Switch begins multi-megawatt expansion of the Citadel
Switch, an exascale data centre operator based in the US, has announced the signing of a multi-year, multi-million dollar, multi-megawatt (MW) contract with one of its existing clients.
This is the second major agreement this year, Switch having already completed a renewal and expansion order with a leading semiconductor manufacturer worth approximately $7mn in annual revenue in Q3.
The latest expansion for Switch’s e-commerce client will reportedly add a further 5MW commitment across Switch’s Core Campus and Citadel Campus, which is expected to contribute annualized revenue over $11mn.
In response to these sizable deals, Switch is accelerating its build out of the TAHOE RENO 2 data centre and beginning construction of a third data centre on the campus. The existing hyperscale facility, TAHOE RENO 1, is now more than 80% committed to clients.
Originally launched in February of 2017, the Citadel campus is one of four exascale facilities that Switch operates across the US, dividing the country into four major latency zones.
Upon spinning up, the Citadel’s TAHOE RENO 1 had a total capacity of 130MW across 1.3mn square feet. At full build out, the campus will have a monumental footprint of more than 7mn square feet, and deliver over 600MW of IT capacity, making it the largest and most advanced data centre campus in the world.
In accordance with Switch’s design philosophy, the additional data centres will be powered using 100% renewable energy, which is largely driven by one of the largest solar power purchase projects in the world.
"Accelerating development at our Citadel Campus reflects the strong customer demand for our strategically located, differentiated Tier 5 Platinum enterprise class exascale infrastructure," said "This ongoing development means new job creation and economic investment for Nevada's economy."
The ongoing COVID-19 crisis has driven demand for cloud and colocation services over the past year. In its Q3 earnings report, Switch announced that it had managed to maintain positive earnings growth in comparison to pre-pandemic 2019. The company reported total Q3 revenues of $128.8mn, representing a 5% increase year-on-year.
"Switch's strong third quarter results and bookings performance reflect our unrelenting drive to deliver superior value to customers and our commitment to sustaining profitable growth in 2020 and beyond," said Thomas Morton, President of Switch. "Customer demand remains robust across the four Primes, and the continued expansion from several of our largest customers demonstrates an appreciation for the value proposition delivered by Switch's technology ecosystems."
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.