Check out the latest in deals, new development and innovative strategies in hyperscale, colocation, 5G, cloud migration, cloud services, edge compute, Hybrid IT, power, cooling and energy efficiency for February 3, 2020:
- Compass Datacenters Adds Second Dallas Area Campus: Compass Datacenters has purchased 225 acres in Red Oak, Texas. Just south of downtown Dallas, Compass Datacenters’ customers and prospects value the area as a key growth market. The Red Oak Campus will provide capacity to hyperscale, cloud and enterprise customers. Construction has already begun on the campus. The first data center, a six-megawatt facility, is scheduled for delivery in Q2 2020. The campus is supported by multiple carriers with access to diverse fiber routes and a dedicated high-voltage power substation. “Compass is a trusted partner to the hyperscale customers we work with, delivering custom, rack-ready facilities on an industry-leading timeline,” said Nancy Novak, Compass’ Senior Vice President of Construction. “Customers look to us to accelerate the delivery process in a cost-effective manner. Our Red Oak Campus is another example of delivering what our customers need, when they need it.”
- Top Infrastructure Engineer to Leave Facebook: Veteran Facebook executive Jay Parikh, who helped build out the social network’s global technical infrastructure during its biggest boom times, will be stepping down. Parikish announced the news in a Facebook post, writing “The past 10 years has undoubtedly redefined my expectations on what it means to scale and grow. When I first joined Facebook back in 2009, our entire engineering team sat in one building all on one floor, and we were buying off-the-shelf servers and renting data center space. We supported a few hundred million people mostly using the facebook.com website. I don’t think any of us could have imagined that we would now be supporting a global community of almost 3 billion people using our family of apps mostly on mobile phones.”
- Apple Holiday Earnings Hit Record Highs on Strong iPhone Sales: Apple reported record quarterly earnings and revenue to close out 2019, which beat expectations and sent their stock higher in extended trading. This according to MarketWatch. “The results were headlined by blockbuster quarter of iPhone sales and the first-ever $10 billion quarter for Apple’s wearables, home, and accessories category, which includes the Apple Watch and AirPods, both strong holiday sellers,” wrote the financial news outlet. “The company also delivered an upbeat view of the current quarter while indicating that the coronavirus outbreak gives the company less visibility than it would normally have. Apple has alternate supply sources for its manufacturers located in Wuhan but will be monitoring what happens with factories outside the city.”
- NA Data Centers Finds Leasing in 2019 Consistent with 2017 in Year-End Report: NA Data Centers has published its 2020 Real Estate Forecast summarizing data center trends in Northern Virginia for 2019. They found that overall leasing activity, although significantly lower than in 2018, was consistent with 2017. The slowdown in leasing can be directly attributed to the hyperscale tenants that Microsoft leads. Northern Virginia felt the strongest impact given the huge increase in the year-over-year speculative inventory. Renewals increased massively in 2019. Digital Realty reported 1.7 million square feet of renewals for the first nine months of 2019, 10% higher than in 2017 and 2018 combined. Renewals will continue during 2020, especially in Q1. Publicly traded companies reported that, on average, retention rates exceeded 81%. The overall slowdown in hyperscale leasing activity was partially offset by a rebound in enterprise activity. Publicly traded companies reported an overall drop in rental rates for multi-tenant data centers in 2019 through the third quarter. Smaller colocation customers are paying significantly higher rental rates, particularly for renewals.
- Synergy Research Group Report | Private Equity Firms Are Taking Over Data Center Market: New data from Synergy Research Group shows that in 2019 the number of data center-oriented M&A deals closed passed the 100 mark for the first time. This was up 6% from 2018 and more than double the numbers of deals closed in 2016. Over the last five years almost 350 deals have closed. One radical change in 2019 was the dramatic 50% increase in private equity deals, which more than offset a sharp 45% drop in M&A deals closed by public companies. While deal volume increased in 2019, the aggregate value of those deals declined due to a 24% reduction in average deal value, continuing a trend seen in 2018. 2017 marked a peak in average deal values thanks to three multi-billion dollar deals and three more valued at over a billion dollars each. The number of billion-dollar deals declined in 2018 and again in 2019.
The post CAPRE’s Digital Infrastructure Round Up for February 3, 2020: Compass Doubles Down on Dallas, Top Engineer Leaving Facebook, NA Data Centers + Synergy Research Reports appeared first on CAPRE MEDIA | CAPRE EVENTS.