APAC, hyperscale, Indonesia, Europe, edge data centres, M&A, MEA, earnings
The sector saw a significant volume of activity coming from the hyperscale side of the game and there were a number of noteworthy developments from markets around the world.
Alibaba Cloud recently reported its 1Q21results and the downtick was the result of a large customer loss. That customer is reported to be ByteDance and we look at some of the implications of the move.
Hyperscale cloud platforms continue to expand across APAC and we have looked closely at the long-term potential of the market in Jakarta, Indonesia. A number of operators continue to evaluate this market and Singapore’s STT GDC formed a JV with Triputra Group and Temasek to pursue multi-MW opportunities there. We provide an analysis of the current market dynamics. Also in Indonesia, Alibaba Cloud is set to launch its third availability zone as it continues to expand in this market.
Hyperscale is currently surging across Europe and edge locations and edge computing scenarios are a natural outgrowth of this expansion. This is starting to develop in Europe and Digital Colony teamed up with Liberty Global to form AtlasEdge Data Centres and build a pan-European edge data centre platform.
Hyperscale data centres have become a global game and Yondr is another operator that has done well in Europe. It is now moving to compete in the Americas and disclosed plans to invest up to $2b in pursuit of multiple market opportunities across the US, Canada and the Americas.
Regional markets continue to develop and the Middle East has been emerging on radars. In the past week, there was some notable activity in the UAE, with Moro Hub building in partnership with Huawei and AWS confirmed plans to build a second cloud region in the Middle East in Dubai. In other emerging markets, Google purchased land in Uruguay as it targets locations with subsea cable landing stations.
We continue to monitor and track earnings results from the growing list of providers listed on public markets. This week we looked at CoreSite, Limelight Networks, Akamai and Canada’s TeraGo Networks.
The CDN peer group, like SMB hosting, is seeing shifts in momentum (Fastly, Cloudlare; and on the SMB side, Wix, Digital Ocean and Squarespace) to newer providers and the two long-time CDN stalwarts are on different trajectories. Akamai continues to track well given its ability to drive value-add on top of raw core infrastructure services. The formula is increasingly critical across the spectrum of infrastructure service providers – SMB and beyond.
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