Capital raises, earnings, interconnection, expansions
Long weekends did not slow activity in the sector and there were a number of notable developments across data centre and cloud.
A number of infrastructure providers raised capital to fund growth initiatives. On the cloud side of things, Digital Ocean disclosed a Series C round as it looks to continue pushing growth. On the data centre side, France-based DATA4 completed a substantial financing round as it continues to expand in existing markets and target new ones, while Aligned Energy increased its credit facility. Meanwhile, INAP completed its restructuring processand came out as a private company with credit facilities it plans to use to support growth. INAP also transitioned to a new CEO.
Earnings season has revealed a number of new dynamics as COVID-19 impacts the sector in a number of different ways. We took a closer look at the results coming fromDigital Realty, GoDaddy and Spain’s Gigas. The SMB market looks to be following somewhat similar patterns to other pockets of the sector. There are customers expanding and buying new services as businesses transition online and people work from home. But SMB seems to be able to get new adds a lot easier than in the enterprise market where decisions take longer and long-term contracts are signed. Of course, this is offset by the fact SMB customers also churn much easier. Expect to see a lot more volatility with providers exposed to the the SMB market, but in general, the pain can and will be offset by gains amid the new environment. GoDaddy and Digital Ocean both shared examples of this.
The interconnection market was also busy in the past week. CoreSite and Cologix built connections to the expanding Oracle Cloud platform and Megaport deployed a SDN node with EdgeConneX in Poland.
There was also meaningful activity in the Atlanta market. STACK INFRASTRUCTURE is expanding in this market, while Colo Atl completed a number of upgrades and added new inventory here as well.
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