Data Centers, CoLo, REITs

By pjain      Published June 22, 2021, 7 p.m. in blog AI-Analytics-Data   

Data Center Investing BPR

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Profit Margins of Inde-DCs vs Big Clouds

Data centers, and highlight their business models that have proven to be more durable and earnings that are less volatile than most sectors. Even as Data Centers tear-to-date have meaningfully outperformed both the REIT sector and the broader equity markets (DCs +20.8% vs. RMS –17.9% and the S&P 500 +1.4%), we continue to recommend our Buy rated names as enterprises accelerate their evolution from traditional to digital businesses that can utilize new tools to dynamically scale their IT infrastructure, adopt hybrid multi-cloud architectures, and interconnect with strategic business partners. We believe second quarter numbers will be generally positive and at least in-line to slightly above expectations as bookings sustain and expect this positive momentum to build as we move throughout the year (offering potential for slightly raised 2020 outlooks, but also a good set-up for numbers to move higher in 2021. - SRC: Stifel

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Data Centers Full Service Majors

LUMN Xx

Revenue: $22 Billion Number of Employees: 43,000 Number of Data Centers: 350

  • ABout Lumen Tech/CenturyLink = is it high debt/bankrupt? - Headquarter: Monroe, Louisiana
  • Residential and small business customers with high-speed Internet, cable, voice, television, and TV services.

RXT - acq?

Rackspace Technology

Rackspace Technology returned to the public market on 5 August when it arrived on the Nasdaq. After four years as a private company under the ownership of private equity firm Apollo, the cloud and infrastructure specialist priced its initial public offering (IPO) at $21 a share – on the low end of its target range of $21 to $24 per share – raising $704 million in the process.

Stock prices for the company fell by as much as 20% on the first day of trading, making it the worst performing IPO of $100 million or more on a U.S. exchange this year, according to data compiled by Bloomberg.

Going public during a pandemic isn't easy, given how the market can drag shares down at a moment's notice -- but going public for the second time can be even more difficult. Just ask Rackspace, which went public back in 2008, was taken private in 2016 by Apollo Global Management and is now back on the market as of Aug. 4. The company provides cloud computing services along with old-fashioned managed hosting, giving it a nice balance and allowing Rackspace to offer customers a wide range of services. Perhaps that's why total bookings grew 107% year over year in the second quarter, while revenue increased 9%. Although the bottom line lagged last quarter due to one-off charges, analysts covering the newly public company are unanimously bullish on Rackspace, and have given the company an average price target of $27.67, offering roughly 47% upside.

?PVT $1.1b

Revenue: $1.1 Billion Number of Employees: 1,400 Number of Data Centers: 62

  • Cyxtera Technologies Headquarter: Coral Gables, Florida
  • Range of new, cloud- and hybrid-ready security and analytics solutions, Cyxtera Technologies integrates a global network with best-in-class data centers, supplying more than 3,500 businesses with an integrated data center solution and federal government agencies in the United States. Cyxtera provides data center colocation, enterprise bare metal, and interconnectivity services to 62 data centers across the world, 29 markets, and 600 networks.

EQIX $4.4b - REIT+COLO

Revenue: $4.4 Billion Number of Employees: 7,903 Number of Data Centers: 210

  • About Equinix, Headquarter: Redwood City, California
  • operates data centers in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, Miami, New York, Philadelphia, Seattle, Silicon Valley, and Washington D.C.

IRM R7 $4.2b

The first real estate investment trust, or REIT, on this list, Iron Mountain specializes in storage and information management services. The company claims to store and protect $18 billion in assets from more than 225,000 organizations globally. IRM's legal structure as a REIT allows it to avoid double taxation. It must pay out 90% of taxable income to its shareholders, but in exchange, it pays no corporate taxes. Investors willing to prioritize steady income over meaningful growth potential should consider Iron Mountain. Shares tend to trade within a relatively narrow range and currently yield 8.1%.

Revenue: $4.2b Number of Employees: 7,922 Number of Data Centers: 15

  • Iron Mountain,Headquarter: Boston, Massachusetts -A multinational organization that stores, preserves, and maintains data and assets. The company offers hyper-scale ready colocation services with over 3.5 million square feet in 15 data centers in five countries. Iron Mountain colocation facilities are sustainable and provide convenient access to the carriers, cloud providers, exchanges, and IT services required for digital transformation.

Data Centers/IT - Proper REITs /Colo - BYoHw

DLR - REIT $2.5b

  • Revenue: $2.5 Billion Number of Employees: 1,860 Number of Data Centers: 280

  • About Digital Realty, Headquarter: San Francisco, California

  • Network infrastructure, collocation, and interconnection strategies ranging from cloud and IT services, communications, and social networking, to financial services, manufacturing, energy, healthcare, and consumer goods. With 280 facilities in 47 meters across 22 countries on 6 continents, Digital Realty’s global data center footprint offers consumers access to the connected communities.

CONE $821m R8

  • FY'20 $821m, Employees: 517, Number of Data Centers: 48
  • Unitholders receive a 2.48% distribution. Stifel July'20 T $86 from $80, while the consensus target is $79.94. c $80.5

  • About CyrusOne, Headquarter: Dallas, Texas

  • 40 enterprise-class facilities spanning three continents,
  • more than 4 million square feet of gross net rentable square footage.
  • It provides IT services, managed hosting, colocation, and managed data centers. The company also offers consultancy services for IT infrastructure, including network architecture and performance, network security, and fault and performance management services.

CONE) designs, builds and operates facilities across the United States, Europe and Asia that give its customers the flexibility and scale to match their specific growth needs. Specializing in highly reliable enterprise-class, carrier-neutral data center properties, the company provides robust data center infrastructure to ensure the continued operation of IT equipment for a rapidly growing list of organizations that now nears 1,000, including nine of the Fortune 20 and more than 160 of the Fortune 1000 or equivalent-sized companies.

OKE

COR - COLO $482m

Revenue: $482m Number of Employees: 442 Number of Data Centers: 24

Stifel likes> disruptive force in the wholesale data center market, capturing share gains on strong leasing momentum with both hyperscale and enterprise customers. We believe CONE’s ability to bring differentiation around development and its well trained and growing enterprise-oriented salesforce is tough to replicate and thus should enable the company to drive incremental share gains vs. larger competitors. The company has historically been U.S. focused, but we believe its international expansion plans further position the company for success in cloud, while it is supported by a capital structure that prudently maximizes returns... Some of the best returns in the data center group may be found in the smaller players in the space like CyrusOne. The company trades at numerous lower multiples than their bigger competition, and top analysts feel that the discount valuation is not warranted given the recent surge in leasing and above-average growth. The company also has exhibited faster deployment times, rapid new market expansion and low churn among customers, all bullish reasons for buying the stock.

  • About Coresite, Headquarter: Denver, Colorado
  • stable, reliable high-performance data center and interconnection solutions.
  • 24 operating data centers across 8 major communication markets in the U.S.
  • Portfolio totaling more than 4.6 million square feet of data center space.

QTS R8 $446m - REIT

Revenue: $446.5 Million Number of Employees: 739 Number of Data Centers: 26

  • About QTS Realty Trust, Headquarter: Overland Park, Kansas
  • provider of hybrid cloud and fully managed services for efficient data solutions covering more than 7 million square feet of QTS Mega Data Centers across North America and Europe. Moreover, QTS has an integrated network in which its data centers are managed and operated and offers a variety of infrastructure solutions for information technology (IT). What’s unique about QTS Realty Trust is that they are adopting a three-pronged sustainability strategy, the company is committed to minimizing the carbon footprint of the data center and using as much renewable fuel as possible.
  • Q4'20 completed its most recent round of HIPAA, PCI-DSS, SOC1 Type II, CPNI, GDPR, and CCPA compliance review, and certifications.

Data Centers - Smaller and Startups, North America

365 Data Centers 11m

AirTrunk ($307 million)

AirTrunk is the technology company powering the companies transforming the world as we know it. AirTrunk designs, builds and operates hyperscale data centres that are more cost-efficient, scalable and available. Singapore

Globals ex China, India

INXN - COLO $586m

Revenue: $586m Number of Employees: 638 Number of Data Centers: 28

  • About Interxion Holding N.v., Headquarter: Schiphol-Rijk, Netherlands
  • An European data center provider that delivers services
  • 28 data centers in 11 countries located in major metropolitan areas, including London, Frankfurt, Paris, Amsterdam, and Madrid.
  • The carrier-neutral colocation services of the company allow clients to reduce operating and capital costs while improving the efficiency and versatility of the application.

KDDIF:OTC - Largest Data Center

  • EPSt = $2.80 PE=11x fPE=11.26
  • M-72b 2.29b sh, div=$1.14 Semi-Annual y=3.6%

  • KDDIY ADR $15 M=$69b Bulk is Telecom svcs competes with NTT KDDI Corp. engages in the telecommunications business. It operates through the following segments: Personal Services, Value Services, Business Services, Global Services, and Others. The Personal Services segment provides mobile and fixed-line communications services to individual customers. The Value Services segment provides content, settlement, and other services. The Business Services segment provides cloud-based solutions for the use of mobile handsets such as smartphones, tablets, and networks. The Global Services segment provides one-stop information and communications technology (ICT) solutions and cloud services. The Others segment handles construction and maintenance of facilities, call centers, research, and advanced technology development. Its brands include \"au\" brand mobile communication, \"au HIKARI\", FIFTH and CATV services. The company was founded by Kazuo Inamori on June 1, 1984 and is headquartered in Tokyo, Japan. KDDIY is listed on the Pink Current market tier. OTC market data is provided by OTC Markets Group, Inc (otcmarkets.com). The listed name for KDDIY is KDDI Corporation Unsponsored ADR (Japan).

  • Telehouse, KDDI America - largest data center Japanese Revenue: $139b Number of Employees: 41,996 Number of Data Centers: 46

  • KDDI America, Staten Island, New York
  • KDDI America runs Telehouse data centers in the U.S. with state of the are infrastructure, high-performance colocation, round-the-clock management and monitoring, and industry-leading security. The company grants access to over 800 connectivity partners including carriers, ISPs/ASPs, and many of the world’s largest private and public cloud service providers.
  • 12 countries, more than 20 cities, covering a total of over 400,000 square meters.

  • SEG: Personal personal and home - mobile phone, fiber-to-the-home, cable television

  • SEG: Life Design segment provides commerce services, financial services, payment services, and content services such as video, music and information distribution.

  • SEG: Business segment offers various communication services, the sale of mobile handset, data center services and various Information and Communication Technology (ICT) solutions/cloud-based services to enterprise customers.

  • SEG: Global segment offers various communication services, data center services and various ICT solutions/Cloud-based services to to overseas customers.

  • SEG: SVCS Communication equipment maintenance service, as well as the research and development services of information communication.

NTT

  • NTT Communications Revenue: $26 Million #6,250 Number of Data Centers: 48

CHINA Data Centers

BABA

CHA - $54b 281k emps, 456 data centers

  • About - China Telecom, Beijing
  • worldwide Internet Data Centers which provide secure hosting services that enable businesses to avoid the cost, complexity, and time needed to build and manage their facilities. China Telecom offers wireline and mobile telecommunications services, ISPs, information services. With 95% of networks for 1.2 billion people in 31 provinces, China Telecom dominates China’s biggest fixed-line telecommunications services.

CHU $22b

  • ALL China Unicom Revenue: $21.67 Billion Number of Employees: 29,544 Number of Data Centers: 550
  • Founded 2000, China United Network Communications Group was formally formed based on the merger between the former China Netcom and the former China Unicom. The company offers trusted end-to-end global integrated telecommunications services and solutions, including global connectivity services, global internet access, ICT services, cloud, Internet of Things (IoT), video conferencing, unified communications, content, and security services, and provides premium voice and mobility services to customers.

Data Centers INDIA

India Data Center and Internet Markets

With over 560 million internet users, India is the second-largest online market in the world. It is estimated that by 2023, there would be over 650 million internet users in the country.- Statista

Combined with Government pushing digital projects like Adhaar, Ayushman presents a huge demand for the data center infrastructure.

The overall India public cloud services market is likely to touch $7.4 billion by 2024 growing at a CAGR of 22.2% for 2020-24 - IDC.

Problems in India

Lack of Real Estate

Power outages

4G - Jio forcing function

5G move and "Digital India"

Regulation, eGov pushing Adhaar, Health and Payments to Poor

1, Digital Taxation

  1. Potential Forcing Data Centers on India Soil

  2. Government of India supporting public investment in large scale digitalization with its ‘Digital India‘ scheme and with the transition of telecommunications providers (telcos) to high-speed 4G LTE and the soon to come 5G wireless technologies.

Competitive Marketshares

--- Global Cloud Presence

Global players like Alibaba Cloud, Microsoft, Google and Amazon - have they actually opened data centers on the Indian soil.

Netmagic (An NTT Communications Company)

Netmagic, a wholly-owned subsidiary of NTT Communications, is a leading managed hosting and multi-cloud hybrid it solution provider with 9 carrier-neutral, state-of-the-art hyperscale and high-density data centers. It serves more than 2000 enterprises globally.

Netmagic, headquartered in Mumbai, also provides Remote Infrastructure Management (RIM) services to various enterprise customers globally including NTT Communication’s customers across Americas, Europe and Asia-Pacific region.

Netmagic was the first in India to launch services including cloud computing, managed security, Disaster Recovery-as-a-Service (DRaaS) and software-defined storage.

--- Locals overview

The local players, having an advantage over global players in terms of knowing the market conditions well, are also leaving no stones unturned with new launches, innovative offerings and solutions on advanced technologies.

Tata Communications - Global Broadband

Tata Communications Limited, with its subsidiaries (Tata Communications), is a leading global provider of A New World of Communications™. Tata Communications utilizes its advanced solutions capabilities and domain expertise across its global network for delivering managed solutions to multi-national companies and communications service providers.

Its global network includes an advanced and largest submarine cable network and a Tier-1 IP network with connectivity to over 240 countries and territories across 400 PoPs, as well as approximately 1 million square feet of data centre and colocation space across the globe.

Tata Communications’ reach in the emerging markets includes leadership in Indian enterprise data services and in global international voice communications.

Nxtra Data Ltd, Bharti Airtel group

Nxtra Data Limited was formed to run Bharti’s business of Data Center Managed Services.

Nxtra now manages 10 Tier III and above and ISO 27001 certified data centres at Manesar, Noida, Chennai, Mumbai, Bangalore, Bubhaneshwar and Pune. The total facilities provide an approx. 200,000 sq. ft. of floor space.

Nxtra offers an integrated portfolio of data center managed services including co-location, managed hosting, managed services, managed security, managed back-up & storage, virtual compute and cloud along with both domestic and international network connectivity.

Web Werks, 3 Countries, Mumbai

It launched its fourth data center in Pune in August 2020;

Web Werks Data Centers, located in 3 countries with over six geographically dispersed data centers, have been among the leaders in India for past two decades. They offer reliable hosting services on dedicated servers, cloud, co-location, virtualization and disaster recovery along with 24×7 support and 99.995% up-time guarantee.

Web Werks Data Centers are Carbon Neutral contributing towards Global Go-Green concepts. It is also a SAP certified provider of infrastructure, hosting and cloud operations services.

Web Werks in India is the first Asian data center to hold OIX-2 and host an OIX-1 IXP Mumbai-IX. They also fulfill all the requirement for being a full OpenIX supporter. They are cloud empaneled by Ministry of Electronics and Information Technology, Government of India (MeitY).

Their client list includes Microsoft, Google, Godrej, Canon, TATA, Netflix, Facebook, Akamai, and more. They also have Government sector customers like Mumbai Metro Rail Corporation Limited, Maharashtra Knowledge Corporation, Nabard, Maharashtra Pollution Control Board, SIDBI and more.

Sify Technologies - OTC ancient ADR kaput

Sify is a leading integrated ICT Solutions and Services organization in India. It offers a wide range of solutions and products that are delivered over a common telecom data network infrastructure reaching over 1550 cities and towns in India.

Sify’s telecom network presently connects 45 data centers across India, including Sify’s 6 concurrently maintainable data centers across the cities of Delhi, Mumbai, Chennai and Bengaluru.

In 1998, Sify was the first Indian ISP that helped millions experience the internet for the first time on its network. It was the pioneer of Internet café, data and voice services for international call centers.

Today it has also expanded to the United States, with headquarters in California’s Silicon Valley. It has over 8500 enterprise customers.

Yotta, Mumbai

Yotta launched Asia’s Largest Uptime Institute certified Tier IV Datacenter in Navi Mumbai in July 2020;

Promoted by the Hiranandani Group, Yotta design, build and operate infinitely scalable Data Center Parks. Yotta’s 50+ Acres of Data Center Parks will offer 11 Data Center buildings with options ranging from a single rack to an entire building, or even customized DC, supported with a wide range of managed services.

Yotta has a highly experienced (150+ man years) and certified Data Center design team. They claim to have some of the best minds in Electrical, Mechanical, HVAC, Automation, Fire fighting and Physical Security working with them.

NxtGen

It is providing transformational services with DevCloud, Machine Learning (ML) and Artificial Intelligence (AI), ESDS providing smart city solutions and AI services, and a lot more.

NxtGen enables its customers to build their digital business without investing and managing complex IT infrastructure, by leveraging its hyper-converged infrastructure.

Headquartered in Singapore, NxtGen, is an emerging leader providing completely managed datacenter and cloud services across India and Singapore.

NxtGen deploys and offers IT infrastructure services from both or a combination of on-premise resources and its own facilities – Infinite DatacenterTM, empowering its customers to adopt the latest hybrid computing model.

CtrlS.in, Mumbai

CtrlS is an ANSI/ITA-942 certified Rated 4 Datacenter and managed services provider headquartered in India. CtrlS operates one million square feet of data center space across seven state-of-the-art facilities, including Hyderabad, Mumbai, Noida, and Bangalore. As per CtrlS, it is serving 60 of the Fortune 500 global multinationals.

Mumbai data center facility of CtrlS is LEED Platinum certified v4 O+M data center by United States Green Building Council (USGBC). Its Mumbai DC2 is a Rated-4 facility. It is covered by solar panels generating 1 MW of power. Its Noida facility is 100% quake proof and pollution free data center facility.

CtrlS has started working on its plan of expanding its footprint by 5 million square feet. It has acquired the land for constructing 2 million square feet hyperscale data center park in Navi Mumbai; 2 million square feet hyperscale data center park in Hyderabad; and plans are in wings for a 1 million square feet facility in Chennai.

ESDS

Founded in 2005, ESDS is a leading managed data center service and auto-scalable cloud solution provider. ESDS is working steadfastly towards establishing a huge customer base.

It provides managed data center services, managed cloud solutions, virtualization, and disaster recovery hosting, backed with technical support.

ESDS has its presence in the following industry verticals – Banking & Finance, Manufacturing, Education, Energy & Utilities, Healthcare, eCommerce, Agriculture, IT, Entertainment & Media, Telecom, Government, and Travel & Tourism.

GPX Global Systems Inc.

GPX develops and operates private, carrier-neutral, state-of-the-art Tier 4 data centers in emerging, but fast-growing commercial markets within the MENA and South Asia markets. GPX’s data centers are thriving carrier-neutral internet ecosystems, and home to the largest carriers, cloud service providers, content providers and internet providers.

GPX offers secure and highly reliable carrier-neutral data centers to both -domestic and international clients looking to colocate their crucial business infrastructure.

Its first data center was in Cairo in 2007. It opened its second Egyptian data center in early 2016, a 3000 M², Tier 4 facility located in New Cairo, Egypt.

GPX opened the first Tier 4 facility in South Asia in June 2012. It was a 3000 M² data center in Mumbai. Due to rising demand for high-quality facilities and service levels in India, GPX has announced its second Mumbai data center, GPX Mumbai 2 – a 6000 M², Tier 4 facility with 16 MW total power that will be available in Q2 2019.

GPX’s customers include Telcos, Cloud Service Providers, Internet Service Providers, CDNs, e-businesses and enterprise clients.

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Data Center Infrastructure Business BM$, Key Factors


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