CAPRE’s Data Center Industry Round Up for March 15

Check out the latest in deals, development and disruptive technology in the data center space for March 15, 2019:

  • JLL Report says NoVa Still Leading the Pack, but Data Center Demand is Expanding West, South: Demand for data centers in the western and southern United States is so hot that its growth more than makes up for slowing markets in other region. Overall, data center demand in 2018 was “insatiable.” This according to JLL’s most recent data center outlook. Specifically, Las Vegas (37 megawatts) and Phoenix (51 megawatts) had strong performances in the west during 2018. Phoenix’s absorption clocked in at third across the globe, behind only Data Center Alley in Northern Virginia (270 megawatts) and London (68 megawatts). Nearby markets in the Southern United States and Mountain West region also performed well — Dallas / Fort Worth was ranked fifth globally with 40.2 megawatts, and Houston to the south clocked in 22.23 megawatts. Denver accounted for 5.4 megawatts while the Northwest United States also pulled in 14.1 megawatts.
  • Facebook Pledges to Build Data Centers Where Data Privacy + Human Rights are Protected: Mark Zuckerberg has released a new blogpost pledging to significantly up Facebook’s standards regarding international site selection for data centers. Zuckerberg promised to only store data in countries where such data, as well as human rights, can be trusted to be protected. Pillars of the plan include private interactions, encryption, reducing permanence, safety, interoperability and secure data storage. However, some industry observers are crying foul on this promise — for example, TechCrunch has argued that if Facebook meant what it pledged, it wouldn’t have invested so much in Singapore, a country infamous for its lack of right to privacy and freedom of expression.
  • Ping A Invests $150 Million USD in GDS: GDS Holdings Limited, a developer and operator of high-performance data centers in China, has announced a $150 Million USD equity investment by China Ping An Insurance Overseas Holdings Limited, a subsidiary of Ping An Insurance Group Company of China. The investment will be in the form of convertible preferred shares. GDS will use the proceeds from the investment to fund expansion of its data center capacity and for general corporate purposes. The transaction is expected to close within ten business days. In addition, Ping An Overseas Holdings will have the right to designate one non-voting observer to attend any meetings of the GDS Board of Directors, subject to maintaining its shareholding at or above a specified percentage threshold.
  • Broadcom Doubles Down on Open Compute: Broadcom Inc. has announced its commitment to open computing at the 2019 Open Compute Project (OCP) Global Summit. A long-time supporter of open, standards-based technology, Broadcom is committed to developing high performance, scalable solutions optimized for today’s hyperscale data centers. Broadcom is a leading provider of OCP-compliant solutions, either directly through design project contributions or indirectly, via ODM and OEM integrations; in fact, roughly seven out of ten OCP networking hardware and storage contributions incorporate Broadcom technologies. Broadcom’s technologies are specifically designed to deliver maximum performance and bandwidth while providing energy and cost efficiencies and Broadcom switches, network adapters and storage connectivity solutions are featured in a broad range of OCP architectures and designs.
  • Juniper Networks Expands Networking Simplicity Through Support of SONiC: Juniper Networks has announced native integration of Juniper’s platforms with Software for Open Networking in the Cloud (SONiC), which was developed and contributed to the Open Compute Project (OCP) Foundation by Microsoft. This integration will give cloud providers a simplified and automated switch management platform, enhanced by the rich routing and deep telemetry innovations valued by customers. Introduced by Microsoft in 2016, SONiC is a breakthrough for network switch operations and management. A uniquely extensible platform with a large and growing ecosystem of hardware and software partners, SONiC offers centralized management of switching platforms and various software components. Native integration with SONiC underscores Juniper’s continued commitment to open programmability, complete disaggregation and expanding key offerings to support cloud-first enterprises.