Latest news with #cloudAdoption
Globe and Mail
7 hours ago
- Business
- Globe and Mail
Russia Data Center Market Investment to Reach $2.47 Billion by 2030- Exclusive Research Report by Arizton
"Russia Data Center Market Research Report by Arizton" Get Insights on 97 Existing Data Centers Facilities across Russia According to Arizton's latest research report, the Russia data center market is growing at a CAGR of 9.40% during 2024-2030. Report Scope: Market Size (Investment): USD 2.47 Billion (2030) Market Size (Area): 507 Thousand Sq. Feet (2030) Market Size (Power Capacity): 118 Mw (2030) CAGR - Investment (2024-2030): 9.40% Colocation Market Size (Revenue): USD 1.26 Billion (2030) Historic Year: 2021-2023 Base Year: 2024 Forecast Year: 2025-2030 Market Overview The Russia data center market is experiencing remarkable growth, driven by increasing cloud adoption, rapid digitalization, and the integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML). The Russian government is playing a pivotal role in this expansion through several strategic initiatives. Notably, the Ministry of Digital Development has launched the 'Coordination Center for Data Centers and Cloud Technologies' under the Autonomous Non-Commercial Organization (ANO). This initiative aims to support data center operators by offering loans at interest rates slightly above 5%, enabling the expansion of data center infrastructure across the country. Furthermore, local construction contractors and data center operators are expanding their services to meet the growing demand for colocation, attracting new market entrants and encouraging further investment in state-of-the-art facilities. This surge in activity highlights the Russia data center market's vibrant outlook, underpinned by technological innovation and proactive government support, positioning the country as a key player in the global digital infrastructure landscape. Russia Accelerates 5G Rollout, Fueling Data Center Growth and Digital Innovation Russia is steadily advancing its 4G and 5G infrastructure, paving the way for a nationwide surge in data center investments. As mobile data consumption rises, telecom operators and digital service providers are under increasing pressure to reduce latency and boost real-time processing capabilities. Supporting this digital transformation, the Russian government has introduced strategic initiatives, most notably the Strategy for the Development of the Communications Industry in the Russian Federation for 2024–2035. In addition to outlining a long-term roadmap, the plan includes financial incentives and targeted funding to accelerate 4G and 5G deployment across the country. Complementing these efforts, leading telecom providers such as MTS, MegaFon, and Beeline are actively investing in high-bandwidth, low-latency services to meet the evolving needs of consumers and industries. As 5G infrastructure scales, demand for edge data centers is set to grow significantly. These facilities will play a critical role in enabling local data processing, reducing latency, and delivering seamless, high-performance digital experiences, supporting Russia's vision for smart cities, autonomous technologies, and Industry 4.0. Recent Market News In July 2024, Rostelecom, a Russian telecommunications provider, planned to acquire a data center facility in Moscow, operated by PNK Group; the IT capacity of the facility was slated to be over 72 MW In August 2024, Rostelecom, a Russian data center operator, acquired a data center facility in Medvedkovo, Russia, from 3Data for an investment of over $287 million In April 2025, Yandex decided to develop a new data center facility in Mozhaisk, Russia, for an investment of over $192.93 million. The project will be developed near the village of Zachatye. Sustainability Initiatives Drive Surge in Data Center Investments Across Russia As sustainability becomes a central priority in global infrastructure development, the data center industry is experiencing a growing wave of investment driven by environmentally responsible practices. With data centers known for their high energy consumption, investors are increasingly favoring facilities that embrace green technologies to reduce both environmental impact and long-term operational costs. In Russia, data center operators are capitalizing on the country's natural climate advantages by adopting energy-efficient cooling technologies, most notably, free-cooling systems that utilize ambient cold air. These efforts have helped facilities achieve power usage effectiveness (PUE) ratios as low as 1.5, signaling significant improvements in energy efficiency. Further supporting this sustainable shift, Russia generated approximately 21% of its electricity from renewable sources in 2023, according to the International Renewable Energy Agency (IRENA). Hydropower dominated this mix, contributing over 89% of total renewable output, followed by solar, wind, and biomass energy. Looking ahead, renewable energy adoption in Russia is expected to rise substantially, backed by government support and favorable policies. As a result, the data center sector is poised for further expansion, attracting increased investment from stakeholders focused on long-term sustainability and climate-conscious growth. Moscow Strengthens Its Position in Russia's Data Center Market Moscow continues to solidify its status as Russia's leading hub for data center development, supported by its strong digital economy and advanced infrastructure. In May 2025, the Moscow Internet Exchange (MSK-IX) reported an average internet traffic of approximately 4,545 Gbps, underscoring the city's vital role in national connectivity. Hosting over 58 data centers, Moscow boasts the largest and most diverse network of facilities in the country, with major providers including DataPro, IXcellerate, Telehouse, Selectel, DataSpace, Rostelecom, and 3Data. The presence of large enterprises in finance, media, and retail further fuels demand for cloud services and cutting-edge technologies such as AI, big data, and the Internet of Things. Key Company Profiles IT Infrastructure Providers Fujitsu Huawei Technologies IBM Juniper Networks Lenovo NetApp Supermicro Data Center Construction Contractors & Sub-Contractors Arup Astron Buildings DCDeployed Granlund Group Green MDC Haka Moscow Hexatronic Group LANIT-projects MonArch Group Nefteresurs Sirius Sintec TECEZE XYZ Realty Support Infrastructure Providers Aksa Power Generation Baudouin Bray International Carrier Centiel Climate Technologies Climaveneta CNC Electric CSBattery ENERGY Cyber Power Systems Delta Electronics EMICON FG Wilson GE Vernova HiRef HITEC Power Protection KyotoCooling MIROTEK Mitsubishi Electric Parus Electro Perkins Engine Rehlko Riello Elettronica Group Saft Shanghai Shenglin M&E Technology Socomec Group SVC Smart Voltage Control Teksan Tempesto Group Toshiba Vertiv HTS-Hosser Telecom Solutions KB BOREY Data Center Investors 3Data Atomdata (Rosatom) DataPro IXcellerate Key Point Linxdatacenter MTS OBIT Rostelecom Selectel Yandex DataHouse New Entrants Liberum Navitas X5 Group Market Segmentation & Forecasts IT Infrastructure Servers Storage Systems Network Infrastructure Electrical Infrastructure UPS Systems Generators Transfer Switches & Switchgears PDUs Other Electrical Infrastructure Mechanical Infrastructure Cooling Systems Rack Cabinets Other Mechanical Infrastructure Cooling Systems CRAC & CRAH Units Chiller Units Cooling Towers, Condensers & Dry Coolers Other Cooling Units General Construction Core & Shell Development Installation & Commissioning Services Engineering & Building Design Fire Detection & Suppression Systems Physical Security Data Center Infrastructure Management (DCIM) Tier Standard Tier I & Tier II Tier III Tier IV Geography Moscow Other Cities Why Should you Buy this Research? This research provides a comprehensive analysis of the Russian data center market, covering key factors such as investment size, facility area, power capacity, and colocation market revenue. It offers detailed insights into data center investments by colocation, hyperscale, and enterprise operators across more than 13 cities, including existing and upcoming facilities. The report examines market trends, growth opportunities, and challenges, supported by a clear assessment of IT load capacity and area developments. It also includes a thorough overview of retail and wholesale colocation pricing, along with forecasts through 2030. Additionally, the study highlights the roles of leading IT infrastructure providers, construction contractors, and investors, supported by a transparent research methodology focused on supply and demand dynamics. This makes the report a valuable tool for anyone looking to understand or invest in Russia's evolving data center landscape. Japan Data Center Market - Investment Analysis & Growth Opportunities 2025-2030 China Data Center Market - Investment Analysis & Growth Opportunities 2025-2030 What Key Findings Will Our Research Analysis Reveal? How big is the Russia data center market? How much MW of power capacity will be added across Russia during 2025-2030? How many existing and upcoming data center facilities exist in Russia? What is the growth rate of the Russia data center market? What factors are driving the Russian data center market? Who are the key investors in the Russian data center market? Why Arizton? 100% Customer Satisfaction 24x7 availability – we are always there when you need us 200+ Fortune 500 Companies trust Arizton's report 80% of our reports are exclusive and first in the industry 100% more data and analysis 1500+ reports published till date Post-Purchase Benefit 1hr of free analyst discussion 10% off on customization About Us: Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services. We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts. Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
Yahoo
20-05-2025
- Business
- Yahoo
What does Paul Singer's fresh stake mean for Equinix?
Introduction Network-dense data center provider Equinix stands to gain from growing cloud adoption as well as advancements like the Internet of Things and artificial intelligence. Cloud service providers compete with it, though, and power outages in important markets might make it more difficult to take on new tenants and lower returns on new construction. Notwithstanding these obstacles, Equinix is well-positioned to benefit from rising data usage in both developed and developing nations. Warning! GuruFocus has detected 6 Warning Signs with EQIX. Competition Equinix has to deal with rivalry from two major areas: direct competitors in the colocation and data center sector, and indirect competitors from the cloud services area. Digital Realty, Rackspace Technology, and CyrusOne are some of the direct rivals that provide alternating services such as colocation and connectivity. As a case in point, Digital Realty, a robust competitor to this company, has the advantage of a wide data center network and a specifically aimed business at hyperscale facilities which are concentrated on big-hitting customers. Not to mention, the cloud power players, such as Amazon Web Services (AWS) and Microsoft Azure, which partially threaten the industry by supplying fully managed cloud services thereby decreasing the dependency on traditional data centers. This paradigm shift toward cloud usage has made it even more urgent that Equinix find other ways to distinguish its products. On top of that, there are also new entrants, like Vapor IO, which are a direct challenge to Equinix in edge computing by delivering special solutions for low-latency, localized data processing. Long-standing telecom companies, including NTT and Verizon, go into play by combining network infrastructure with data center services. This pool of diverse competition presents a multifaceted atmosphere for Equinix which has to address different challenges, such as rising pressures over prices, changing customer preferences, and also newer technologies to sustain its market position. In a bid to stay ahead of the pack, Equinix has a plan which revolves around interconnection, global expansion, and innovation. One of its most important products, Platform Equinix, is what that makes it unique, as it allows customers to connect directly to partners and cloud providers at its data centers. This interconnection ecosystem is like a network effect, as the platform's value increases with each new participant, thereby setting Equinix apart from other wholesalers that promote only their colocation services. Equinix is keen on growing its global supremacy, and for that reason, it is actively penetrating high-growth markets. It has undergone a series of acquisitions recently, with India and Africa being the newest additions, thus bringing it to areas that offer the most excellent opportunities. Furthermore, the partnerships with cloud providers including AWS and Google Cloud are the key factors in the extension of the company's services. The Equinix Cloud Exchange Fabric is the gateway for clients to utilize the low-latency paths connecting these clouds, hence, the organization is not merely a competitor but rather a strategic facilitator of hybrid cloud pathways. Equinix has also placed innovation in the center of everything. The power company is introducing new sustainable technology, such as fuel cells and liquid cooling, to not only lower costs but also meet environmental goals. Besides, the company's Co-Innovation Facility in Washington, D.C. has set the trend for advanced solutions like high-density cooling and software-defined power management, which are being tested out, thus proving that the liquor company is among the lead players in efficiency and performance. Who owns Equinix Paul Singer (Trades, Portfolio) has recently added Equinix to its portfolio with 150,000 shares worth $122.30 million. This helps to understand that Equinix has untapped value opportunity that could be unlocked by managerial and operational changes and Paul Singer (Trades, Portfolio)'s Elliott is renowned for such a job by ramping up pressure on the board. Growth Drivers Due to the data center industry's rapid capital investment in expanding data center capacity due to increased data consumption, Equinix has been generating an average return on invested capital of 7.5% over the last ten years. Over the next ten years, the company's ROICs are expected to rise to an average of 8.6%, which is significantly higher than its cost of capital of 6.7%. The value of Equinix comes from providing dense and highly connected data center ecosystems to a large number of customers, including cloud and network providers as well as smaller businesses that appreciate the close proximity to these cloud and network providers. Since choosing a new location for data storage and connectivity is an extremely expensive endeavor, switching costs are the most common moat source for third-party data centers. By the end of 2023, Equinix's average monthly recurring revenue per cabinet was close to $2,300, or $27,000 annually. However, because tenant leases are typically only two to five years long, it is unlikely that tenants would routinely search for new third-party data storage options because doing so would significantly raise the cost of their data center. Moving data centers also carries a number of other non-financial risks, including security threats, outages, increased latency, and disruptions to the company's core functions. Equinix's most potent moat source is the network effect, which is enabled by its portfolio of extremely dense and interconnected data centers. Equinix has more interconnections than any other data center company, with over 462,000 across its 264 data centers as of 2023. Tenants can connect directly within a site or across Equinix's global portfolio of data centers thanks to these interconnections. Enterprise decision-making about data center selection is heavily influenced by connectivity, which Equinix can profit from. In 2023, its interconnection business will account for 17% of its total revenue, compared to 8% for peer Digital Realty. Since its inception, cloud computing has been seen as a serious threat to third-party data centers; however, cloud providers still spend more at Equinix. Networks, cloud providers, and businesses all gain from Equinix's highly interconnected ecosystem. Network providers gain from greater access and flexibility in managing their IT infrastructure, while cloud and network providers gain from more customers and are willing to pay more. Equinix's monthly revenue per cabinet increased at a 4% CAGR from 2019 to 24 due to its pricing power and capacity to raise prices as the ecosystem's value increases. Rapid technological advancement and significant capital investment, however, are the two primary risks preventing Equinix from classifying it as having a wide moat. Data centers have benefited from the cloud, but the quick development of data center hardware has raised computing efficiency per square foot. In order to support power densities of up to 150 kW per rack, rival Digital Realty is investing in new technologies. This could eventually reduce the need for data center space, resulting in lower utilization of Equinix's data center portfolio and economics that do not support a moat. Financial Metrics The market has fairly valued Equinix's shares. Over the next ten years, Equinix's top-line growth is anticipated to average 8%, propelled by its managed infrastructure and interconnection businesses. With over 16,000 net additions through 2034, the company is anticipated to drive new capacity through cabinets, resulting in low- to mid-single-digit capacity growth. With unit pricing on a per cabinet and interconnect basis increasing by more than 3% yearly, pricing growth in colocation and interconnection businesses is anticipated to be a major source of revenue. To encourage healthy price growth, Equinix is also growing the range of services it offers, such as Equinix Fabrix. Equinix's adjusted EBITDA margin is predicted to increase from 45.2% in 2023 to 50.3% by 2034, indicating improved performance. As the company grows, improvements in SG&A and rental and leasing costs will be the main drivers of cost savings. Due to power limitations in some of its biggest markets, power costs will remain a challenge in the near future. With an average capital expenditure of 30% between 2025 and 2029 and cooling to 16% between 2030 and 2034, capital investment is predicted to stay high in the near future. The demand for data center capacity is anticipated to stay strong but decline from its current levels. Key Risks Tenant leases that last two to ten years shield Equinix from declines in the market. The demand for its data centers is anticipated to continue to be driven by long-term secular tailwinds. With large capital investments in artificial intelligence, the data center sector is undergoing rapid change. Finding the ideal balance between capital investment to meet future demand and avoiding overbuilding and leaving excess capacity is Equinix's biggest risk. Although the demand for data centers is predicted to increase, customers may be able to scale their computing efficiency requirements with less space and power thanks to advancements in semiconductor and hardware technology. Recommendation In more than 72 cities worldwide, Equinix, a pioneer in the colocation data center industry, provides the most network-dense and cloud-dense ecosystem. It has a competitive edge due to its close proximity to networks, cloud providers, and businesses. In order to increase its reach and offer greater value, Equinix has kept up its investments in its connectivity division by purchasing several data center companies in strategic markets. Additionally, it makes investments in the fastest-growing end markets, like its xScale division, which aims to attract major AI investors and well-known cloud providers. When it comes to the biggest secular trends impacting the data center industry, Equinix continues to lead the way. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
