Couldn't agree more @bumskinsI think the shorts are due to the...

Couldn't agree more @bumskins

I think the shorts are due to the poor execution on S2. I did numerous site visits to S2 and spoke to the builders and for over 12 months they said it was going to be late by a while. Craig unfortunately hasn't been transparent. They have known for some time it was going to be really late but you wouldn't know it.

I can understand the investment in M2 before S2 as M1 was a runaway success compared to S1. However the growth of both AWS and Google who have their regions in Sydney caught the market by surprise. The canary in the coal mine for demand was Equinix's acquisition of Metronode. Equinix realized they couldn't build quick enough.

i was on the analysts call when they released the full year financials in Aug. Craig did call out there was some early discussions by Hyperscalers for Melbourne. I think it could be 12-24 months before contracts are awarded then another 12months plus to ramp up. When Hypersclers build out an Availability Zone or Region its literally a $100mil investment. They need multiple datacentre provides, the physical server, networking, etc...

I also think Perth is likely to host Google's second region in Australia and thus why NXT is building a 20MW datacentre there. If you read between the lines of the below article comments from Colin Timm, Google ANZ MD about DR and the subsea cables (INDIGO has landing points in Sydney and Perth) Perth is the logical place. This gives Google an amazing DR story, whilst low latency with the INDIGO cable.

https://www.computerworld.com.au/article/666016/google-eyes-second-australian-cloud-region-keen-host-classified-data/

Thirdly i think Microsoft (or another Hyperscaler) might open an AZ in Brisbane. I say this because AirTrunk is building a site in Brisbane. AirTrunk only services Hyperscalers so its an interesting move by them. As mentioned before an AZ requires at minimum 2 and often 3 or more datacentres. So the hyperscaler is likely to utilise Euqinix, AirTrunk and potentially NXT datacentres.

https://www.itnews.com.au/news/urbis-files-plans-for-brisbane-data-centre-build-513960