M&A, edge, connectivity, partnerships, earnings

  • November 30, 2020
  • Analyst: Philbert Shih

The sector continued to push forward even with the slowdown in the US for the Thanksgiving holiday.

There was more M&A activity across a number of segments. In the data centre space,Vantage Data Centers expanded its footprint in the Montreal market with the acquisition of independent wholesale operator Hypertec. Elsewhere in the data centre space, 365 Data Centers acquired Atlantic Metro Communications and in APAC, Australia’s 5GN picked up a data centre in Brisbane from Pipe Networks. On the hosting side, there was a smaller SMB deal with Miss Group in the UK buying a provider out in Lithuania.

The edge continues to develop and partnerships are front and centre. Digital Realty and Vapor IO have been working together and added Hivelocity to the mix to set up infrastructure at edge locations in the greater Atlanta market. Meanwhile, EdgeConneX established another new partnership with a service provider. This time it was Los Angeles-based Zenlayer.

We also continue to track earnings season with a closer look at the results coming from Iron MountainEquinix and Kingsoft Cloud. The number of publicly listed providers in the sector continues to grow. But the peer group continues to be misunderstood. We look at the rather misguided comments from popular stock commentator Jim Cramer of Mad Money fame. It seems over the years, he still has not grasped the sector’s value proposition and continues to make bad calls on Internet infrastructure stocks.

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