Good morning, and welcome to Data Center Digest.
We’re looking at data centers and the people, technologies, and trends that make them run.

Today’s Newsletter:

🤿 Diving into the new Compass/Schneider deal
💵 Hyperscalers continue to bet on pricey data centers
📫 The data center with its own zip code
Big Deals: DigitalOcean, Microsoft, Edged Energy
Resources: DCD’s AI deep dive, industrial IOT report

Est. read time: 5mins, 15secs

- News -

Diving into the new supply chain deal between Compass and Schneider

In what’s being called a first-of-its-kind collaboration, compass Data Centers and Schneider Electric have announced plans to build a state-of-the-art integration facility to support the increasing demand for modular data centers.

What this means: The two companies are building a joint facility next to an existing Compass data center in Red Oak, TX. The 110,000 sqft facility is a response of the two firms to the profound supply chain insecurities that the digital infrastructure industry is facing.  

What they’re building: The goal of the new operation is to integrate modular data center solutions and build pre-engineered, prefabricated IT infrastructure that will be delivered to Compass and Schneider’s other customers across the US.
Schneider is leaning into the growing industry trend of deploying modular data center solutions to shorten lead times and future-proof data center facilities.

CIO at Compass, Phanney Kim Brevard, has said the new facility will predominantly handle the integration of several technologies, including prefabricated modular data systems, power modules, power centers, all-in-ones, and data halls.
“That’s the result of the extreme demand that we’ve been seeing over the past 12-24 months.”

The site for the new project has been cleared and prepped, and Schneider expects to get cooking this week.

Hyperscalers continue to bet big on pricey data centers

The competition among the three major cloud providers, AWS, Microsoft, and Google Cloud, is driving costly infrastructure expansions as they strive to accommodate growing demand, says a July report by Forrester.

Notably, new data centers have been established across various U.S. locations, with AWS now operating 32 local zones globally. The need for these expansions comes with the rising necessity for cloud services, which are now seen as default for modern companies. More than 88% of companies using public cloud services work with more than one provider, with over two-thirds relying on public cloud as their primary computing platform.

Principal Analyst at Forrester, Lee Sustar, states that these cloud providers now face the challenge of accommodating AI workloads while building smaller data centers for edge computing, leading to increased operating costs.
Moreover, new functionalities and capabilities are continually being added, like generative AI and industry-specific verticals, to improve service speed and reliability.

This investment comes at a time when revenue growth has slowed for all three of the major hyperscale operators, as enterprise customers place higher scrutiny on cloud spending amid economic uncertainty.

These infrastructure expansions are expected to double data center storage and compute capacity over the next five years, driven primarily by the three hyperscalers, as per Synergy Research Group's analysis.

- What’s More -

This Philadelphia data center has its own zip code

With Philadelphia's cityscape sliced into almost 90 postal ZIP codes, some buildings and companies have been so inundated with mail, they've won the coveted badge of owning their own ZIP.

Ever scrolled your favorite Netflix show in Fishtown and wondered how it arrives so smoothly on your screen? Give thanks to the colossal data center sitting at 401 N. Broad St, a citadel of high-speed internet boasting its very own ZIP code - 19108.
This behemoth of a building houses data giants like Sungard Availability Services and Netrality Data Centers, serving as a nerve center for key internet exchange points like NYIIX and PhillyIX.

These points, dubbed IXPs, are the superhighways of the digital world, ensuring your data zips around locally rather than embarking on a round-trip to New York. All happening in the belly of one building, under one ZIP code - that's quite a marvel!

But why do these buildings command their own ZIPs? According to USPS spokesperson Ray V. Daiutolo Sr., it's all about the volume - a tsunami of mail that demands its own unique identifier.

With the historic 401 N. Broad building - a.k.a the Terminal Commerce Building - bearing this distinction, it proudly stands as a titan of high-speed internet while still serving as a landmark on the National Register of Historic Places.

So, even though this art-deco building now pulses with the heartbeat of digital traffic, you can still feel free to drop them a line of snail mail!

- Big Deals -

• DigitalOcean just purchased cloud infrastructure provider, Paperspace. The deal, worth $110 million, aims to help DigitalOcean develop AI solutions for smaller, more budget-conscious customers.

• Net zero data center provider Edged Energy has filed plans for a new data center in Mesa, AZ. The 126,000 sqft facility will be a zero-water, zero-carbon data center.

• Microsoft gobbles up another 14 acres in Loudon County. The $15 million acquisition is on a plot already zoned for data center use and is currently owned by a mulch company.

- Resources -

Daily Dall-E

It’s ruff work but someone’s gotta do it!

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- Taylor