CapRE’s Data Center Industry Round Up for January 11

Jan 11, 2018
by Josh Anderson

Check out the latest in deals, development and disruptive technology in the data center space for January 11, 2018:

  • Argentina & Chile Competing For Newest Amazon Data Center: Amazon wants to build a new South American data center, it has found two very interested destinations to call home – Argentina and Chile. While Chile has long been an attractive place for foreign investment (and was home to the first Google data center on the continent), Argentina’s bid is surprising, since the former leadership of the country ensured that currency controls and import restrictions kept the climate cool to businesses (interestingly enough, Chile has boasted double the foreign investment activity of Argentina despite only having half the population). Argentinian leader Mauricio Macri reportedly met with Elaine Feeney, Amazon’s vice president for global infrastructure expansion, in New York City in December. Since then, the Argentinian central bank authorized banking institutions to farm out their technological services to the cloud and is currently seeking to develop its fiber-optic network and establish Patagonia, in the south, as a tech landing point with generous tax breaks.
  • Apple Moving Chinese Data to State-Run Data Center: Apple is complying with Chinese data sovereignty laws mandating that any data pertaining to Chinese citizens must be stored within the county and migrating Chinese residents’ iCloud data from Apple data centers around the world into the company’s new Chinese facility, which was built in partnership with state-owned Guizhou-Cloud Big Data Industry. The migration is set to begin February 28th.
  • Amazon to Receive Discount on Electricity in Ohio:  The Ohio Public Utilities Commission has granted a ten-year discount on electricity generated by American Electric Power (AEP) to Amazon, to attract further interest in the Buckeye state by the retail and web services giant. Amazon already operates three data centers in Ohio and hasn’t been shy about their desire to build up to twelve more. However, the details of the discount have not been publicly released, which has drawn some local criticism.
  • Research Firm Predicts Data Center Construction Market to Reach $68 Billion by 2022: ReportsWeb has released a new report that predicts the data center construction market will more than double the level of output from 2015, relying on the dominance of electrical design construction within the space (accounting for 40% of construction activity). The key trend driving such strong growth will be colocation and cloud services,which ReportsWeb expect to increase their market share substantially. This high figure does exceed the general predictions by other comparable research firms.
  • Davao Data Center Operations Wiped out by Fire: Operations at the Davao Light and Power data center in the Philippines have been suspended due to a fire that broke out on Sunday morning local time. The cause has not yet been determined, and no casualties were reported. Work has begun to resume business as usual. This is the second major fire in the last month in Davao, the first occurring on December 23rd, 2017 in a U.S.-run shopping mall and call center that failed to comply with fire safety standards.
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