M&A, data centre expansions, infrastructure rationalization, AI, deceleration, realignment
A busy week saw more from earnings season, some M&A, data centre expansions and we take our monthly look at some of the sector’s noteworthy trends and developments.
The hyperscale platforms reported and there were insights on growth trajectory and CapEx consumption. The past year saw a decline in CapEx directed to data centre infrastructure, but things are starting to move in the other direction. The same can be said for growth, though the rebound is going to be slower and more incremental. In the past week, we took a closer look at the results coming from AWS, Meta, Brookfield Infrastructure Partners and Equinix.
There was more strategic activity as Brookfield acquired the Cyxtera assets out of bankruptcy. It did not pick up the entire Cyxtera portfolio as the Canadian assets changed hands with another operator. This was yet another example of the realignment happening within the sector.
Data centre expansion activity continued to push forward. Green and Digital Realty are building in Zurich, while Cologix opened a new facility in Toronto, Edge Centres brought online more capacity in St. Louis, QTS is building in Ohio and STT GDC added another data centre in the Philippines.
Meanwhile, social media platform X, previously known as Twitter, shared some interesting data points about the cost savings it has realized from the optimization of its infrastructure across colocation, public cloud and on-premise.
Finally, we look at some of the key trends transpiring in the recent month. The colocation sector continues to separate, AI is gaining traction in Europe, public cloud growth deceleration is showing signs of stabilizing, while M&A activity continues to see realignment and GPU build patterns are starting to take shape.
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