Coronavirus, earnings, strategic, Internet traffic, M&A
It was an eventful week across the sector, with turmoil in the markets and an increasingly pessimistic outlook taking shape. We looked at some of these issues last week and take a closer look at some specific questions about the data centre market. The long and short of it? The outlook for the data centre remains positive even as more bearish opinions are being expressed.
Earnings season is coming to an end and we look at data centre results coming from Iron Mountain and Hong Kong’s iAdvantage. The public markets continue to see change as Interxion has officially merged with Digital Realty and INAP is set to enter a restructuring process that will see it become a private company.
The outbreak of the COVID-19 virus has obviously sparked a lot of the discussion around the outlook for infrastructure services in a likely economic downturn. We have outlined many reasons why we think there are reasons the sector will be resilient and share two data points that support this thesis. SUPERNAP Italia saw traffic growth at its facility and Zoom is seeing unprecedented demand. Needless to say, remote working and collaboration is a tremendous demand generator for Internet infrastructure.
re was also some notable strategic activity in emerging segments. Edge compute provider StackPath closed a Series B round and ST Telemedia in Singapore acquired another managed third party cloud provider.
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