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Hyperscale, Oracle, new entrants, FLAP, edge, bare metal

  • July 27, 2020
  • Analyst: Philbert Shih

It was another busy week across the sector as hyperscale remains a driving force in global markets across Europe and APAC.

Hyperscale continues to scale and mature and new deployment models are being tried as the clouds figure out the best way to serve customers of different shapes and sizes. To that end, Oracle Cloud introduced a new deployment scenario – a dedicated cloud region installed in an on-premise data centre – that is geared to the security, performance and compliance requirements of large enterprise customers. There could be some implications for Azure as well.

Hyperscale growth continues to juice demand for wholesale data centres, particularly in Europe and APAC, and new entrants are going after this opportunity. Stratus Data Centres is one of the new providers and it is targeting both these regions, but initially in the London and Frankfurt markets. It set up a partnership to finance these projects.

The FLAP markets in Europe have been growing steadily and Frankfurt, in particular, has seen significant activity of late. Interxion acquired land in Frankfurt for future development and expansion, while opening its MRS3 data centre in Marseille, France. CyrusOne has a considerable footprint in Frankfurt already and committed to another multi-MW expansion. Meanwhile, Vantage Data Centers is pushing into Europe and in the past week secured more investment capital.

Hyperscale is driving data centre growth, but bare metal hosters and MSPs are also setting up global footprints. NetActuate in North Carolina and Hivelocity in Florida have locations in dozens of markets around the world. NetActuate’s newest location is in Madrid, Spain, while HiVelocity unveiled a slew of new locations.

M&A activity has been up and down in this pandemic environment. The past few weeks however, did see a number of transactions. On top of the Vantage deal, there was a data centre transaction in Brazil, while Web.com and Liquid Web completed acquisitions.

Finally, QTS and EdgeConneX were busy expanding in strategic locations with proximity to subsea cables. EdgeConneX revealed its expansion plans in Portland, while QTS launched its New Jersey NAP in Piscataway.

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