Happy Monday everyone,
It's easy to get caught up in the sea of gloom flowing throughout the world these days, but for those that want to preserve a more positive outlook, especially those working on infrastructure, take a step back and look no further than the generational shift to the cloud and evolution of digital infrastructure. It's early in the ascent and the opportunity to capitalize on the future has never been greater. And while the current macro environment will remain challenged for the foreseeable future, the foundations of digital business (pun intended) will only continue to rise in importance and grow beyond limits anyone has ever likely imagined. Stay hungry. Stay Foolish.
And for those that may have missed it last week: If you live in the San Francisco Bay Area or visit often, I’m working on a putting together a meetup for anyone interested in getting together for some great conversations about the current state and future of infrastructure, along with good food and drink. Please complete this form to receive an invite.(Currently targeting a date after summer)
Let’s get into this week’s update.
Your Weekly Briefing
Cloud Infrastructure Everywhere
It’s not hard to imagine true ubiquity of cloud infrastructure. Essentially, this is already the case today as foundational infrastructure (IaaS) is no longer only centralized, but distributed and available anywhere. By way of smaller cloud regions/zones and products like AWS Outposts, Azure Stack, and Google GDC, major public cloud providers continue to build and expand global infrastructure to deliver core capabilities required to deploy and run workloads in just about any location with power and network connectivity. More importantly, this sprawling distribution along with an advancement of capabilities will create outsized opportunity for new platforms and services to be built on-top of foundational infrastructure such as compute and storage.
AWS plans to expand Local Zones from its current footprint of 17 markets (and announced plans to reach 32) to hundreds of markets according to comments from a company representative speaking at an industry event in London last week. Link
Google Cloud opened another cloud region last week, this time in Milan, Italy, its 35th region globally. Link
From a strategic angle, the race to capture telecom infrastructure moving to the cloud continues to accelerate with all three major cloud providers developing new products and integrating new partners. Last week Google announced support for private network solutions on GDC with new partners including Betacom, Boingo Wireless, Celona, Crown Castle, and Kajeet. Link
DISH announced it’s greenfield 5G network that leverages similar cloud infrastructure and software reached its mandated milestone of providing service to ~20% of the US population. Link
Earlier this year AWS published details of the architecture supporting the DISH network build-out. Link
Data Centers continue to benefit from record levels of demand driven by the perpetual growth of public cloud with analysts at Wells Fargo estimating more than 2.5 gigawatts of capacity will be leased in 2022, a ~65% + y/y increase from record activity in 2021.
Africa Data Centers is expanding its footprint in South Africa with the development of a new 20MW data center in Cape Town Link
Gaw Capital Partners acquired land in Ho Chi Minh City, Vietnam for the development of a 20MW data center in the Saigon Hi-Tech Park. Link
NTT announced it has acquired land in Prince William County, Gainesville, Virginia where it plans to develop a 336MW+ data center campus. Link
Equinix and JV partner PGIM opened their first xScale data center in Sydney. Link
56 Marietta 2.0 and other Digital Realty Updates
According to zoning documents from the city of Atlanta, Digital Realty is planning to develop a 10-story building (~300K total floor area) with 130K SQFT of data center space directly behind 56 Marietta Street (primary connectivity hub in ATL) at 10 Forsyth Street Link
The Atlanta market is heating up with increased competition. Recent developments include CoreSite entering the market via ColoATL/55 Marietta (acquired by AMT), and a former DataSite (also acquired by AMT) facility in Marietta, GA, QTS winning an AWS deployment, and plenty of other activity including new builds and hyperscaleexpansions in other regions of Georgia.
Last week DigitalRealty held its annual Marketplace Live conference where it unveiled the next phase of the company’s evolution including new branding, sunsetting of the Interxion brand, and a new purpose: “To bring companies and data together, in bold new ways, to power the innovation determining our future”, which kicks off in 3Q22.
Additionally, Chief Technology Officer Chris Sharp discussed Platform Digital 2.0 at the company’s inaugural technical user conference—DigitalCon. Outlining four key pillars focused on Capacity (AnyScale Colo), Interconnection (Service Fabric), Partners (HPE, Dell, Atos, Avnet, Rackspace), and Self-Service Experience (APIs & Portal). Sharp also shared that Service Fabric, the successor to Service Exchange will be launching in ~2 weeks.
Separately, Digital Realty announced its expansion into Israel via JV with local real estate developer, Mivine. The new data center campus will be in Petah Tikvah, the central connectivity corridor that has recently seen elevated activity, and will support up to 20MW of power capacity. Link
DigitalOcean 2022 Investor Day
Last week DigitalOcean held its first investor day since becoming a public company. Management again highlighted positive improvements which are nonetheless impressive, but not so new anymore. The company also provided further details on customers and product growth, but the overall pitch was soft and left me disappointed not to hear anything substantial regarding new product innovation or edge computing. I continue to be impressed by the business turnaround and progress since Yancey Spruill took over as Chief Executive but am underwhelmed at the slow progress around new product and market opportunities. Additionally, given the company only recently hired its first Chief Product officer, I'm eager to see if the product strategy evolves and whether or not the company will dial-up the innovation knob or become comfortable navigating the market with primarily commodity products.
FULL NOTE: Notes from DigitalOcean's 2022 Investor Day
Last Week in Digital Infrastructure
Limelight completed its acquisition of Edgecast, initiating its rebrand to Edgio. Link
ThousandEyes launched WAN Insights, a new feature that delivers forecasting capabilities to allow enterprises to optimize SD-WAN performance and move to a more proactive approach for managing network performance. Link
Telecom Egypt will provide Aqua Comms with landing and crossing services for the Europe Middle-East India Connect (EMIC-1) subsea cable. Link
Omantel and SUB.CO entered into an agreement for Omantel to provide network capacity to extend the Oman Australia Cable from Muscat to new SUB.CO points-of-presence in London, Milan, and Marseille. OAC is expected to be ready for service in the third quarter this year.
LINX entered into a partnership with IXAfrica to establish a new internet exchange in Nairobi, Kenya. Link
GigaOm says that Nokia outperforms in data center switching
The latest GigaOm Radar for Data Center Switching identifies Nokia as an Outperformer. The report compares the relative value, innovation and maturity based on strategy and execution of Nokia 7250 IXR hardware running SR Linux NOS and the Fabric Services System operations and automation platform with different vendors’ solutions.
Find out why our high-performance hardware, fully programmable NOS and NetOps toolkit earned high rankings for metrics such as automation and support for network design, deployment and operations
Under the hood: Meta’s cloud gaming infrastructure - Engineering at Meta
The battle for Northern Virginia: Saturation point for data centers? - DCD
Highlights from the 2021 Edge Computing Landscape - ZEDEDA
Digital Cities Index 2022 – Economist Impact
Content vs carriage — who pays?
Why America Will Lose Semiconductors
electricityMap | Live 24/7 CO₂ emissions of electricity consumption
The meteoric rise of the data centre: Key drivers behind global demand | Actualités | DLA Piper Global Law Firm
2022 Cloud Report | Cockroach Labs
Chip Shortage Threatens Cutting-Edge Tech Needed for Next-Generation Smartphones - WSJ