Equinix grows Q1 revenues by 10%; Digital Realty by 33%
It’s no secret that the data centre industry is growing, and fast - from the hyperscale all the way to the edge. A report released this week by Canalys found that global cloud infrastructure spending rose by 35%, up to $41.8bn in Q1 of 2021 alone. While we don’t have industry spend figures for edge data centres, the market is similarly booming, with an expected CAGR of around 12.5% between 2020 and 2024.
Equinix, as one of the world’s leading data centre brands (with fingers in both the hyperscale and edge pies) is reflecting this wider trend through its earnings and revenue figures.
The Californian data centre operator announced its , revealing that, year-on-year, it managed to grow its revenues from the past few months by a full 10% - representing the company’s 73rd consecutive quarter or revenue growth.
Equinix also reveals that it is now the market leader for colocation in the Americas, EMEA and APAC after taking the top spot in Asia during the quarter.
"We had a great start to the year, and as businesses continue to navigate towards a post-pandemic world, Equinix is uniquely well-positioned. Digital transformation continues to accelerate, and businesses across a broad range of verticals are recognising that their infrastructure can be a key source of competitive advantage in an increasingly digital world,” commented Equinix’s President and CEO, Charles Meyers.
He added: “Q1 also marked a milestone for Equinix as we are now the market leader in retail colocation in all three regions of the world, taking the number-one spot in Asia-Pacific for the first time. Demand is strong with global IT spend expected to rebound above pre-pandemic levels as enterprises increase hybrid cloud spending, and service providers build out their delivery platforms to tap into this demand."
Meyers also revealed that Equinix’s progress isn’t showing any signs of slowing down. The data centre company has a reported 36 major projects underway across 28 markets and 19 countries - making 2021 one of its most active build years to date. This is likely being contributed to by the whiplash effect being felt throughout the industry this year, as new projects and old ones delayed by the pandemic are set to proceed side by side.
Digital Realty reported revenues for the first quarter of 2021 of $1.1bn, a 3% increase from the previous quarter and a 32% increase from the same quarter last year.
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.