Hyperscale, land assembly, build versus lease, cloud
The sector is pushing forward with widespread activity on a global basis.
Hyperscale cloud continues to drive a good portion of the market and is a big reason why providers continue to purchase land in anticipation of meeting demand with larger and larger requirements. Recent developments saw Compass and Stream acquire land in Phoenix, while CyrusOne purchased property in Santa Clara. Having inventory and a plan for future expansions is critical in a market that is moving increasingly faster. CoreSite recently reported its earnings and the somewhat slower growth rates can be traced back to the lack of sellable inventory.
Hyperscale remains a solid driver of demand, but the likes of AWS also build when it makes sense and opportunities arise in low-cost power regions. AWS had expanded in Montreal exclusively through colocation providers, but reports indicate it is now engaged in the early stages of a self-build. Finally, still on hyperscale, Google revealed some details on what its data centre infrastructure expansion pipeline looks like.
The strategic side was busy and there are reports swirling around the Telefonica data centre portfolio. However, the Zayo assets may not get spun out as a recent offer is said to have been rejected. Meanwhile, Syntax made another acquisition and picked up a JD Edwards shop called EmeraldCube.
Back to cloud, AWS continues to be busy. It very recently updated its partner program as it tries to raise the bar throughout its ecosystem. AWS has also been busy pushing the envelope with its storage products.
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