What's in the News, page-178

The point you make is a good one, however its not like there was little competition back in the day. Metronode were competing head on before they sold to Equinix, and Equinix were established in Australia with capacity available before NextDC came along. You dont need to be the only data centre in a city to do well though. There is a massive shift towards cloud and colocation as older facilities gradually shut down and telcos and MSP's move away from building their own space. Coupled with the growth in tech and demand for DC space is not slowing down, its increasing. Multiple service providers for colocation will become the norm I think and we wont see monopolies form. DC space is turning into a commodity though.

Singapore and Japan would be far harder to compete in though given how well established some of the larger players are. Also these are locations where the large cloud companies are building their own data centres and its a very different market. Google or Facebook are not going to start building data centres in Perth in Melbourne, but they are building their own in Singapore and already have their own

Google has invested over $850 in 3 data centres in Singapore - https://www.zdnet.com/article/google-building-third-singapore-data-centre/
Singapore is the third most competitive market in the world now - https://www.straitstimes.com/business/economy/singapore-data-centre-market-3rd-most-competitive-globally-report
Facebook dropping almost a $1 Billion into Singapore - https://eandt.theiet.org/content/articles/2018/09/facebook-to-build-1bn-data-centre-in-singapore/

Im glad to see NXT is looking at expansion outside Australia though. Can only build so many data centres in Aus.