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Hyperscale leasing, Europe, Japan, APAC, earnings, layoffs, customer wins

  • March 20, 2023
  • Analyst: Philbert Shih

The recent week saw hyperscale leasing, expansion activity in Japan, more from earnings season and a number of interesting customer wins from across the ecosystem.

Hyperscale leasing has of course been focused on the public cloud infrastructure platforms. But there is an emerging tier of platforms from across the world of social media and scaled Internet content that will eventually consume like hyperscalers. ByteDance’s TikTok falls squarely in this category and it has been taking down colocation capacity in various markets. It has been building in Europe more concertedly and confirmed plans to expand with Green Mountain in Norway.

The APAC region continues to see expansion activity and Japan was a hotspot in the past week. Colt DCS brought online its new data centre in Osaka, while Digital Edge partnered with Hulic to develop a data centre in downtown Tokyo.

Earnings season has wound down and we took a closer look at the results coming from Alibaba. Things continue to be sluggish and there was no improvement on a sequential basis. Meanwhile, Akamai and OVH recently reported and we take a look at a number of interesting data points and insights from management with respect to CapEx and expansion plans. Despite current conditions, this group of providers show no signs of retrenchment.

The macroeconomic environment continues to take a toll on the tech sector and Atlassian Software was the latest to cut back its workforce. The cuts were interesting, however, due to the recalibration and emphasis on the cloud component of its overall strategy.

There were also number of customer wins of note. A UK government department renewed and expanded its AWS contractCloudflare also won a government project, while Accenture will help Telenor Norway with its company-wide digital transformation.

Finally, there were some notable appointments. EdgeCore has a new CEO and Equinix brought in a new MD in Spain.