Earnings, interconnection, M&A, APAC, edge, global markets
It was another busy week across the sector, with activity in global markets leading the way.
Earnings season is in full swing and in the past week, we look at the results coming from CyrusOne, CoreSite, Limelight Networks, DE-CIX and Iron Mountain. The results were encouraging and demonstrate the resilience of the sector even in the face of extremely weak macroeconomic conditions.
Interconnection continues to be a growth driver for data centre operators and this played out in some of the public company results. Providers continue to refine and build their capabilities in this area. Cologix updated its interconnection platform, Cloudflare rolled out a direct interconnection product, while Megaport lit up nodes in multiple TierPoint data centres. Interconnection also continues to be a big part of emerging micro data centre deployments in edge markets and we recently saw EdgePresence extend its footprint again around Atlanta and Jacksonville.
There was more M&A activity in the past week, with multiple transactions coming out of APAC. Equinix entered the Indian data centre market with the acquisition of two data centres in Mumbai and Centuria Industrial REIT acquired a Telstra data centre asset in Australia. Meanwhile, over in Europe, OVH made a technology acquisition and Claranet pushed into Latin America with the acquisition of CorpFlex.
In other strategic developments, reporting emerged that Amazon is considering a minority investment in Rackspace.
Global markets continue to see data centre development activity. In APAC, NEXTDC brought online a second data centre in Perth, while Alibaba Cloud opened more data centres in China. Europe was a big driver of growth for CyrusOne and we also saw Euclyde start a build in Strasbourg, France, TeleData confirmed expansion plans in Manchester, while TikTok confirmed that it will build a data centre in Ireland that will store Europe-based content. There continue to be rumours swirling around TikTok and we look at the infrastructure angle that may arise.
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