Hyperscale earnings, CapEx, subscale, data centre expansions, APAC, MEA, Europe
Another busy week saw more hyperscale earnings and we take a closer look at the main takeaways as hyperscale saw consistent deceleration in growth across the board. Meanwhile, there was more expansion from subscale providers, edge deployment activity and hyperscale data centre expansion activity.
AWS dipped below 20% growth for the first time and Microsoft, Google and Meta all reported in the past week or so. Growth has slowed, but is still moving in a forward direction, while core fundamentals remain firmly in place. In a tighter environment, there is more scrutiny being paid to CapEx and we take a closer look at how the hyperscalers are approaching this question with respect to data centre expansion.
Earnings season is in full swing and we also took a closer look at Digital Realty’s results, which also showed steadiness in core fundamentals.
Subscale platforms continue to expand globally. Vultr added new locations in the UK and MEA region, while WordPress provider WP Engine expanded into multiple regions on the back of public cloud. There were also more edge deployments. AWS Local Zones added another new global location in Auckland, New Zealand and Proximity Data Centres brought online a new IX in Birmingham.
Finally, there were a number of hyperscale data centre developments of note. In Indonesia, BDx began an expansion in Jakarta and Equinix established a JV to support its build in downtown Jakarta. Elsewhere in APAC, Colt DCS began construction on another facility in the Tokyo area. It was hard to miss that the activity was truly global in scape. EdgeConneX is expanding in Israel, Vantage is developing a second UK campus in London, Data4 is expanding in Madrid and EdgeCore is adding to its campus in Phoenix.
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