IPO, earnings, Europe, data centre expansions, APAC, edge
The sector continued to move along as it came out of long weekends in the US, UK and Canada.
Earnings season has come to a close and a highly anticipated return to the public markets saw Rackspace report its second quarter results after its IPO last month. There has been a lot of change at Rackspace in the last several years and the new management team looks to be taking advantage and positioning for a new phase of growth.
Hyperscale was as big theme for earnings in the data centre segment and China’s two listed operators – GDS and 21Vianet – both did well here. Meanwhile, interconnection services continue to transform the space and Australia’s Megaport reported global growth in its results.
Global markets continue to see more data centre expansion. Hyperscale is of course, a primary driver, and Poland is an emerging hotspot, with Beyond.pl building in large quantities. In London, NTT recently confirmed detailed plans for expansion globally and in Europe, while Telehouse will expand in London. Leasing is a popular option but where it makes sense, hyperscale will opt to build and Microsoft is doing this in Johor, Malaysia.
Edge markets are becoming increasingly attractive opportunities in APAC and new companies are being formed in pursuit of the upside. We have been in touch with Digital Edge, based in Singapore, and they announced their entry into the market with acquisitions in Japan, while Leading Edge Data Centres in Australia confirmed some recent progress.
Elsewhere in hyperscale, Microsoft acquired more land in Northern Virginia and there were more customer wins in hyperscale cloud and managed third party cloud.
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