Hyperscale, APAC, Europe, pandemic impact, SMB
The sector continued to push forward as data centre expansion activity was steady across multiple regions. Not surprisingly, hyperscale was a big driver and it is pushing infrastructure into new markets around the world.
A market in APAC that is quickly developing is Jakarta, Indonesia. Google Cloud opened its region here and DCI Indonesia brought online its JK3 data centre in Jakarta. Meanwhile, Google Cloud is pushing its footprint into global markets and is building in Poland as well.
In Europe, the line between the UK and Europe is starting to drive deployments. In the past week, we saw how ServiceNow set up its data centre ‘pairs’ to deal with the post-Brexit regulatory landscape.
Hyperscale continues to move into global markets beyond APAC and Europe. In the past few weeks, we saw IXcellerate expand its Moscow capacity, Ascenty did the the same in Brazil and MEEZA is building more inventory in Qatar in anticipation of hyperscale.
The US market continues to see growth in both primary and secondary markets. Equinix expanded in Dallas, while DataBank opened a new facility in Pittsburgh and TierPoint is building in Seattle.
The pandemic environment has not slowed hyperscale cloud growth, but the impact will have different dynamics in the SMB space. GoDaddy cut part of its workforce as certain lines of business struggle, but overall, the early signs are that it has been able to weather the current storm. SMB rival Wix also showed positives signs, while iomart in the UK is staying on even keel. The 2Q20 earnings season will provide more details and give us a window into infrastructure performance during the peak period of pandemic-driven lockdowns.
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