Check out the latest in deals, development and disruptive technology in the data center industry for January 8, 2020:
DataBank Announces $185 Million USD Equity Investment from Colony Capital: Colony Capital has made a $185 million investment into DataBank through the purchase of secondary equity interests from existing investors Edgewater Funds and Allstate. Allstate will retain 50% of its interests and continue as a DataBank investor, while Edgewater will fully exit from its position. Nuveen will also continue as an important investor in DataBank, holding its original stake. The transaction represents Colony Capital’s inaugural direct balance sheet investment in digital real estate and its first step in investing in the edge/colocation data center sector. Edgewater’s Board Member will step down and be replaced by Justin Chang, Colony’s Global Head of Private Equity.
Amazon pays $73 Million USD for More Land in Loudoun County: News has broke that Amazon is gobbling up more land in Loudoun County. While COPT, the primary landlord of AWS is hard at work deploying seven data centers for the tech behemoth, they have reported shelled out $73 Million USD for yet another land parcel, this time in Chantilly, VA. A subsidiary of Amazon, Amazon Data Services, is the official buyer, according to the Washington Business Journal, who broke the news.
Cloud Goes from 0 to 100 in Ten Years while Enterprise Data Center Spending Stagnates: Synergy Research Group’s detailed review of enterprise IT spending over the last ten years shows that annual spending on cloud infrastructure services has gone from virtually zero to almost $100 billion. Meanwhile enterprise spending on data center hardware and software has been stagnant through much of the decade. Data center spending did jump in 2018 even though server unit shipments remained flat, thanks to more richly configured and higher-priced servers. Despite that 2018 increase in data center spending, growth in cloud spending did not miss a beat in 2018 and then grew again by almost 40% in 2019. Over the whole decade, average annual spending growth for data center was 4% (mostly due to the first three years) and for cloud services was 56%. 2019 will mark the first time that enterprises spend more on cloud services (IaaS, PaaS and hosted private cloud) than they do on data center equipment.
CBRE Enhances Occupier Advisory Offering with Acquisition of NEF: CBRE has announced the acquisition of New England Fiber, Inc. (NEF), a leading telecommunications and network infrastructure advisory services firm. NEF specializes in helping occupiers optimize network deployment, providing solutions spanning network design, procurement and installation management.
Founded in 2004 in Newton, Massachusetts, NEF serves large and midsized enterprises in multiple industries and vertical markets. NEF helps occupiers implement the most efficient, resilient and cost-effective network environments. These are increasingly important factors in making real estate decisions for data centers and other technology-heavy sites as well as other traditional enterprise occupiers given the growing reliance on connectivity in the workplace.
Cisco Releases Data Center Network Manager Updates in Response to Three Vulnerabilities: Cisco has announced that all versions of DCNM earlier than 11.3(1) for Windows, Linux, and virtual appliance platforms must update their software immediately to avoid “an unauthenticated, remote attacker to bypass authentication and execute arbitrary actions with administrative privileges on an affected device.” Cisco has cautioned that there is no workaround for these issues, and it is incumbent upon clients to upgrade at their earliest opportunity.