Presentation by Lynus Pook, Senior Director, Regional Industrial Advisory, Occupier Services | Asia, at the ASEAN Data Centre & Cloud Summit 2021 on September 29, 2021.
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