M&A, Wyoming, alternative energy sources, hyperscale, Singapore, overflow, managed infrastructure
A very busy week saw more M&A, data centre development activity in Wyoming, movement in alternative energy sources for data centres, hyperscale builds in multiple US markets and significant changes in the regulatory landscape in Singapore, which is still driving activity in the overflow market of Johor, Malaysia.
M&A activity continues to shows signs of acceleration and the past week saw a few notable transactions. US Signal acquired the OneNeck managed infrastructure and services arm from TDS in a telco carve-out, while Etix Everywhere got a new investor and Cloudflare picked up more technology capabilities through the acquisition of BastionZone.
Wyoming has been home to MIcrosoft data centres for some time, but it has not been traditionally known to be a data centre hotspot. Things are starting to change and there has been activity developing. Meta is self-building a large data centre campus in Cheyenne, Wyoming and a new platform called Wyoming Hyperscale is ready to kick off a new project and is the latest operator to agree to purchase nuclear power through Oklo.
Power availability and land continues to drive data centre expansion activity and the US Midwest is increasingly home to new projects. We have been following the activity in Columbus, Ohio, but Aligned Data Centers has broken ground on a new project outside Cleveland and Meta is set to build a data centre in Iowa. The Midwest is not the only location seeing activity. AWS broke ground in Mississippi and acquired land in Manassas, while Aligned Data Centers is set to move forward with its data centre build project at the Quantum Loophole site in Frederick, Maryland. Hyperscale continues to be the driving force and AWS confirmed plans to make more investments in Spain and Singapore.
Meanwhile, in APAC, the Singaporean government confirmed it would be permitting another 300MW of data centre capacity for development. This comes after a limited tranche was released back in 2022. The details are still emerging, but the capacity is not likely to change the fundamental trajectory of the market, which is towards the overflow markets of Johor in Malaysia and Batam in Indonesia. Just in the past few weeks, Equinix brought online its data centre in Johor, while Yondr Group powered up its campus in Johor as well.
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