Cloud, managed infrastructure earnings, hyperscale expansions, APAC, LatAm, M&A
It was a busy week that was highlighted by more results coming out of earnings season, new AI-oriented infrastructure services rolling off the assembly line, hyperscale expansions in global markets and some M&A.
The wider cloud infrastructure sector mow has more public comps than the data centre colocation category. Akamai has been a public company for a long time and now reports a meaningful cloud computing revenue segment that continues to grow. Cloudflare, like Akamai, has CDN roots, but shared more details about its growing cloud infrastructure business, and DigitalOcean is a pureplay cloud provider with a focus on the wider mass-market. All three of Akamai, Cloudflare and DigitalOcean continue to show growth, but saw slightly more revenue deceleration in the recent quarter, though there were signs across the board that things are starting to stabilize. Meanwhile, Rackspace also reported its results, which revealed more revenue attrition as it pushes through a period of transition, and on the mass-market side, Squarespace reported its 2Q23 results.
AI continues to create momentum for the sector’s demand profile and operators are positioning offerings to accommodate these requirements. Digital Realty released a high-density colocation service, while Rackspace has built out a new AI practice and now has a private cloud for AI offering enabled by Dell and NVIDIA.
There was significant hyperscale expansion activity across APAC and LatAm. Vantage Data Centers and GLP shared updates on progress in Japan, GDS brought online buildings in Johor, Malaysia, Equinix is developing its fourth data centre in Mumbai, India and PDG is close to finishing its latest build in Jakarta. In LatAm, KIO began construction of its first hyperscale data centre in Queretaro, Mexico.
Finally, there was some M&A activity of note as ThinkOn in Canada acquired a portfolio of backup and DR assets.
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