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M&A, data centre, hyperscale, expansions, xSP ecosystem

  • October 12, 2020
  • Analyst: Philbert Shih

The past week’s developments were heavy on the data centre side with M&A activity and expansions in key markets around the world. Hyperscale cloud continues to be a big part of the data centre story and it is pushing out into more global markets.

The highest profile deal saw DataBank acquire the zColo data centre and interconnection assets from Zayo Group in a deal that scales the business and expands its footprint significantly. The deal increases DataBank’s portfolio to 64 data centres in 29 markets.

In other M&A activity, Landmark Dividend acquired two Sungard AS data centres – in Toronto and Atlanta – and PCCW entered the Malaysia market with the purchase of a data centre site. Meanwhile, also in the past week, Equinix completed its acquisition of Bell Canada Enterprise’s data centre portfolio. On the cloud side, Accenture acquired a company called N3 to help with its virtual selling needs as cloud climbs as a portion of its overall revenue.

There was plenty of data centre expansion activity and Hillsboro was a busy place. QTS opened its first pre-leased phase in Hillsboro, while Flexential broke ground on its Hillsboro 3 data centre. Elsewhere, VIRTUS opened up its latest London-area data centreNTT GDC brought online a large facility in Mumbai and Involta expanded its Cleveland and Pittsburgh data centres.

Hyperscale cloud is a driver behind many of these builds and expansions and it continues to grow around the world. Microsoft is building more AZs in Germany and Arizona, while Oracle launched a cloud region in the UAE.

Finally, major technology platforms like VMware continue to extend into the service provider ecosystem. Rackspace is supporting VMware on multiple public cloud platforms and CoreSite partnered with VMware and Dell for converged infrastructure to be hosted in its data centres. In other product developments of note, Digital Realty will support AWS Outposts, a converged infrastructure appliance, in its data centres and Cloudflare created a plugin for WordPress optimization.

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