 racks and is connected to power modules for infrastructure. Customers can lease single cabinets, entire modules or clusters of five modules equal to 1MW. The building, which will undergo renovation to incorporate traditional datacenter security measures, has space to support a total of 5MW of capacity.
Digital Realty will continue to fit out its SYD11 datacenter, which opened in Q4 2018 and will ultimately house six data halls of 2.4-3MW each. The company is targeting customers that will take up entire data halls. It has also acquired property for SYD14, which is fully planned.
Equinix plans to build its SY5 facility, its eighth datacenter in Sydney and sixteenth in Australia. The company plans to invest $160m in the first phase, which will open in Q3 2019 with approximately 51,000 square feet. At full buildout, the facility will include over 260,000 square feet and 9,225 cabinets.
Macquarie Telecom continues to expand its Intellicentre 3 (IC3) facility, which is located adjacent to its Intellicentre 2 facility in Macquarie Park and is under long-term lease with Keppel DC REIT. The expansion, which will open in early 2020, will add 16MW to the existing IC3 East facility, and eventually 17MW of capacity in a new IC3 West facility.
NEXTDC continues to add capacity to its S2 facility in Macquarie Park, which opened in May with an anchor tenant already deployed. The company expects to have 22MW of capacity opened by the end of the year, leaving 8MW for future buildout. Several other providers, including AirTrunk, Fujitsu and Global Switch, have room for expansions within existing datacenters in various locations throughout the city.
Alibaba launched its second datacenter in Indonesia, and Keppel Data Centres, Salim Group, Polymer Connected and Telkomsigma have all announced new datacenter builds in the recent past.
NTT Communications announced in June the construction of its third facility in the Jakarta market. The project is a datacenter campus, with a final capacity of 45MW and almost 200,000 square feet of datacenter space, once all phases are built out. The company is eyeing the opening of its first phase of the project, which is located in Bekasi (east of downtown Jakarta by about 30km), by the end of 2020.
In April AWS announced that it intends to open a cloud region in Indonesia, which the company hopes to have operational by the end of 2021 or early 2022. This comes on the heels of Alibaba launching its second datacenter in the country, as included in the previous quarter's reports.