With society under physical lockdown, we have never been more reliant on data centre facilities, as we increase our virtual (on-line) presence.
Data centres, the physical home of the internet, are specifically designed to provide operational continuity in adverse conditions. However, they have never had to face a global pandemic before.
Indications are that data centre facilities continue to provide digital infrastructure services without interruption or interference, despite the increased demand brought on by social distancing.
Data centre operational revenues appear robust with their systems working harder than ever. Demonstration of this business continuity has filtered through to the share price of many of the best-known data centre operators, which have seen a positive bounce.
This financial and operational performance has stoked investor confidence in the sector, increasing appetite from traditional and infrastructure funds through to specialist data centre investors.
The largest data centre users (i.e. Microsoft, Amazon Web Services and Google) have global expansion strategies that are already well underway. They will continue to underpin the market with a mixture of self-operated facilities and co-location (supporting third party data centre growth).
We do not envisage the virus impacting these plans although construction projects may encounter delays.
So far, the data centre sector has risen to the operational task at hand fuelling the global economy and driving demand. Recognition that the sector is resilient and that there is life after lockdown.
