Data Center Investment News — 09/06/2023
Rostelecom to build a 200-rack data center in Armenia
Russian telecommunications company Rostelecom has announced plans to establish a new data center in Armenia. The subsidiary GNC-Alfa, based in Armenia, aims to launch a 200-rack facility in early 2024, marking the first large-scale data center in the country built according to stringent requirements. The location and power capacity of the facility have not been disclosed. Rostelecom’s president, Mikhail Oseevsky, emphasized the company’s active development in Armenia and the strong interest from government agencies. This decision represents a reversal from Rostelecom’s previous intention to sell its Armenian unit in 2021, as confirmed by Oseevsky in March 2023. CJSC GNC-Alfa, Rostelecom’s subsidiary in Armenia, currently provides a range of services, including internet access, fixed telephony, and IP TV, and its fiber optic network spans 2,500km, covering 80 percent of the country’s territory. The establishment of this new data center demonstrates Rostelecom’s commitment to expanding its presence and services in Armenia’s telecommunications market.
Amazon is set to establish four new data center campuses in Virginia’s Spotsylvania and Caroline Counties, with a combined development area of over 10 million square feet. The company has filed applications for the Summit Crossing Tech Campus, Carter’s Store Tech Campus, Cosner Tech Campus, and part of the Orrock Tech Campus. These projects are estimated to involve an investment of approximately $1 billion each and will be developed in phases until 2035. Additionally, a proposal called Hunters Ridge has been filed separately. While Northern Virginia is known as a data center hub, Spotsylvania and Caroline Counties have not experienced such development until recently. The move by Amazon further expands its presence in Virginia, where it has already invested $35 billion and plans to invest an additional $35 billion by 2040. Other counties in Virginia, including Orange, Culpeper, and Stafford, have also seen data center applications in recent years.
Edge Centre’s Cybercon acquires Orion Data Centers.
Cybercon, which was recently acquired by Australian operator Edge Centres, has made its own acquisition by purchasing Missouri-based operator Orion Data Centers. The deal adds a facility in Columbia to Cybercon’s portfolio. The size of the acquired suite is undisclosed, but Orion operates a single facility in Columbia equipped with a 230kW diesel generator for backup power. Edge Centres and Cybercon CEO Jon Eaves expressed excitement about the acquisition and emphasized the company’s commitment to providing exceptional data center services and driving growth in emerging and regional markets. Cybercon is planning to acquire 20 US regional edge data centers within the next three years. Kris Knutson, CEO of Orion Data Centers, expressed enthusiasm about the opportunity to sell his data center holdings to Cybercon, which will expand and enhance services in the Mid-MO market. Orion Data Centers was established by Knutson in 2015 after he acquired the facility previously used by Carfax. Edge Centres aims to expand further in the US, with plans for facilities in Los Angeles, Portland, Detroit, and Reston.
Keppel DC REIT to get new CEO.
Keppel DC REIT, a data center real estate investment trust, is undergoing a senior leadership change as CEO Anthea Lee Meng Hoon moves to Frasers Logistics and Commercial Trust (FLCT). Loh Hwee Long, currently the chief investment officer at Keppel, will succeed Lee as CEO, pending regulatory approval. Loh has extensive experience in real estate investment and has been with Keppel for over a decade. The board of Keppel expressed confidence in Loh’s abilities to continue growing the REIT and deliver value to stakeholders.
Meanwhile, Anthea Lee will assume the role of CEO at FLCT, a Singapore-based logistics and commercial REIT, starting from August 14. Lee brings more than 26 years of experience in real estate investment, development, and asset management to her new position. The board of FLCT welcomed Lee and expressed gratitude to the departing CEO, Robert Wallace.
Keppel owns 23 data centers across nine countries, with a total value of $3.7 billion. The company recently received regulatory approval for a floating data center park project in Singapore. Keppel’s stock value closed at $2.10, showing a 0.48 percent increase for the day and a 17.32 percent increase year-to-date.
FLCT’s portfolio consists of 107 industrial and commercial properties valued at around $6.8 billion in various countries. The company owns a data center operated in partnership with STT GDC, with a hyperscale facility located in Bangkok, Thailand. FLCT stocks closed at $1.28 on June 1, reflecting a 3.23 percent increase for the day and a 10.34 percent increase year-to-date.
Ufinet launches Panama data center.
Ufinet, a Latin American fiber firm, has opened a new data center in Panama City, Panama. The Ufinet Transistmica Data Center has achieved Design Tier III certification, promoting the telecommunications sector in Panama by offering new interconnection and availability options. The facility is Tier III certified by Uptime and certified Rated 3 ANSI/TIA-942-B, ensuring high reliability and quality. Specific details about the facility were not disclosed.
The inauguration of the data center was attended by Ufinet’s country manager José Quintas García, commercial manager Lisbeth Valenzuela, and CTO Robinson Gutiérrez Gallego, along with government officials and Ufinet customers.
Ufinet, established in 1998 by Spanish gas and energy company Union Fenosa, operates more than 90,000km of fiber across Latin America. It merged with GNF Telecom in 2009 and was acquired by investment firm Cinven in 2014, with Enel holding a minority stake since 2018. Ufinet also operates a Tier III certified data center known as Ciudad Digital in Guayaquil, Ecuador, through its Nedetel unit.
Airtel plans for Nxtra to build five data centers in Africa.
Indian telecommunications company Bharti Airtel plans to construct five data centers in Africa through its subsidiary Nxtra Data Centers. Nxtra, which is a joint venture between Airtel and Carlyle, has a strong presence in India but is yet to expand internationally. Airtel already operates 40 Edge data centers in Africa for its own use and has invested in two submarine cables, 2Africa and Equiano, which will further enhance connectivity in the region. With the landing of these cables, Airtel aims to establish five hyperscale data centers in Africa. Currently, Nxtra operates 12 data centers in India along with 120 Edge facilities or Points-of-Presence. The expansion into Africa demonstrates Airtel’s commitment to growing its presence and offerings in the African market.
$1bn data center project coming to York County, South Carolina
York County Council in South Carolina is discussing a tax break for a data center project codenamed “Project Cobra.” The unidentified company behind the project plans to invest $1 billion to construct a new data center facility, resulting in the creation of 12 new jobs. Details about the location and specifications of the project have not been disclosed. The size of the investment suggests involvement from a hyperscale developer, with companies like Google, Microsoft, Meta, and Apple already having data center operations in nearby areas of South Carolina and North Carolina. Local operators DC Blox and Dartpoints also have a presence in South Carolina.
Elea Digital invests $20m in expanding Brazilian data center.
Brazilian data center company Elea Digital has invested more than $20 million to expand its data center in Rio de Janeiro. The capacity of the facility, known as RJ01, has been doubled from 2.5MW to 5MW, and the data center space has increased by 500 square meters (5,380 square feet) to accommodate up to 200 additional racks. Elea Digital plans to eventually reach a capacity of 7MW at the RJ01 facility. The expansion solidifies Rio de Janeiro’s position as a key interconnectivity hub in Latin America. Elea Digital currently operates seven data centers across Brazil and is focused on improving sustainability, aiming to reduce its water usage in data centers to achieve its sustainability targets.
IBM to build quantum data center in Germany.
IBM has announced plans to build its first European quantum data center in Germany. The facility will be located at the IBM campus in Ehningen near Stuttgart and is expected to be operational in 2024. The data center will host multiple IBM quantum computing systems with utility-scale quantum processors of over 100 qubits. The new European region will enable companies, research institutions, and government agencies to access cutting-edge quantum computing while adhering to European data regulations. IBM’s Quantum Network already has over 60 organizations across Europe accessing quantum hardware and software through the cloud. The company’s most advanced processor is currently the 433-qubit IBM Osprey, with plans to launch the 1,121-qubit single-gate Condor and the 133-qubit two-qubit gate-design Heron by the end of this year. IBM aims to develop a 4,000+ qubit processor by 2025. The company recently partnered with the University of Tokyo and the University of Chicago to develop technologies for a 100,000-qubit quantum computer. In other quantum news, Nvidia is collaborating with the Jülich Supercomputing Centre to build a classical-quantum supercomputer, while Chinese company SpinQ Technology offers portable desktop quantum computers, and China Telecom has established a new quantum unit with a focus on developing quantum technology.
CloudHQ acquires more than 120 acres of land in San Antonio, Texas
CloudHQ has acquired 123 acres of land in San Antonio, Texas, to build a data center campus. The site is located in the Texas Research Park, near Microsoft’s facilities in Bexar County. The specific terms of the deal were not disclosed. CloudHQ is reportedly considering multiple configurations of four or five multi-story data center buildings on the site. The company already operates data centers in various locations across the United States and internationally. San Antonio has been attracting significant data center investment, with Microsoft, QTS, and Amazon all planning or developing facilities in the area.
Swedish startup Evroc looks to raise €3bn for two hyperscale data centers.
Swedish start-up Evroc has raised €13 million ($13.9m) in its pre-seed round to develop and operate hyperscale data centers in Europe. The company aims to raise €3 billion ($3.2bn) within the next two years. Evroc plans to establish two hyperscale data centers initially, followed by a total of eight data centers and three software hubs by 2028. The company aims to address the issue of European data storage being dominated by non-European companies, with Evroc positioning itself as a locally-owned hyperscaler. It plans to build sustainable data centers and aims to be the world’s cleanest cloud provider, running on a fraction of the energy consumed by other data centers. Evroc intends to distribute data across facilities located closer to renewable energy sources. The initial funding was provided by EQT and Norrsken VC, with EQT having experience in the data center industry. Evroc’s founder, Mattias Åström, has a track record of creating successful tech businesses.
Digital Edge Breaks Ground with New Data Center in Tokyo.
Digital Edge, a data center solutions provider, has started construction on a new data center in Tokyo, Japan. The facility is being built in response to the increasing demand for data center services in the region. It will offer carrier-neutral connectivity and a range of colocation services to meet the needs of enterprise customers. The data center will be located in the city’s financial district and will feature state-of-the-art infrastructure, including high-density power and cooling capabilities. It will also prioritize energy efficiency and sustainability measures. The Tokyo data center marks Digital Edge’s first venture into the Japanese market, expanding its global footprint. The company aims to provide reliable and secure data center solutions to support the growing digital economy in Tokyo and cater to the needs of local businesses. The facility is expected to be operational by early 2024, contributing to the development of Tokyo’s digital infrastructure and supporting the digital transformation efforts in the region.
nLighten acquires Euclyde Data Centers in France.
nLighten, a digital infrastructure platform, has acquired Euclyde Data Centers, a French regional platform with six carrier-neutral data centers. This acquisition expands nLighten’s operations in Germany and establishes its presence in key European data center markets. The addition of Euclyde’s facilities in Sophia Antipolis, Lyon, Strasbourg, Besançon, and Paris aligns with nLighten’s strategy to integrate data centers into regional data and energy infrastructure. The acquisition also leverages the low greenhouse gas intensity of the French energy market, contributing to nLighten’s environmental sustainability goals. The company, backed by I Squared Capital’s ISQ Global Infrastructure Fund III, plans to retain the operational leadership of the data centers in France and emphasizes its commitment to the French market. The acquisition is seen as a significant step towards nLighten’s objective of creating a leading pan-European edge data center platform.
Digital Realty appoints new chief revenue officer.
Digital Realty has appointed Colin McLean as its chief revenue officer, taking over from Corey Dyer, who will be leaving the company at the end of the month. In his new role, McLean will be responsible for leading Digital Realty’s global sales and marketing organization. McLean, who joined Digital Realty in 2017, has held various senior leadership positions within the company, including leading sales in the Americas region. With over 25 years of sales and operational experience, McLean is expected to enhance and accelerate the value created for customers and stakeholders. This appointment follows the recent additions of Steve Smith as managing director, head of Americas, and Serene Nah as managing director, head of Asia Pacific at Digital Realty.
Stonepeak-backed Cirion breaks ground on 20MW data center in Lurín, Peru.
Cirion Technologies, a digital infrastructure firm backed by Stonepeak, has started construction on a data center in Peru. The 12,000 sqm (129,165 sq ft), 20MW facility is being built in the industrial district of Macropolis in Lurín, Lima Province. It is expected to open in Q1 2025 and will be connected via redundant fiber to Cirion’s existing data center in Lima. Cirion operates more than 17 data centers across Latin America, with locations in Mexico, Brazil, Argentina, Peru, Ecuador, Venezuela, Colombia, and Chile. The company’s expansion is driven by the increasing demand for data center capacity due to the rising popularity of IoT, 5G, AI, networks, and streaming content. Stonepeak, which acquired Lumen Technologies’ Latin American operations, has invested in various digital infrastructure companies globally.
Work on data center in Lincoln, Nebraska finally starting.
Work on a data center campus in Lincoln, Nebraska, has reportedly begun after the project was initially proposed in 2019. Agate LLC plans to develop two million square feet of data center space on over 570 acres of farmland. The company acquired the land in 2020 and has filed a request with the US Army Corps of Engineers to develop the data center. While the company behind Agate is unknown, there is speculation that it may be linked to Google, which has existing campuses in Nebraska. The project has gained approvals and recently received a facility extension and interconnection agreement from the Lincoln Electric System. Google currently has three data center projects in the Omaha area, but neither Microsoft nor Amazon have a data center presence in the state.
Zeittec delivers data center for Brazilian Intelligence Agency.
Zeittec, a Brazilian company specializing in data center projects, has constructed a new data center for the Brazilian Intelligence Agency (ABIN) in Brasília. The facility, located at ABIN’s headquarters, covers an area of 300 square meters and features a dedicated data hall, power room, operation room, equipment room, and IT department area. The data hall is certified with CF 120 classification, providing increased fire resistance for up to two hours. The facility incorporates redundancy and security measures, including 30 sensors for environmental monitoring and 41 security cameras. Zeittec executed all stages of the project, including server and asset relocation. The company has previously completed data center projects for other organizations, such as Sebrae-PR, the Federal University of Espirito Santo, Santos Port Authority, and the Public Ministry of Mato Grosso.