Market News

February Roundup: Top Data Center News Stories

Market movement, growth and innovation; February was jam-packed with positive headlines across the data center sector worldwide. These are the top data center news stories that piqued our interest last month:NORTH AMERICALocal New York Data Hub Continues to GrowAmerica’s largest bank, JP Morgan Chase, plans to build a US $100m data center on a 61-acre site located in Orangetown, New York. Subject to approval, the development will first require the demolition of over 40 abandoned buildings, including the former Rockland State Hospital, and will create more than seventy jobs in addition to the contractual work for construction and cleaning.The new facility would then make Orangetown one of the largest data center campus’ in the United States, which already hosts a US $710m Bloomberg data center and fifteenfortyseven’s 230,000 square foot facility.Equinix Data Centers a Little More Spacious with LinkedIn ExitSocial media giant, LinkedIn, has consolidated majority of its retail colocation footprint and followed the likes of Facebook, Google and Microsoft by moving to just a small number of large wholesale facilities. The loss of 1,300 cabinets across the Americas has had a significant impact on Equinix’s revenue in quarter one which took a US $6.8m hit.At the same time however, Equinix announced a 33% year-on-year revenue increase for 2016, thanks mostly to the acquisitions of Telecity Group and Bit-isle. CEO Steve Smith, also added: “The transformative acquisition of 2017 will be our US $3.6b acquisition of Verizon’s US and Latin America data center portfolio, which we expect to close midyear.”Whilst the overall loss of LinkedIn has sent Equinix sales teams into overdrive, it didn’t stop the company persevering with plans to spend US $175m on data center constructions in Chicago, Toronto, Amsterdam, Rio de Janeiro and Dubai.Microsoft Going Under (the Water) with their Data CentersThe data center sector consumes as much power as entire countries and has a carbon footprint equivalent to the airline industry. This is of course an important consideration when an operator’s environmental strategy and profit margins are under the public microscope (especially by its shareholders).Given the data center sector is experiencing exponential growth that is tipped to accelerate, data center operators worldwide are scrambling to find innovative ways to solve environmental sustainability concerns and reduce energy costs associated with power and cooling.A Microsoft engineering team in the US believes it has come up with a solution to combat both issues with an innovative strategy that involves submerging data center pods 50-200 meters below the sea to take advantage of the naturally cooler temperatures that the ocean offers. Whilst for many this would be considered an outlandish idea, for Microsoft it would present an even lower energy overhead than free-air cooling, reduced operational costs due to no on-site staffing and a staggering 90 day ‘construction’ turnaround time. We love this!EUROPEInterxion Grows Presence in Frankfurt, London, Stockholm and AmsterdamWith 45 data centers staggered across 11 European countries, Interxion already had a strong foothold in Europe before its decision in February to pour US $87.8m into three new data center facilities in Frankfurt, London and Stockholm. A week later, the company also announced the acquisition of an Amsterdam facility owned by Vancis Holding BV.Interxion explained that the announcements were in response to continued customer demand and also made a point that interest in its services in London have “continued since last summer’s Brexit vote.”The data center in Frankfurt will be its twelfth facility in the city, with the London and Stockholm expansion being the company's third and fifth in the respective cities.London, Amsterdam and Frankfurt Claim Top Three Spots in Colocation Ecosystem RankingsWhilst the United States is arguably the largest data center market in the world, its 2,000+ facilities were ‘trumped’ by the connectivity of London, Amsterdam and Frankfurt who took the top three spots in Cloudscene’s 2017 Global Top Ten Colocation Ecosystems ranking. Paris also made the list coming in at fifth, just beaten by Washington DC.Based on both a data center density and connectivity rating, the ranking combines the total number of colocation facilities and the total number of Points of Presence (PoPs) in a given region to generate an overall market score.Amsterdam’s prominence in the list is no surprise given CBRE’s latest report which reveals that the city was the first market in history to see more than 50MW of take-up in a single year.IO UK’s Data Center Business Sold to EquinixDespite only opening the facility in 2015, IO UK has announced the sale of its Slough-based data center operating business to Equinix who will rename the data center to LD10. Joining LD4, LD5 and LD6, the data centers on the Equinix Slough Campus are at the center of Europe’s largest financial trading community with approximately 25% of European equities trades originating from the location.Prior to the purchase, IO UK reported revenues of US $1.4m. Equinix’s president for EMEA, Eric Schwartz, said “London remains a global economic engine, with leading enterprises and cloud service providers making it a primary hub for IT infrastructure.”ASIA PACIFICST Telemedia Adds Another Three Data Centers to Singapore PortfolioAs part of its strategic joint venture partnership with Tata Communications, ST Telemedia has completed the purchase of three new colocation facilities in Singapore. Adding to its existing facilities, STT Defu and STT MediaHub, the new colocation data centers will bring the global carrier neutral operator’s presence to a total of 540,000 square feet across the country.Brandishing Singapore as “a key IT and innovation hub for Asia and the world”, ST Telemedia said that strong customer demand in the region was driven by services like cloud computing and digital media. The addition of STT Tai Seng will further strengthen ST Telemedia’s presence which consists of a portfolio of 45 data centers across Singapore, India, China and the UK.Superloop Completes Marine Installation of TKO ExpressThe marine installation of the world’s largest undersea cable, TKO Express, was completed by dark fibre connectivity provider Superloop in February. The arrival of the first domestic submarine cable to directly link Chai Wan and Tseung Kwan O (TKO) Industrial Estate was the result of two years hard work and will create the first truly geographical diverse path to the Hong Kong Stock Exchange and other critical data center locations.The cable is expected to be available to customers from March 2017, once the testing and commissioning of TKO Express into Hong Kong's 2,000 fibre core backbone network is complete.Alibaba Cloud Doubles Capacity in Hong KongAPAC’s increasing demand for cloud services has not only driven Alibaba Cloud’s 115% revenue growth from 2015-2016, it has led to the need to double the capacity of its data center in the regional financial hub of Hong Kong.Expected to help expand the company’s global network coverage, Alibaba Cloud launched new data centers in Japan, Germany, the Middle East and Australia just last year and in just two short years, Alibaba Cloud has become one of the largest public cloud providers in the APAC region.

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