Twitter, hyperscale, self-builds, regulatory, expansions, MEA, LatAm
The sector moves into the near year facing a turbulent landscape shaped by macroeconomic weakness, geopolitical events and the ups and downs of re-opening as the world moves past the heights of the pandemic.
One thing to be looking closely at in 2023 will be the extent to which enterprise decision-makers slow or accelerate cloud and outsourced infrastructure adoption. Big tech firms are doing similar things and Twitter has been the poster child. Elon Musk is looking to cut infrastructure costs and made good on those plans as reports indicate Twitter has closed one of its primary data centre locations.
The current environment is also impacting hyperscalers. Google and Meta have paused certain data centre projects as they optimize CapEx resources and re-evaluate strategy, while environmental and regulatory concerns have significantly shifted a number of markets. One of those is Singapore. Major builds have slowed here, but there is a process for making some capacity availability for development that the likes of Equinix and Digital Realty have applied for.
While there are challenges across the landscape, the next tier of hyperscale markets continues to emerge. There has been more activity in South Africa as Equinix and Vantage Data Centers made moves in recent weeks, along with OADC, while markets like Greece and Poland are rising. Digital Realty acquired more land in Athens and Atman purchased land in Warsaw.
Another part of the world seeing growth is Latin America. Aligned Data Centers acquired ODATA to enter the region and Structure Research will soon have an announcement on a new initiative to extend our deep-dive coverage to the region.
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