SlideShare a Scribd company logo
1 of 9
Download to read offline
Presented by:
Lynus Pook
Senior Director | Regional Industrial Advisory | Asia
Data may be the
new gold. Can we
say the same about
data centres?
September 2021
ASEAN Data Centre & Cloud Summit 2021
What drives demand for global & APAC data
centres?
Source: Colliers, Structure Research & Keppel DC
Colliers 2
Growth in the
global colocation
market
Increase in end-
user spending
on global data
centre
infrastructure
Growing
demand for
hyperscale data
centres
Enterprise
spending on
cloud
infrastructure
to grow
Smartphone
subscription to
see exponential
growth
The rise
of 5G
Asset class Location Building Rent (net lettable) Building efficiency
Warehouse Jurong Benoi/Penjuru S$1.50psf 75%
ASEAN Data Centre & Cloud Summit 2021
Key considerations when investing in
data centres
Source: Colliers
Colliers 3
Rental comparisons among the different asset classes
High tech factory Central TaiSeng/Kallang S$2-3psf 80%
Residential Central River Valley S$4-5psf 95%
Business park Central Alexandra S$6-7psf 85%
Office CBD Marina Bay S$11-12psf 85%
Retail Orchard ION Orchard S$20-35psf 70%
Data centre (Wholesale colo) Jurong Tanjong Kling S$30-40psf 55%
Data centre (Retail colo) Jurong Tanjong Kling S$40-80+psf 40%
Site selection
criteria
ASEAN Data Centre & Cloud Summit 2021
Key considerations when investing in
data centres
Source: Colliers
Colliers 4
Data
privacy
Technological
obsolescence
Sustainability
concerns
Operational
risks
Case Study
Facebook data centre
(hyperscale)
Facebook aims to build the
wo d’ mo dv d d
efficient data centre in Singapore
to add to their portfolio of hyper-
efficient facilities.
Source: Colliers; Business Times
https://engineering.fb.com/2019/01/14/data-center-engineering/singapore-data-center/
Colliers 5
Case Study
Facebook data centre (hyperscale)
Source: Colliers; Business Times
https://engineering.fb.com/2019/01/14/data-center-engineering/singapore-data-center/
Colliers 6
Type Description
Project name
Facebook Data Centre in Singapore
(Its first data centre in Singapore, 150MW)
Company
information
Facebook
Current status Under construction (Year of completion: 2023)
Location Tanjong Kling Data Centre Park
Development
concept
• The first custom-built hyperscale data centre with the
development of new cooling solutions for both design and
operations, innovation and efficiency
• Th wo d’ d centre (a 11-storey/high-rise
building with GFA of 170,000 sq m)
• PUE of 1.19 d x o y o w h S po ’
Garden City concept
Strategic
objectives
To build the most advanced and efficient data centre in the
world
Type Description
Suitability
• Sustainable Tropical Data Centre in Singapore (STDCT, SGD23-
million research program): Testbed located in the NUS Kent
Ridge Campus (a joint project with the Singapore Government and
funded by the NRF, Asceniz, CoolestDC, Keppel Data Centres, New
Media Express and Red Dot Analytics)
• To reduce the greenhouse gas emissions and energy
consumption of up to 25% (aligned with RIE 2025) with the aim
of pp y 12% of h o y’ o y d by 2030
• To lower the energy usage of the data centre industry across the
entire tropical region by at least 40%
Regional
deployment
• F book’ first data centre in Asia Pacific and the technical hub
for all of Southeast Asia
• Data centre will serve F book’ customers in all of Asia
Economic
impact
• Creation of Jobs – thousands of construction jobs and
hundreds of operators
• Investment of close to USD1billion
Value-add
impact
• StatePoint Liquid Cooling (SPLC) jointly developed by Nortek
• 100% renewable energy from two solar-powered purchase
agreements with Sunseap
(50MW solar farm from rooftops and 100MW offshore floating
solar farm)
ASEAN Data Centre & Cloud Summit 2021
Are data centres real estate or utility?
Source: Colliers
Colliers 7
The devil is in the details
1) Limited supply of industrial land
2) Restrictive government regulations
3) High cost of construction and operation
4) Difficulties in hiring skilled labour
Some may view this asset class as a utility, as 70% of
the construction cost goes into the equipment.
ASEAN Data Centre & Cloud Summit 2021
Are data centres real estate or utility?
Source: Colliers
Colliers 8
All that glitters is not gold
Points to consider or note before diving
straight into data centres
• A big component of the data centre capex is invested
in mechanical and electrical plants
• Unlike conventional real estate, utilities have a finite
lifespan
• Maintaining the equipment requires a dedicated team
of professionals
• What is your competitive advantage against the
renowned operators?
• Data centre has a high barrier to entry and is not for
the faint-hearted
About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our more than 15,000 enterprising professionals work
collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual
investment returns of almost 20% for shareholders. With annualized revenues of $3.3 billion ($3.6 billion including affiliates) and $45 billion of assets under management, we maximize the potential of property
and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
Legal Disclaimer
This document/email has been prepared by Colliers for advertising and general information only. Colliers makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the
information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers excludes
unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of
Colliers and /or its licensor(s). © 2021. All rights reserved. This communication is not intended to cause or induce breach of an existing listing agreement.

More Related Content

What's hot

Empowering a Mobile Workforce: An Objective Comparison of Leading Mobile Devi...
Empowering a Mobile Workforce: An Objective Comparison of Leading Mobile Devi...Empowering a Mobile Workforce: An Objective Comparison of Leading Mobile Devi...
Empowering a Mobile Workforce: An Objective Comparison of Leading Mobile Devi...Enterprise Management Associates
 
Optimizing Oracle Cloud Infrastructure through Interconnection
Optimizing Oracle Cloud Infrastructure through Interconnection Optimizing Oracle Cloud Infrastructure through Interconnection
Optimizing Oracle Cloud Infrastructure through Interconnection Equinix
 
Why and-how-to-choose-an-iot-platforms-201701
Why and-how-to-choose-an-iot-platforms-201701Why and-how-to-choose-an-iot-platforms-201701
Why and-how-to-choose-an-iot-platforms-201701Omar Nawaz
 
Challenges in Clinical Research: Aridhia Disrupts Technology Approach to Rese...
Challenges in Clinical Research: Aridhia Disrupts Technology Approach to Rese...Challenges in Clinical Research: Aridhia Disrupts Technology Approach to Rese...
Challenges in Clinical Research: Aridhia Disrupts Technology Approach to Rese...VMware Tanzu
 
Intel APJ Enterprise Day - Keynote by RK Hiremane
Intel APJ Enterprise Day - Keynote by RK HiremaneIntel APJ Enterprise Day - Keynote by RK Hiremane
Intel APJ Enterprise Day - Keynote by RK HiremaneIntelAPAC
 
IoT and the Oil & Gas industry at M2M Oil & Gas 2014 in London
IoT and the Oil & Gas industry at M2M Oil & Gas 2014 in LondonIoT and the Oil & Gas industry at M2M Oil & Gas 2014 in London
IoT and the Oil & Gas industry at M2M Oil & Gas 2014 in LondonEurotech
 
Powering the Internet of Things with Apache Hadoop
Powering the Internet of Things with Apache HadoopPowering the Internet of Things with Apache Hadoop
Powering the Internet of Things with Apache HadoopCloudera, Inc.
 
The Prospect of IoT in the Oil & Gas
The Prospect of IoT in the Oil & Gas The Prospect of IoT in the Oil & Gas
The Prospect of IoT in the Oil & Gas Ghazi Wadi, PMP
 
Hyperconverged Systems for Digital Transformation
Hyperconverged Systems for Digital TransformationHyperconverged Systems for Digital Transformation
Hyperconverged Systems for Digital TransformationHitachi Vantara
 
CL2015 - Datacenter and Cloud Strategy and Planning
CL2015 - Datacenter and Cloud Strategy and PlanningCL2015 - Datacenter and Cloud Strategy and Planning
CL2015 - Datacenter and Cloud Strategy and PlanningCisco
 
Terminology guide for digital health in 2021
Terminology guide for digital health in 2021Terminology guide for digital health in 2021
Terminology guide for digital health in 2021Velametis
 
How Mentor Graphics Uses Google Cloud for the Internet of Things - Google Clo...
How Mentor Graphics Uses Google Cloud for the Internet of Things - Google Clo...How Mentor Graphics Uses Google Cloud for the Internet of Things - Google Clo...
How Mentor Graphics Uses Google Cloud for the Internet of Things - Google Clo...RightScale
 
The Digital Decoupling Journey | John Kriter, Accenture
The Digital Decoupling Journey | John Kriter, AccentureThe Digital Decoupling Journey | John Kriter, Accenture
The Digital Decoupling Journey | John Kriter, AccentureHostedbyConfluent
 
Pivotal Digital Transformation Forum: Data Science
Pivotal Digital Transformation Forum: Data Science Pivotal Digital Transformation Forum: Data Science
Pivotal Digital Transformation Forum: Data Science VMware Tanzu
 
Traversing the Digital Vortex, Lux Rao, Director & Leader, Digital Transforma...
Traversing the Digital Vortex, Lux Rao, Director & Leader, Digital Transforma...Traversing the Digital Vortex, Lux Rao, Director & Leader, Digital Transforma...
Traversing the Digital Vortex, Lux Rao, Director & Leader, Digital Transforma...Rahul Neel Mani
 
The Industrial Internet: Automation and Analytics
The Industrial Internet: Automation and AnalyticsThe Industrial Internet: Automation and Analytics
The Industrial Internet: Automation and AnalyticsAltoros
 
Connecting Legacy Data Sources to the Data Lifecycle
 Connecting Legacy Data Sources to the Data Lifecycle Connecting Legacy Data Sources to the Data Lifecycle
Connecting Legacy Data Sources to the Data LifecyclePrecisely
 
CWIN17 san francisco-kiran murthy-cloud native - sf v4
CWIN17 san francisco-kiran murthy-cloud native - sf v4CWIN17 san francisco-kiran murthy-cloud native - sf v4
CWIN17 san francisco-kiran murthy-cloud native - sf v4Capgemini
 
The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energ...
The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energ...The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energ...
The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energ...accenture
 
How to increase your understanding of application usage with LeanIX and OneLo...
How to increase your understanding of application usage with LeanIX and OneLo...How to increase your understanding of application usage with LeanIX and OneLo...
How to increase your understanding of application usage with LeanIX and OneLo...LeanIX GmbH
 

What's hot (20)

Empowering a Mobile Workforce: An Objective Comparison of Leading Mobile Devi...
Empowering a Mobile Workforce: An Objective Comparison of Leading Mobile Devi...Empowering a Mobile Workforce: An Objective Comparison of Leading Mobile Devi...
Empowering a Mobile Workforce: An Objective Comparison of Leading Mobile Devi...
 
Optimizing Oracle Cloud Infrastructure through Interconnection
Optimizing Oracle Cloud Infrastructure through Interconnection Optimizing Oracle Cloud Infrastructure through Interconnection
Optimizing Oracle Cloud Infrastructure through Interconnection
 
Why and-how-to-choose-an-iot-platforms-201701
Why and-how-to-choose-an-iot-platforms-201701Why and-how-to-choose-an-iot-platforms-201701
Why and-how-to-choose-an-iot-platforms-201701
 
Challenges in Clinical Research: Aridhia Disrupts Technology Approach to Rese...
Challenges in Clinical Research: Aridhia Disrupts Technology Approach to Rese...Challenges in Clinical Research: Aridhia Disrupts Technology Approach to Rese...
Challenges in Clinical Research: Aridhia Disrupts Technology Approach to Rese...
 
Intel APJ Enterprise Day - Keynote by RK Hiremane
Intel APJ Enterprise Day - Keynote by RK HiremaneIntel APJ Enterprise Day - Keynote by RK Hiremane
Intel APJ Enterprise Day - Keynote by RK Hiremane
 
IoT and the Oil & Gas industry at M2M Oil & Gas 2014 in London
IoT and the Oil & Gas industry at M2M Oil & Gas 2014 in LondonIoT and the Oil & Gas industry at M2M Oil & Gas 2014 in London
IoT and the Oil & Gas industry at M2M Oil & Gas 2014 in London
 
Powering the Internet of Things with Apache Hadoop
Powering the Internet of Things with Apache HadoopPowering the Internet of Things with Apache Hadoop
Powering the Internet of Things with Apache Hadoop
 
The Prospect of IoT in the Oil & Gas
The Prospect of IoT in the Oil & Gas The Prospect of IoT in the Oil & Gas
The Prospect of IoT in the Oil & Gas
 
Hyperconverged Systems for Digital Transformation
Hyperconverged Systems for Digital TransformationHyperconverged Systems for Digital Transformation
Hyperconverged Systems for Digital Transformation
 
CL2015 - Datacenter and Cloud Strategy and Planning
CL2015 - Datacenter and Cloud Strategy and PlanningCL2015 - Datacenter and Cloud Strategy and Planning
CL2015 - Datacenter and Cloud Strategy and Planning
 
Terminology guide for digital health in 2021
Terminology guide for digital health in 2021Terminology guide for digital health in 2021
Terminology guide for digital health in 2021
 
How Mentor Graphics Uses Google Cloud for the Internet of Things - Google Clo...
How Mentor Graphics Uses Google Cloud for the Internet of Things - Google Clo...How Mentor Graphics Uses Google Cloud for the Internet of Things - Google Clo...
How Mentor Graphics Uses Google Cloud for the Internet of Things - Google Clo...
 
The Digital Decoupling Journey | John Kriter, Accenture
The Digital Decoupling Journey | John Kriter, AccentureThe Digital Decoupling Journey | John Kriter, Accenture
The Digital Decoupling Journey | John Kriter, Accenture
 
Pivotal Digital Transformation Forum: Data Science
Pivotal Digital Transformation Forum: Data Science Pivotal Digital Transformation Forum: Data Science
Pivotal Digital Transformation Forum: Data Science
 
Traversing the Digital Vortex, Lux Rao, Director & Leader, Digital Transforma...
Traversing the Digital Vortex, Lux Rao, Director & Leader, Digital Transforma...Traversing the Digital Vortex, Lux Rao, Director & Leader, Digital Transforma...
Traversing the Digital Vortex, Lux Rao, Director & Leader, Digital Transforma...
 
The Industrial Internet: Automation and Analytics
The Industrial Internet: Automation and AnalyticsThe Industrial Internet: Automation and Analytics
The Industrial Internet: Automation and Analytics
 
Connecting Legacy Data Sources to the Data Lifecycle
 Connecting Legacy Data Sources to the Data Lifecycle Connecting Legacy Data Sources to the Data Lifecycle
Connecting Legacy Data Sources to the Data Lifecycle
 
CWIN17 san francisco-kiran murthy-cloud native - sf v4
CWIN17 san francisco-kiran murthy-cloud native - sf v4CWIN17 san francisco-kiran murthy-cloud native - sf v4
CWIN17 san francisco-kiran murthy-cloud native - sf v4
 
The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energ...
The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energ...The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energ...
The New Energy Consumer: What Promises Do Blockchain Technologies Offer Energ...
 
How to increase your understanding of application usage with LeanIX and OneLo...
How to increase your understanding of application usage with LeanIX and OneLo...How to increase your understanding of application usage with LeanIX and OneLo...
How to increase your understanding of application usage with LeanIX and OneLo...
 

Similar to Data may be the new gold. Can we say the same about data centres?

Presentation slides for investor meetings in Hong Kong
Presentation slides for investor meetings in Hong KongPresentation slides for investor meetings in Hong Kong
Presentation slides for investor meetings in Hong KongKeppelCorporation
 
brightsolid Tech Trends in Energy
brightsolid Tech Trends in Energybrightsolid Tech Trends in Energy
brightsolid Tech Trends in Energybrightsolid
 
PV Insider LATAM 2013 photovoltaics conference
PV Insider LATAM 2013 photovoltaics conferencePV Insider LATAM 2013 photovoltaics conference
PV Insider LATAM 2013 photovoltaics conferenceDavid Williams
 
Harel Kodesh, Vice President, Predix and CTO, GE Digital
Harel Kodesh, Vice President, Predix and CTO, GE DigitalHarel Kodesh, Vice President, Predix and CTO, GE Digital
Harel Kodesh, Vice President, Predix and CTO, GE DigitalMIT Enterprise Forum Cambridge
 
GE 이노베이션 포럼 2017 LIVE 발표자료 - 빌 루 GE 최고디지털책임자 겸 GE Digital 사장
GE 이노베이션 포럼 2017 LIVE 발표자료 - 빌 루 GE 최고디지털책임자 겸 GE Digital 사장GE 이노베이션 포럼 2017 LIVE 발표자료 - 빌 루 GE 최고디지털책임자 겸 GE Digital 사장
GE 이노베이션 포럼 2017 LIVE 발표자료 - 빌 루 GE 최고디지털책임자 겸 GE Digital 사장GE코리아
 
Keppel Corporation Presentation to Investors in Bangkok- September 2019
Keppel Corporation Presentation to Investors in Bangkok- September 2019Keppel Corporation Presentation to Investors in Bangkok- September 2019
Keppel Corporation Presentation to Investors in Bangkok- September 2019KeppelCorporation
 
Intelligent Net-Zero Carbon Investment Planning for Buildings and Portfolios
Intelligent Net-Zero Carbon Investment Planning for Buildings and PortfoliosIntelligent Net-Zero Carbon Investment Planning for Buildings and Portfolios
Intelligent Net-Zero Carbon Investment Planning for Buildings and PortfoliosIES VE
 
Empowering Net-Zero: Digital Insights and Funding Opportunities for Industria...
Empowering Net-Zero: Digital Insights and Funding Opportunities for Industria...Empowering Net-Zero: Digital Insights and Funding Opportunities for Industria...
Empowering Net-Zero: Digital Insights and Funding Opportunities for Industria...IES VE
 
Keppel Corporation’s Presentation to Investors at the CS-SGX ESG-Real Estate ...
Keppel Corporation’s Presentation to Investors at the CS-SGX ESG-Real Estate ...Keppel Corporation’s Presentation to Investors at the CS-SGX ESG-Real Estate ...
Keppel Corporation’s Presentation to Investors at the CS-SGX ESG-Real Estate ...KeppelCorporation
 
Navigating the Energy Transformation: Creating Customer and Shareholder Value...
Navigating the Energy Transformation: Creating Customer and Shareholder Value...Navigating the Energy Transformation: Creating Customer and Shareholder Value...
Navigating the Energy Transformation: Creating Customer and Shareholder Value...Guidehouse
 
Executing the Digital Strategy
Executing the Digital StrategyExecuting the Digital Strategy
Executing the Digital StrategyBen Turner
 
Keppel Capital Virtual Corporate Day Presentation Slides
Keppel Capital Virtual Corporate Day Presentation SlidesKeppel Capital Virtual Corporate Day Presentation Slides
Keppel Capital Virtual Corporate Day Presentation SlidesKeppelCorporation
 
UtiliVATION - Utility Innovation - Indigo Advisory Group
UtiliVATION - Utility Innovation - Indigo Advisory GroupUtiliVATION - Utility Innovation - Indigo Advisory Group
UtiliVATION - Utility Innovation - Indigo Advisory GroupIndigo Advisory Group
 
Stellendale park idc l meadon version
Stellendale park idc l meadon versionStellendale park idc l meadon version
Stellendale park idc l meadon versionLeonMeadon
 
How To Position Cloud
How To Position CloudHow To Position Cloud
How To Position CloudVishal Sharma
 
ey-hfs-top-10-application-modernization-services-2022-ey-excerpt.pdf
ey-hfs-top-10-application-modernization-services-2022-ey-excerpt.pdfey-hfs-top-10-application-modernization-services-2022-ey-excerpt.pdf
ey-hfs-top-10-application-modernization-services-2022-ey-excerpt.pdfravinatke
 
Oil & Gas ICT 2015
Oil & Gas ICT 2015Oil & Gas ICT 2015
Oil & Gas ICT 2015Ray Bugg
 
Spottitt - NOAH18 London
Spottitt - NOAH18 LondonSpottitt - NOAH18 London
Spottitt - NOAH18 LondonNOAH Advisors
 

Similar to Data may be the new gold. Can we say the same about data centres? (20)

Presentation slides for investor meetings in Hong Kong
Presentation slides for investor meetings in Hong KongPresentation slides for investor meetings in Hong Kong
Presentation slides for investor meetings in Hong Kong
 
brightsolid Tech Trends in Energy
brightsolid Tech Trends in Energybrightsolid Tech Trends in Energy
brightsolid Tech Trends in Energy
 
PV Insider LATAM 2013 photovoltaics conference
PV Insider LATAM 2013 photovoltaics conferencePV Insider LATAM 2013 photovoltaics conference
PV Insider LATAM 2013 photovoltaics conference
 
Harel Kodesh, Vice President, Predix and CTO, GE Digital
Harel Kodesh, Vice President, Predix and CTO, GE DigitalHarel Kodesh, Vice President, Predix and CTO, GE Digital
Harel Kodesh, Vice President, Predix and CTO, GE Digital
 
GE 이노베이션 포럼 2017 LIVE 발표자료 - 빌 루 GE 최고디지털책임자 겸 GE Digital 사장
GE 이노베이션 포럼 2017 LIVE 발표자료 - 빌 루 GE 최고디지털책임자 겸 GE Digital 사장GE 이노베이션 포럼 2017 LIVE 발표자료 - 빌 루 GE 최고디지털책임자 겸 GE Digital 사장
GE 이노베이션 포럼 2017 LIVE 발표자료 - 빌 루 GE 최고디지털책임자 겸 GE Digital 사장
 
Keppel Corporation Presentation to Investors in Bangkok- September 2019
Keppel Corporation Presentation to Investors in Bangkok- September 2019Keppel Corporation Presentation to Investors in Bangkok- September 2019
Keppel Corporation Presentation to Investors in Bangkok- September 2019
 
Q2 2015 Presentation
Q2 2015 PresentationQ2 2015 Presentation
Q2 2015 Presentation
 
Intelligent Net-Zero Carbon Investment Planning for Buildings and Portfolios
Intelligent Net-Zero Carbon Investment Planning for Buildings and PortfoliosIntelligent Net-Zero Carbon Investment Planning for Buildings and Portfolios
Intelligent Net-Zero Carbon Investment Planning for Buildings and Portfolios
 
Empowering Net-Zero: Digital Insights and Funding Opportunities for Industria...
Empowering Net-Zero: Digital Insights and Funding Opportunities for Industria...Empowering Net-Zero: Digital Insights and Funding Opportunities for Industria...
Empowering Net-Zero: Digital Insights and Funding Opportunities for Industria...
 
Keppel Corporation’s Presentation to Investors at the CS-SGX ESG-Real Estate ...
Keppel Corporation’s Presentation to Investors at the CS-SGX ESG-Real Estate ...Keppel Corporation’s Presentation to Investors at the CS-SGX ESG-Real Estate ...
Keppel Corporation’s Presentation to Investors at the CS-SGX ESG-Real Estate ...
 
Navigating the Energy Transformation: Creating Customer and Shareholder Value...
Navigating the Energy Transformation: Creating Customer and Shareholder Value...Navigating the Energy Transformation: Creating Customer and Shareholder Value...
Navigating the Energy Transformation: Creating Customer and Shareholder Value...
 
Executing the Digital Strategy
Executing the Digital StrategyExecuting the Digital Strategy
Executing the Digital Strategy
 
Keppel Capital Virtual Corporate Day Presentation Slides
Keppel Capital Virtual Corporate Day Presentation SlidesKeppel Capital Virtual Corporate Day Presentation Slides
Keppel Capital Virtual Corporate Day Presentation Slides
 
UtiliVATION - Utility Innovation - Indigo Advisory Group
UtiliVATION - Utility Innovation - Indigo Advisory GroupUtiliVATION - Utility Innovation - Indigo Advisory Group
UtiliVATION - Utility Innovation - Indigo Advisory Group
 
Network Evolution and Market Outlook
Network Evolution and Market OutlookNetwork Evolution and Market Outlook
Network Evolution and Market Outlook
 
Stellendale park idc l meadon version
Stellendale park idc l meadon versionStellendale park idc l meadon version
Stellendale park idc l meadon version
 
How To Position Cloud
How To Position CloudHow To Position Cloud
How To Position Cloud
 
ey-hfs-top-10-application-modernization-services-2022-ey-excerpt.pdf
ey-hfs-top-10-application-modernization-services-2022-ey-excerpt.pdfey-hfs-top-10-application-modernization-services-2022-ey-excerpt.pdf
ey-hfs-top-10-application-modernization-services-2022-ey-excerpt.pdf
 
Oil & Gas ICT 2015
Oil & Gas ICT 2015Oil & Gas ICT 2015
Oil & Gas ICT 2015
 
Spottitt - NOAH18 London
Spottitt - NOAH18 LondonSpottitt - NOAH18 London
Spottitt - NOAH18 London
 

Data may be the new gold. Can we say the same about data centres?

  • 1. Presented by: Lynus Pook Senior Director | Regional Industrial Advisory | Asia Data may be the new gold. Can we say the same about data centres? September 2021
  • 2. ASEAN Data Centre & Cloud Summit 2021 What drives demand for global & APAC data centres? Source: Colliers, Structure Research & Keppel DC Colliers 2 Growth in the global colocation market Increase in end- user spending on global data centre infrastructure Growing demand for hyperscale data centres Enterprise spending on cloud infrastructure to grow Smartphone subscription to see exponential growth The rise of 5G
  • 3. Asset class Location Building Rent (net lettable) Building efficiency Warehouse Jurong Benoi/Penjuru S$1.50psf 75% ASEAN Data Centre & Cloud Summit 2021 Key considerations when investing in data centres Source: Colliers Colliers 3 Rental comparisons among the different asset classes High tech factory Central TaiSeng/Kallang S$2-3psf 80% Residential Central River Valley S$4-5psf 95% Business park Central Alexandra S$6-7psf 85% Office CBD Marina Bay S$11-12psf 85% Retail Orchard ION Orchard S$20-35psf 70% Data centre (Wholesale colo) Jurong Tanjong Kling S$30-40psf 55% Data centre (Retail colo) Jurong Tanjong Kling S$40-80+psf 40%
  • 4. Site selection criteria ASEAN Data Centre & Cloud Summit 2021 Key considerations when investing in data centres Source: Colliers Colliers 4 Data privacy Technological obsolescence Sustainability concerns Operational risks
  • 5. Case Study Facebook data centre (hyperscale) Facebook aims to build the wo d’ mo dv d d efficient data centre in Singapore to add to their portfolio of hyper- efficient facilities. Source: Colliers; Business Times https://engineering.fb.com/2019/01/14/data-center-engineering/singapore-data-center/ Colliers 5
  • 6. Case Study Facebook data centre (hyperscale) Source: Colliers; Business Times https://engineering.fb.com/2019/01/14/data-center-engineering/singapore-data-center/ Colliers 6 Type Description Project name Facebook Data Centre in Singapore (Its first data centre in Singapore, 150MW) Company information Facebook Current status Under construction (Year of completion: 2023) Location Tanjong Kling Data Centre Park Development concept • The first custom-built hyperscale data centre with the development of new cooling solutions for both design and operations, innovation and efficiency • Th wo d’ d centre (a 11-storey/high-rise building with GFA of 170,000 sq m) • PUE of 1.19 d x o y o w h S po ’ Garden City concept Strategic objectives To build the most advanced and efficient data centre in the world Type Description Suitability • Sustainable Tropical Data Centre in Singapore (STDCT, SGD23- million research program): Testbed located in the NUS Kent Ridge Campus (a joint project with the Singapore Government and funded by the NRF, Asceniz, CoolestDC, Keppel Data Centres, New Media Express and Red Dot Analytics) • To reduce the greenhouse gas emissions and energy consumption of up to 25% (aligned with RIE 2025) with the aim of pp y 12% of h o y’ o y d by 2030 • To lower the energy usage of the data centre industry across the entire tropical region by at least 40% Regional deployment • F book’ first data centre in Asia Pacific and the technical hub for all of Southeast Asia • Data centre will serve F book’ customers in all of Asia Economic impact • Creation of Jobs – thousands of construction jobs and hundreds of operators • Investment of close to USD1billion Value-add impact • StatePoint Liquid Cooling (SPLC) jointly developed by Nortek • 100% renewable energy from two solar-powered purchase agreements with Sunseap (50MW solar farm from rooftops and 100MW offshore floating solar farm)
  • 7. ASEAN Data Centre & Cloud Summit 2021 Are data centres real estate or utility? Source: Colliers Colliers 7 The devil is in the details 1) Limited supply of industrial land 2) Restrictive government regulations 3) High cost of construction and operation 4) Difficulties in hiring skilled labour Some may view this asset class as a utility, as 70% of the construction cost goes into the equipment.
  • 8. ASEAN Data Centre & Cloud Summit 2021 Are data centres real estate or utility? Source: Colliers Colliers 8 All that glitters is not gold Points to consider or note before diving straight into data centres • A big component of the data centre capex is invested in mechanical and electrical plants • Unlike conventional real estate, utilities have a finite lifespan • Maintaining the equipment requires a dedicated team of professionals • What is your competitive advantage against the renowned operators? • Data centre has a high barrier to entry and is not for the faint-hearted
  • 9. About Colliers Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 66 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.3 billion ($3.6 billion including affiliates) and $45 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn. Legal Disclaimer This document/email has been prepared by Colliers for advertising and general information only. Colliers makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers and /or its licensor(s). © 2021. All rights reserved. This communication is not intended to cause or induce breach of an existing listing agreement.