Digital Realty exec, Goldman Sachs launch Global Compute
The Merchant Banking Division of Goldman Sachs has invested half a billion dollars in a new data infrastructure company start-up, called Global Compute, which aims to build and buy $1.5 bn of properties internationally - starting in Poland.
Global Compute is a start-up company led by CEO and data industry expert and his executive data infrastructure management team. The enterprise will initially make headway in the rapidly growing Central and Eastern Europe data centre market following recent, regional acquisitions.
Earlier this month (October 19th) Global Compute acquired ATM S.A. (“ATM”), Poland’s most prominent data centre and communications infrastructure business. The world-class data centre assets are based in Warsaw and provide a communication infrastructure footprint, customer base and strong reputation in the market.
The initial investment injection by Goldman Sachs of $500mn will enable $1.5bn further near-term investments to be released to develop a presence in North America, Latin America, Asia Pacific and Europe. The company strategy is to grow and scale through organic development and further acquisitions, especially in regions where there is potential for data infrastructure growth.
Speaking of the Goldman Sachs alliance, Peterson said, “Goldman Sachs is the perfect partner for us as we pursue global investment opportunities in the data infrastructure space. Our combined global pedigrees and networks, together with GS MBD’s access to ample growth capital, will allow the Global Compute platform to not only serve the critical needs of our customers around the world, but also create and unlock value for our partners.”
He added, “Our initial investment in ATM S.A. is an ideal illustration of this collaboration. We are extremely enthusiastic about our partnership with Goldman Sachs enabling us to provide creative solutions for our global customers.”
Peterson’s experienced management team, which has specialised experience in data centre infrastructure, customer relations and capability management, will also concentrate on the growing colocation deployment, compute, storage, and connectivity requirements of the world’s biggest technology enterprises.
As the new CEO and co-founder of Global Compute, Peterson is best known for his previous role as CIO and co-founder of Digital Realty. With more than 18 years’ experience in the data centre industry, Peterson is also recognised for his dynamic attitude towards investment activity and leading $17bn of organic growth and M&A during his previous tenure. He is joined by , a former DLR co-founder, and , also a former senior DLR executive.
, Managing Director of Goldman Sachs, said the opportunity to invest in the data centre service industry was helping to meet a global demand in data storage. “We are incredibly excited about partnering with Scott and the Global Compute team. We see a tremendous opportunity in the data centre space driven by increasing computing and storage demand and we believe the Global Compute team, backed by the global resources of Goldman Sachs, is uniquely positioned to deliver world class solutions to meet that demand.”
Equinix: Digital leaders expect changes to working patterns
A global report released by Equinix has revealed that digital leaders expect long-term changes to the way people work.
As part of the report, the data infrastructure company surveyed 2,600 IT decision-makers from several different businesses spanning 26 countries in the Americas, Asia-Pacific and EMEA regions. The study also highlighted the biggest technology trends affecting global businesses and how the COVID-19 pandemic has impacted digital infrastructure plans.
Talking about companies’ expansion strategies, Claire Macland, Senior Vice President of Global Marketing at Equinix, said: “Many companies are now investing more in their digital infrastructure to enable them to embrace a hybrid working model and thrive in the new world of work we all find ourselves in.
“Despite headwinds in many sectors, many organizations are continuing to expand physically and virtually into new markets and regions around the world”, she said.
The report drew the following conclusions:
- 64% of the 2,600 digital leaders surveyed believed there will be “long-term changes to both how and where people will work in the future.
- 57% of global companies intend to expand into new regions despite the effects of the pandemic
- 51% of businesses worldwide say they have rearchitected their IT infrastructure so that it can meet the demands of remote and hybrid working. Digital transformation has also been accelerated due to an increase in businesses’ technology budgets.
How might digital transformation be affected post-pandemic?
COVID-19 has demanded that companies make several changes to the way that they operate, including digital transformation. According to the study, 47% of those surveyed reported that they have accelerated their digital transformation plans because of the Coronavirus pandemic. A further 42% of organisations said their budgets have increased to keep up with the growth of digital transformation.
Another change in adapting to the pandemic was to businesses’ IT strategies with six in 10 companies saying that it has been revised in response to the situation. 58% said they are looking to invest in technology to “improve agility’ post-COVID.
When asked about their priorities for their digital strategy, 80% of respondents said that digitising their infrastructure was of utmost importance, while 57% viewed interconnection as a ‘key facilitator’ of digital transformation.
"This increasing focus on digitization and expansion is one of the reasons why Equinix has continued to invest in its own growth. We completed 16 new expansions in 2020—our most active build year ever—and expect to continue to evolve Platform Equinix to support our customers as they continue on their digital transformation journey”, said Claire Macland.
Potential concerns disperse over expansion plans being halted by COVID-19
The study has also revealed that organisations’ previous concerns that the pandemic will negatively affect their business expansion plans have been lessened.
57% of businesses have said that they “still have plans” to expand into new regions and of that percentage, nearly two-thirds (63%) plan to do so virtually instead of investing in physical IT infrastructure.
The full Equinix report can be found here.