Data Centers will Emerge as Critical Infrastructure Post-COVID-19

Amid | June 10, 2020

  • The world’s largest investors are focusing on the market for digital infrastructure, citing extraordinary demand for capital to fuel the data economy.

  • The data center business is also positioned to benefit from a range of emerging technologies including AI, the Internet of Things, 5G wireless, augmented reality.

  • Investment interest in data centers has been boosted by the growth of hyperscale computing, where the tenant is a giant corporation with excellent credit, lowering the risk profile for investors.


The world’s largest investors are focusing on the market for digital infrastructure, citing extraordinary demand for capital to fuel the data economy. Investor interest remains high even amid the COVID-19 crisis, according to investment bankers and securities analysts, who say the pandemic of 2020 has accelerated some activity. Leading players have raced to close deals and raise capital amid the economic chaos from lockdowns.


Investment interest in data centers has been boosted by the growth of hyperscale computing, where the tenant is a giant corporation with excellent credit, lowering the risk profile for investors. The data center business is also positioned to benefit from a range of emerging technologies including AI, the Internet of Things, 5G wireless, augmented reality and autonomous cars.



Read more: COMPARING SIX LEADING CONVERGED INFRASTRUCTURE VENDORS' PRODUCT

Digital infrastructure, citing extraordinary demand for capital to fuel the data economy. Investor interest remains high even amid the COVID-19 crisis, according to investment bankers and securities analysts.

~ Data Center Market


Here’s a summary of our recent coverage of equity and debt financings in the data center industry. Be sure to follow our Data Center Finance channel for the latest news for data center investors. Pandemic Could Drive Data Center M&A, Reshaping Industry Landscape: Economic disruptions are times of both peril and opportunity. We look at how the COVID-19 pandemic may impact the active world of data center mergers & acquisitions. Financial strength will drive the action.


KKR Puts $1 Billion Behind New Data Center Development Platform: KKR is the latest marquee investing firm to enter the data center industry, forming Global Technical Realty (GTR) to develop more than $2.5 billion in data centers across Europe in the coming years. Aligned Expands Credit Line to Fund More Data Center Growth: Amid soaring demand for digital infrastructure, data center developer Aligned has increased its secured credit facility to $575 million, citing “consistently strong” customer demand.


Amid soaring demand for digital infrastructure, data center developer Aligned has increased its secured credit facility to $575 million, citing “consistently strong” customer demand.


Equinix Goes Shopping, Selling Stock to Fund $750M BCE Deal: Colocation giant Equinix sold $1.25 billion in common stock to fund its $750 million acquisition of a portfolio of 25 data centers from Bell Canada. Sabey Data Centers Lines Up $800 Million in Securitized Debt: Sabey Data Centers has lined up $800 million in funding, using securitized notes to arrange low-cost capital for continued expansion of the company’s U.S. data center campuses. TierPoint Arranges $320 Million in Equity Funding From Investor Group : Three global infrastructure funds will invest $320 million in Tierpoint, a regional data center provider that has built a national network through a series of acquisitions.


Investor Interest in Data Centers Still High, As Area Deal Valuations: Investor interest in the data center sector remains high, and the wave of M&A is likely to continue in 2020. But deal values are high, prompting some investors to tread carefully and adjust their strategies. This includes investments in new facilities as well as expansion projects. Many enterprises in developed countries are migrating to colocation data centers to operate hybrid infrastructure services. In the US region, colocation service providers are making substantial contributions to hyperscale data center projects.


Read more: NEED FOR EASY IT INFRASTRUCTURE MANAGEMENT IS DRIVING THE ADVANCED STRUCTURED CABLING MARKET

Spotlight

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Spotlight

In an increasingly perilous web environment, server-level security is an imperative. Your server and IT infrastructure are vulnerable to numerous threats on the web, and thus, comprehensive security is a must. Neglecting security may come with detrimental consequences. It’s a costly risk that can hurt your brand and its stakeholders. As most business transactions are now done electronically, prioritizing server security ensures that your data and your customers’ information are protected. To keep your servers in tip-top condition, here are some recommendations on how you can effectively address the security needs of your server infrastructure.

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NTT Opens New Data Center in South Africa to Support Growing Digital Economy

NTT Ltd. | October 27, 2022

NTT Ltd., a leading IT infrastructure and services company, today announced the opening of its latest data center in Johannesburg, South Africa. Johannesburg 1 Data Center is part of NTT’s expansion into the African continent with a capacity of 12MW covering 6,000m² of IT space once fully built out. The technical infrastructure is supported by N+1 uninterruptible power supply systems (UPS), N+1 generator backup, and highly redundant cooling systems. This will provide clients with dedicated sustainable infrastructure, operational control and the design flexibility required to support their high-performance needs. The facility will cater to hyperscalers and enterprises, providing them with an opportunity to use NTT’s full ICT stack of services, including managed hybrid cloud, network management, collaboration, security, and application monitoring. Africa is experiencing a digital boom, with a population expected to double by 2050. Estimates show that 615 million users in sub-Saharan Africa will subscribe to mobile services by 2025, a 24% increase from 2020. This growth and reliance on technology is fueling digital transformation initiatives and demand for high-performing data center space. NTT is planning to accelerate its data center footprint in Johannesburg and other African cities to support this growth over the next several years. The new facility uses a closed-loop chilled water system with air-cooled chillers, meaning that the water running through the cooling systems isn’t evaporated. This reduces the threat of potential drought water restrictions and allows the data center to achieve low power usage effectiveness (PUE) and water usage effectiveness (WUE). “We’re incredibly proud to be investing in Johannesburg and extending our global data center footprint to South Africa. The country forms a significant part of NTT’s growth strategy as we continue to support Africa’s digital transformation. The opening of Johannesburg 1 will contribute towards the economic growth and social development of the region, as our clients shape the country of tomorrow.” Florian Winkler, CEO, Global Data Centers EMEA, NTT Ltd “Our presence in Africa is underpinned by the significant digital change we’re seeing across the continent. Companies providing new digital services need data center space with high power density, global connectivity, carrier neutrality, cloud network access, and on-site support to ensure they can continue to grow,” added Michael Abendanon, Head of MEA, Global Data Centers EMEA, NTT Ltd. NTT is recognized as one of the leading data center businesses with recent openings in Madrid, Jakarta, Navi Mumbai, and Berlin, with further expansions planned in Ho Chi Minh City, Prince William County, Virginia and Cyberjaya. The data centers will align with NTT’s commitment to achieve net-zero emissions across its data center operations by 2030 and the complete value chain by 2040. NTT is focused on ensuring its portfolio is powered by renewable energy by 2030 and that it applies energy efficiency measures where required. About NTT Ltd. As part of NTT DATA, a USD 30 billion IT services provider, NTT Ltd. is a leading IT infrastructure and services company serving 65% of the Fortune Global 500 and more than 75% of the Fortune Global 100. We lay the foundation for organizations’ edge-to-cloud networking ecosystem, simplify the complexity of their workloads across multicloud environments, and innovate at the edge of their IT environments where networks, cloud and applications converge. We offer tailored infrastructure and ensure consistent best practices in design and operations across all of our secure, scalable and customizable data centers. On the journey towards a software-defined future, we support organizations with our platform-delivered infrastructure services. We enable a connected future.

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ReadyWorks Partners with Unisys on Digital Workplace and Cloud, Applications and Infrastructure Solutions

ReadyWorks | October 12, 2022

ReadyWorks, a digital platform conductor (DPC) provider, today announced a partnership with Unisys Corporation (NYSE: UIS) through which the companies will deliver digital workplace solutions along with cloud, applications and infrastructure solutions. Unisys brings its deep expertise in delivering digital workplace solutions and hybrid and multi-cloud solutions to the partnership, providing a holistic and efficient cloud experience for organizations. ReadyWorks enhances Unisys' capabilities to: Deliver cloud migrations faster. ReadyWorks uses intelligent automation to collect, clean, and analyze information and then uses that information to orchestrate and transfer workflows and processes to the cloud. Coupled with Unisys' expertise in cloud, applications and infrastructure solutions, these enhanced capabilities help organizations achieve maximum value while minimizing risk and cost of operational inefficiencies. Enhance digital workplace experiences. ReadyWorks synthesizes information from the tools and systems used to monitor employee experience, helping companies identify and proactively address potential issues. Unisys and ReadyWorks provide unified endpoint management solutions that improve the end-user experience and enhance productivity while helping companies identify and mitigate potential security threats through every stage of IT asset lifecycle management. This partnership is aimed to help companies achieve digital transformation goals faster while reducing risk and cost. Unisys uses the ReadyWorks platform to provide an accurate real-time view of organizations' IT estate, automate and orchestrate human and system workflows and improve program transparency with an immediate view of program status. "The hybrid workplace is here to stay, and in order for businesses to succeed in this digital environment, it is vital that there are options available that reduce the cost and risks associated with this shift. "We look forward to collaborating closely with Unisys and being able to harness the strengths and capabilities of both companies to help organizations meet strategic business objectives." Paul Deur, ReadyWorks Co-Founder and Co-CEO "Our partnership with ReadyWorks enables us to deliver capabilities for clients by improving the employee experience to enhance productivity," said Leon Gilbert, senior vice president and general manager, Digital Workplace Solutions, Unisys. "This partnership is an opportunity to continue innovating for our clients in more efficient ways and helping them achieve digital transformation goals faster." About ReadyWorks ReadyWorks is a digital platform conductor (DPC), an emerging technology that leverages intelligent automation to reduce the risk and cost of IT infrastructure transformation. ReadyWorks fully orchestrates complex IT infrastructure transformation programs and provides companies with a way to ensure business continuity as these programs are carried out. Unlike legacy infrastructure management tools, which create data silos and introduce risk into IT programs, ReadyWorks serves as a central command and control platform to orchestrate these tools to deliver transformational business outcomes. The platform analyzes information about the entire IT estate – endpoints, users, applications, and all their interdependencies – defines the rules for change, and uses intelligent automation to implement those changes. ReadyWorks provides IT teams with a holistic view of the environment, how future changes will impact that environment, and how and when those changes should be made so that users and business operations are not adversely impacted. For more information, visit www.ReadyWorks.com and follow us on Twitter and LinkedIn. About Unisys Unisys is a technology solutions company that delivers successful outcomes for the most demanding organizations. Unisys offerings include digital workplace solutions, cloud, applications and infrastructure solutions, enterprise computing solutions and business process solutions.

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Semtech Unveils ClearEdge® 25G Quad CDR Transmitter for Data Center and Wireless Long-Reach Applications

Semtech | September 19, 2022

Semtech Corporation, a leading global supplier of high performance analog and mixed-signal semiconductors and advanced algorithms, announced that Semtech’s new ClearEdge® CDR Transmitter solution, the GN2105S, is available for sampling. The ClearEdge GN2105S is for 4x25G data center and wireless long-reach (LR) optical links. The GN2105S is a quad channel 25G NRZ CDRs with integrated high-performance DC-coupled Direct Modulated Laser (DML) drivers offering superior transmitter (Tx) performance with various low cost and low bandwidth laser with the lowest possible power. “Building upon Semtech’s robust and proven 25G ClearEdge technology, the GN2105S has a new generation DML driver and offers proprietary laser compensation to enable a wide range of low-cost laser options for data center and wireless optical interconnects,” said Tim Vang, vice president, marketing and applications for Semtech’s Signal Integrity Products Group. “Due to the complementary nature of the ClearEdge GN2105S and GN2110S, Semtech is offering the ClearEdge integrated circuit (IC) bundle (GN2105S and GN2110S) assisting our optical module customers to differentiate their products with maximum Tx and receiver (Rx) performance, while achieving industry leading low power.” The ClearEdge GN2105S is now available for sampling and can be paired with the GN2110S receiver for a complete 100G PSM4/CWDM4/LR4 solution. Semtech applications engineering teams are available to support immediate design-in activities to enable rapid adoption of Semtech’s solution. Semtech’s data center ClearEdge CDR portfolio includes: New - GN2105S: Quad channel 25G NRZ CDRs with integrated DC-coupled DML drivers GN2110S: Quad CDR with integrated TIA GN2105B: Quad CDR with integrated DML laser drivers The ClearEdge GN2105S will be demonstrated at the Semtech booth #322 during the European Conference on Optical Communication (ECOC) 2022, Sept. 18-22, in Basel, Switzerland. About Semtech’s Optical Products Semtech’s optical networking product platforms provide high-performance signal integrity for optical module solutions used by leading companies in the data center/enterprise networking, wireless infrastructure and passive optical network/Fiber to the X markets. About Semtech Semtech Corporation is a leading global supplier of high performance analog and mixed-signal semiconductors and advanced algorithms for infrastructure, high-end consumer and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The Company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction. Publicly traded since 1967, Semtech is listed on the NASDAQ Global Select Market under the symbol SMTC.

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