The 2024 Global Interconnection Index (GXI) report by Equinix has revealed that Sydney ranks as Asia-Pacific's fourth largest core metro in terms of interconnection bandwidth. The report further discloses that Melbourne holds the claim as the fastest-growing edge metro worldwide.
According to the GXI's key findings, Sydney's metro area is predicted to mature at a five-year compound annual growth rate (CAGR) of 34%, escalating to 1,376Tbps by 2026, from 485Tbps the previous year. This aligns with the anticipated CAGR for interconnection bandwidth regionally and globally during the same period. Additionally, Sydney leads as the largest metro for business and professional services, consumer services, and industrial services in terms of interconnection bandwidth.
Equally noteworthy is Melbourne's impressive performance. The city is reported to have the fastest growth rate globally for an edge metro with a CAGR of 45%, soaring to 102Tbps in comparison to 35Tbps in 2023. This surpasses the 40% CAGR forecast for edge metros in the Asia-Pacific region.
Steve Madden, Vice President of Digital Transformation & Segmentation at Equinix, spoke on the industry trends identified in the GXI report. He highlighted the significant shift in IT investment patterns. "Subscription models can offer continuous improvement and easier adoption of new technologies already in place. Industry patterns have shown that the traditional procurement process of buying your own IT hardware, if that is not your business, is becoming a competitive disadvantage."
The GXI 2024 report also indicates a 34% five-year CAGR for global interconnection bandwidth, culminating in 33,578 terabits per second by 2026. This is anticipated due to the burgeoning demands of data-dense technologies such as AI, 5G, and edge computing. Asia-Pacific, constituting 28% of global interconnection bandwidth, is projected to expand at a 35% CAGR, accumulating to 9,283 Tbps by 2026.
The report showcases how digital proximity is boosting business at the edge. Edge infrastructure is expected to expand at over two times the rate of core through 2026. In concurrence, Elias Khanser, Chief of Research at EK Media Group, said, "In the current dynamic environment, subscription-based access to a thriving ecosystem is the only way organisations will be able to build and scale a digital infrastructure capable of sustaining the business transformation resulting from AI, edge and other technologies." Further reflecting on this trend, Guy Danskine, Managing Director at Equinix Australia stated, "Continuous evaluation of how core and edge digital infrastructure enables participation in key ecosystems drives material business value."
On the whole, the report underlines the significant changes in the digital economy landscape. It demonstrates the increasing importance of flexibility and agility in response to innovative technologies and changing business dynamics.