DataCenterNews Asia logo
Specialist data center news for Asia
Story image

Hyperscalers hurling colossal capital at data centres

By Ashton Young
Thu 22 Nov 2018
FYI, this story is more than a year old

The old proverb ‘you have to spend money to make money’ could never be truer than in the hyperscale data center industry.

It’s a place where only the largest and most aggressive can survive – as evidenced by the capital expenditure (CAPEX) the tech giants are throwing into the market.

According to new Q3 data from Synergy Research Group, CAPEX again topped US$26 billion for the quarter to maintain 2018’s effort at record-setting levels.

This is especially significant when you look at the figures from last year, which reveal CAPEX over the first three quarters of 2018 is up 53 percent from 2017.

Q3 would have been the most fruitful quarter of all time had it not been for Google’s $2.4 billion purchase of Manhattan’s Chelsea Market building in March, giving the Q1 numbers a last minute shore up.

As you would expect, despite some jostling and elbowing around the top five vendors in the hyperscale market has remained the same over the last ten quarters. In total these vendors (Google, Microsoft, Amazon, Apple, and Facebook) account for 70 percent of aggregate hyperscale CAPEX.

However, Microsoft was the only one of these vendors that increased its CAPEX from the previous quarter after it reached record levels in Q3, while the other four dropped off marginally from their all-time highs in Q2.

Outside of the top five, Alibaba’s CAPEX soared during Q3 to put it far ahead of the other hyperscale operators (which include Baidu, IBM, JD.com, NTT, and Tencent) and knocking on the door of the top five.

“Business at the hyperscale operators is booming. Over the last four quarters their year-on-year revenue growth has averaged 24 percent and they are investing an ever-growing percentage of their revenues in CAPEX,” says Synergy Research Group chief analyst John Dinsdale.

“That is a real boon for data center technology vendors and for colocation/wholesale data center operators, but it has created a huge barrier for companies wishing to meaningfully compete with those hyperscale firms. This is a game of massive scale and only a few can play that game.”

According to Synergy, the bulk of hyperscale CAPEX goes into building, expanding and equipping the huge data centers, which have now grown in number to 423.

The Group’s research is centred around the data center footprint of 20 of the world’s largest major cloud and internet service firms, which includes the most prominent operators in IaaS, PaaS, SaaS, search, social networking and eCommerce.

Related stories
Top stories
Story image
Infrastructure
Global investment in data centers more than doubled in 2021
DLA Piper's latest global survey finds the total investment in data center infrastructure worldwide rose from USD $24.4 billion in 2020 to USD $53.8 billion in 2021.
Story image
Cloud
Cloudflare outage in 19 data centers worldwide due to own error
Cloudflare says its outage for 19 of its data centers yesterday was because of a change in a long-running project to increase resilience in its busiest locations.
Story image
Amazon Web Services / AWS
Qualtrics goes live on AWS Cloud Infrastructure in Japan
Organisations across Japan will now be able to access the Qualtrics XM/OS platform locally via data centre in the AWS Asia Pacific (Tokyo) region.
Story image
Partnerships
Thailand announces launch of the Thailand 5G Alliance
It will promote collaboration between the public and private sector, through companies such as Huawei, to commercially drive Thailand's 5G development.
Story image
Data Science
Neo4j announces service delivery alliance with Deloitte
Neo4j has announced a service delivery alliance with Deloitte Consulting Southeast Asia for a range of services to customers within the region.
Story image
Sustainability
Evolution Data Centres reveals target of 20 tonnes of CO2 per GWh
Evolution Data Centres launches their new Sustainable Data Centre Charter, which includes targets like only 20 tonnes of carbon emissions per GWh by 2030.
Story image
CASB
Juniper expands SASE offering with data loss prevention capabilities
Juniper has announced the expansion of its SASE offering with the addition of cloud access security broker (CASB) and data loss prevention (DLP) capabilities.
Story image
Sustainability
SoftIron named global leader for efficient DC infrastructure solutions
SoftIron has been named a global leader for supplying energy-efficient data infrastructure solutions for core-to-edge data centers after an assessment by Earth Capital Ltd.
Story image
Cloud
QuSecure partners with DataBridge Sites to showcase platform
QuSecure has partnered with DataBridge Sites to showcase its Quantum-as-a-Service (QaaS) orchestration platform, QuProtect.
Story image
Microsoft
Microsoft, Cloudian partnership offers data center flexibility
Cloudian’s HyperStore object storage platform is now integrated and validated to work with Microsoft SQ Server 2022, offering more flexible and scalable data centers.
Story image
Cloud
Talend introduces new data health solutions for businesses
Talend has announced its latest version of Talend Data Fabric, with the release of Talend Trust Score enabling data teams to establish a foundation for data health.
Story image
Robotic Process Automation / RPA
Micro Focus unveils Data Center Automation for SaaS delivery
MicroFocus has released Data Center Automation (DCA) for software-as-a-service (SaaS) delivery, offering more cost-effective vulnerability risk and IT compliance management.
Story image
Sustainability
Aligned Data Centers increases sustainability-linked loan
Aligned Data Centers has increased its sustainability-linked loan from $375 million to $1.75 billion to speed up the next phase of its strategic growth.
Story image
Sustainability
Siemens showcases new automated solutions for data centers
Siemens has implemented new automated solutions and AI in the Baltic region's largest data center, providing insight into the future of data center management.
Story image
Cloud
Cisco Live showcases new offerings in its first hybrid event
Cisco Live 2022 has seen Cisco executives and customers take the stage to present a range of discussions in the company’s first-ever hybrid event.
Story image
Cable
New high-performance cable in the works for Asia
A new high-performance submarine cable is being built to enhance connectivity between Hong Kong, China and Southeast Asia.
Story image
Cloud
SnapLogic improves Intelligent Integration Platform
SnapLogic has released new features and improvements to its Intelligent Integration Platform, which will allow IT, data and business teams to make select processes faster and more straightforward.
Story image
Employment
Tech job moves - Forcepoint, Malwarebytes, SolarWinds & VMware
We round up all job appointments from May 13-20, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Cloud
Boomi surpasses 20,000 customers. Sets record for the iPaaS space
Boomi has announced it has surpassed the 20,000 customer mark, setting the record for the largest customer base among iPaaS vendors.
Story image
Cloud
Microsoft unveils adaptive accessories for disability access
Microsoft is introducing an expansive Inclusive Tech Lab to give people with disabilities greater access to technology through new software features and adaptive accessories.
Story image
Sustainability
AirTrunk boosts Japan presence with West Tokyo data center
AirTrunk is planning to build TOK2, a new hyperscale data center in Japan which will strengthen the company’s presence in the country.
Story image
Sustainability
Intel unveils new investments for data center sustainability
Intel has announced two new investments, continuing its efforts to create more sustainable data center technology.
Story image
Vietnam
Viettel IDC deploys Cloudian Hyperstore object storage for enhanced cloud solutions
Cloudian has announced that its Hyperstore object storage has been deployed by Vietnam telco Viettel IDC, citing the technology’s flexibility, multi-tenancy and ransomware protection as significant advantages.
Story image
Sustainability
Daikin and SP Group to build new energy efficient district cooling system
The project, set to be complete by 2025, will create a system with a cooling capacity of up to 36,000 refrigerant tonnes (RT). 
Story image
Infosys
Preparing for the digital decade with the right workforce strategies
For a decade that started under the pall of the pandemic, the 2020s is poised to end with a bang with the digital economy swelling to a high across the world.
Story image
Microsoft
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Broadband
Singapore found to have the speediest internet rates in the world
New research from BanklessTimes has shown that Singapore has the highest recorded median internet speed in the world at 207.61 MBPS.
Story image
Healthcare
SnapLogic launches Accelerator for Amazon HealthLake
SnapLogic has launched Accelerator to allow healthcare and life sciences organisations to turn raw data into healthcare-related insights and actions.
Story image
Sisense
Data and analytics could be key to higher selling prices in APAC
Sisense's latest report has found that almost half of data professionals in APAC think customised data and analytics can create better selling prices for their products.
Story image
Artificial Intelligence
Databricks announces new offering for Unity Catalog
Databricks has significantly expanded data governance capabilities on the lakehouse by unveiling data lineage for Unity Catalog.
Story image
Cloud
Vertiv introduces line of redundant power transfer switches
Vertiv has introduced Vertiv Geist Rack Transfer Switch (RTS), a new line of transfer switches that provides redundant power to single-corded devices.
Story image
Cloud
Telstra expands business offerings in the Philippines
The expansion aims to offer more choice for customers and enhance connectivity into the Philippines, and within the country.
Story image
Expansion
Colt Technology expands into South Korea data center market
Colt Technology Services has expanded its network into the South Korean market, offering the country’s businesses cost-effective, low latency connectivity.
Story image
Digital Transformation
The Huawei APAC conference kicks off with digital transformation
More than 1500 people from across APAC have gathered for the Huawei APAC Digital Innovation Congress to explore the future of digital innovation.
Story image
Secure access service edge / SASE
Cisco unveils new cloud-managed networking offerings
Cisco has announced new cloud management capabilities that offer a unified experience across the Cisco Meraki, Cisco Catalyst and Cisco Nexus portfolios.
Story image
Infrastructure
SolarWinds IT Trends Report highlights increased cloud complexity for businesses
SolarWinds' new IT Trends report has signalled a significant shift in the way businesses are dealing with hybrid cloud and infrastructure.
Story image
Sustainability
Huawei unveils next-generation sustainable data centers
Huawei says its next-generation data centers will be powered by PowerPOD 3.0, which reduces the footprint by 40% and cuts the energy consumption by 70%.
Story image
Sydney
Equinix and PGIM Real Estate open data centre in Sydney
Equinix and PGIM Real Estate, the real estate investment and financing arm of PGIM, have announced the first xScale data centre in Sydney, named SY9x.
Story image
Sustainability
RDA and MVGX partner for sustainable data center development
Red Dot Analytics (RDA) and MetaVerse Green Exchange (MVGX) have entered a strategic partnership to make Singapore's data center development and operations more sustainable.
Story image
Cybersecurity
Kaspersky opens three new centers to boost data management
Cybersecurity company Kaspersky has opened three new Transparency Centers, one in Japan, the second in Singapore and the third in the United States.
Story image
Sustainability
Legrand unveils Nexpand, a data center cabinet platform
Legrand has unveiled a new data center cabinet platform, Nexpand, to offer the necessary scalability and future-proof architecture for digital transformation.
Story image
Cybersecurity
Secureworks researches new threat to Elasticsearch databases
Researchers from Secureworks' Counter Threat Unit have identified indexes of multiple internet-facing Elasticsearch databases replaced with a ransom note.
Story image
Infrastructure
New Uptime analysis highlights worsening downtime costs and consequences
New data from Uptime Institute has found that downtime costs and consequences are worsening as those involved in data infrastructure fail to find ways to curb outages.
Story image
Power / Energy
Keysight Technologies introduces new next-gen DPT solution
Keysight Technologies has announced its new next-generation Double-Pulse Tester (DPT) with the PD1550A Advanced Dynamic Power Device Analyser.