SAP - Hyperscale: Opportunity Or Threat For Data Center Operators?
- Hyperscalers showing preference for building and operating their own data centers; appears a negative for colocation providers.
- However, hyperscalers partner with colocation providers for several reasons, but undifferentiated colocation providers with poor pricing power may see margin compression.
- Equinix and Digital Realty are targeting the hybrid, multicloud segment, with strategies centered around interconnections which gives their data centers a natural advantage in hybrid, multicloud architectures.
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Hyperscale: Opportunity Or Threat For Data Center Operators?