DBS Group Research analysts Dale Lai and Derek Tan see data centre REITs and cloud players as more collaborators than competitors.
“In recent years, there has been a rise in the number of hyperscale data centres, mostly developed by the big cloud providers (Google, Amazon Web Services, Microsoft Azure, etc.) for their own use. As these hyperscale data centres come online and these major cloud providers move into their own facilities, it will no doubt put pressure on some of the older data centres as they vacate their space,” the analysts write in their report dated July 1.
In their view, older data centres could see pressure on their occupancy rates in the short term as more hyperscale data centres come online.