Digital Realty and Equinix both report strong Q4 results
The world’s two leading data centre operators are something of a barometer for the industry as a whole. In Q4, both Digital Realty and Equinix’s balance sheets reflected the ongoing transition of the data centre industry from the backbone of the technology sector to an essential utility underpinning the modern world.
Equinix finished 2020 on a high, pulling in approximately $6bn in revenue amounting to 8% revenue growth year-on-year - the 18th year of consecutive growth reported by the company.
Digital Realty also had a strong finish to the year, with its Q4 revenues reaching $1.1bn - a 4% growth over Q3 2020 and a 35% increase year-on-year.
"We closed 2020 with a strong finish, delivering record bookings for the full year," said Digital Realty Chief Executive Officer A. William Stein.
"This tremendous achievement is a testament to the consistent execution and growth across our global platform. Our book of business outside the Americas has expanded meaningfully, while our colocation and interconnection business represents a rapidly growing share as we continue to gain traction with enterprise customers as well as service providers. We look forward to building upon this momentum into 2021 and beyond, and we remain confident that our global platform will continue to deliver sustainable growth for all stakeholders."
Demand for data centre infrastructure skyrocketed over the course of 2020, continued through Q4 and looks set to keep on rising throughout 2021. Digital Realty signed new bookings amounting to an expected $130mn annually in Q4 alone.
Equinix had a staggeringly successful quarter in regard to its channel bookings, which accounted for 35% of its total Q4 bookings. The company’s total bookings were also, reportedly, at a record high, driven largely by telecom carriers upgrading their core and edge networks to address the changing digital usage patterns that arose from the pandemic.
“As we look ahead, I am as optimistic as ever about our business and the expanding opportunity to serve our customers, partners and shareholders as the world's digital infrastructure company,” commented Charles Meyers, President and CEO of Equinix.
GTR and SEGRO agree first UK data centre facility
SEGRO, a property investment and development company, has announced it has come to an agreement with the European data centre platform, Global Technical Realty (GTR) to construct its first UK-based data centre. SEGRO claims that the facility, which will span a total area of 400,711 sq ft, will be located in Slough and is to become “the largest data centre campus in the UK’s premier data centre and communications hub”.
What will SEGRO’s data centre facility be used for?
Supported by the global investment firm KKR, Global Technical Realty says it will be using the facility’s space on a 25-year term to operate bespoke data centres for high-growth global technology companies. The new facility aims to support the growing demand for third-party data centre provision amid ever-increasing growth in data usage and cloud services adoption.
Franek Sodzawiczny, CEO & Founder of GTR, said: “We are excited to be back in the UK alongside our partner KKR and look forward to working closely with SEGRO to deliver this state-of-the-art data centre campus. The data centre space is a fast-moving one. GTR was established to support its customers in providing a data centre solution wherever in the world there is a demand for it. We are delighted that the UK will become home to our flagship concept”.
James Craddock, Managing Director, Thames Valley at SEGRO, said: “We’re pleased to welcome GTR as the latest data centre operator to our thriving estate and our team of experts look forward to developing a stunning new facility for them and their customers. “Homeworking, data streaming, e-commerce and businesses’ reliance on cloud services have all grown during the pandemic, meaning demand for data centres is unabated.
“Slough Trading Estate is home to Europe’s largest data centre cluster and data centres are increasingly regarded as part of our key national infrastructure given the critical role they play in our daily lives”, he added.
The facility is expected to be delivered in two phases with operations beginning by Q4 of next year. The first phase plans to provide 132,575 sq ft of space phase two will create 268,136 sq ft of space. “Vacant possession of the site delivered to the customer by early 2022”, SEGRO said.
The project is also expected to create around 200 jobs during its construction, and a further 80 permanent roles once completed.