The famous words "Go West, young man" are often attributed to Horace Greeley. Greeley was a writer and politician who is also well known for fighting against corruption of the then US President, Ulysses S. Grant. So in many ways, the world has not changed much.
What is changing is the focus of the data center industry towards wholesale projects. Many data center companies in Europe are following the mantra of "Go Wholesale, young man".
One of the major public announcements of recent months is the forming of a USD 1 billion joint venture between Equinix and GIC, Singapore's sovereign wealth fund. This joint venture should be closing any time soon. The joint venture aims to build what they call xScale data centers for the hyperscalers like Alibaba, Amazon, Microsoft, Oracle and Google. As Equinix enjoys an significant market presence in the corporate market, building wholesale sites in metros alongside the traditional sites, does make sense.
CyrusOne is expanding as ever with in the Asian and European markets, expecting to open up a new site between Amsterdam and Haarlem early 2020, with sites expected in Frankfurt and Paris soon and currently boasting 20000 m2 in London alone.
And so many others are quietly making more plans so try and help the hyperscalers with custom-built, dedicated sites for the famous list of hyperscalers. As corporates look more to outsourcing to these hyperscalers and the reasoning is obvious. The questions remains, as to what role the retail data center company then will have and can the returns be made, the current shareholders and financiers are used to ?
An interesting counter movement is that of the proposed acquisition by Digital Reality of Interxion. Digital Reality, as traditional wholesaler, has spent a lot of effort to move into the retail market, now has bitten the bullet to accelerate into the retail market with Interxion. So when the guys who have been in the wholesale for quite some time are making advances else where, is wholesale the place to be ?
Just to come back to Horace. He campaigned to oust Grant as president but did not make it, even dying shortly after the election. Also we now know that his famous words were originally not his own but he certainly did make them famous. So there is fame in making bold statements, but is there fortune?