Key Takeaways DLR benefits from robust data center demand fueled by cloud, IoT and Big Data growth.The company's 308 global data centers serve 5,000 customers across diverse markets.DLR's liquidity and development pipeline support continued expansion and portfolio strength.Digital Realty (DLR) is well-positioned for growth with decent leasing activity amid robust demand for data centers, a diverse tenant roster, accretive buyouts, development efforts and balance sheet strength.Last week, Digital Realty anno ...

October 8, 2025 04:00 AM GMT AlphaWise Global Data Center Capacity Growth to Increase 6x - The Data You Haven't Seen This follow up to our recent note Global Data Center Capacity Growth to Increase 6x' provides further colour on our AlphaWise surveys of US and European data operators and their builders and suppliers. We drill down to show country differences on past and future bottlenecks, factors driving DC expansion and ESG considerations, as well as the evolution of DC total costs (potential inflation) b ...

Company Overview - Sify Infinit Spaces Ltd. is preparing to file for a $500 million initial public offering (IPO), potentially becoming the first Indian data-center operator to list on stock exchanges [1] - The IPO will consist of both new and existing shares, with ongoing discussions that may alter the details [1] Industry Demand - The demand for data centers in India is expected to more than double in the next three years, requiring an investment of approximately 900 billion rupees ($10.1 billion) to support this expansion [3] - The surge in demand is driven by increasing digital consumption, the adoption of artificial intelligence, and data localization initiatives [2][4] Investment Landscape - Many foreign corporations and investment firms are heavily investing in the Indian data center sector due to strong demand prospects [4] - Sify Infinit operates 14 sites across India and is backed by Kotak Private Equity Group [5] IPO Details - The company's board approved the potential IPO on September 25, with bookrunners including Kotak Mahindra Capital Co., Morgan Stanley, JPMorgan Chase & Co., Citic Securities Co., and JM Financial Ltd. [5]

Key Points AT&T could lower its borrowing costs if the Fed cuts rates. Digital Realty Trust's dividend yield should be more attractive to bond investors in a lower-rate environment. D.R. Horton should be a big winner if a Fed rate cut leads to lower mortgage rates. 10 stocks we like better than D.R. Horton › Today's the day (assuming you're reading this on Wednesday, Sept. 17, 2025). The Federal Open Markets Committee (FOMC) is widely expected to announce a lower federal funds rate at the conclus ...

Company Overview - Sify Infinit Spaces Limited (SISL) is a subsidiary of Sify Technologies Limited, focusing on colocation services for Hyperscalers, Enterprises, and neo-Cloud prospects [6] - As of June 2025, SISL operates 14 Data Centers across 6 cities in India [6] Leadership Appointment - Mr. Mark Adams has been appointed as a Non-Executive and Non-Independent Director on the Board of SISL [1] - Mr. Adams has extensive experience in Communications Infrastructure and Technology, previously serving as Chief Development Officer at Equinix, where he grew revenue from $33.87 billion to $396.64 billion over 10 years [2] - His current roles include Senior Advisor to Global Infrastructure Partners and Board Advisor for Cyrus One and True IDC [3] Strategic Importance - The Chairman of SISL, Mr. Raju Vegesna, emphasized that Mr. Adams' multi-geography exposure and technology foresight will be crucial for scaling SISL's hyperscale and enterprise business [5] - Mr. Adams noted that SISL is at an inflection point in its data center trajectory, having established a strong position over 25 years in delivering capacity to global leaders in India [5] Client Base and Infrastructure - SISL has a diversified client base of over 500 clients as of June 30, 2025, which includes prominent Hyperscaler and Enterprise clients [7] - The company's infrastructure includes Data Centers and partnerships with global technology majors, along with expertise in business transformation solutions modeled on the cloud [7]

Summary of GDS Holdings Ltd Conference Call Company Overview - **Company**: GDS Holdings Ltd (GDS.O, GDS US) - **Industry**: Greater China Telecoms - **Market Cap**: Rmb48,726 million - **Current Stock Price**: US$34.56 - **Price Target**: US$54.00, indicating a 56% upside potential [5][5][5] Key Points Industry Dynamics - **Demand for Data Centers**: GDS is experiencing decent demand from traditional CPU businesses, particularly in food delivery, which has expanded from key customers. Orders are primarily utilizing existing inventories, requiring limited incremental capital expenditure [1][1][1] - **Supply Constraints**: The company noted that government window guidance is restricting incremental supply to the market, which could lead to better pricing in the future if sustained [3][3][3] Financial Outlook - **Capex and Capacity**: GDS aims to deliver 200-300MW of annual capacity in the future with approximately Rmb5 billion in capital expenditure per year. Even without breakthroughs in NVIDIA chipset supply, the company believes it can secure orders backed by domestic GPUs and traditional workloads [2][2][2] - **Projected Revenue Growth**: Revenue projections for the upcoming fiscal years are as follows: - 2025: Rmb11,514 million - 2026: Rmb12,964 million - 2027: Rmb14,664 million [5][5][5] Investment Risks - **Market Risks**: Potential risks include increased competition leading to pricing compression, a reversal of the downward trend in interest rates, and hyperscalers reducing their capital expenditures, particularly in AI investments [10][10][10] - **Valuation Methodology**: The base case valuation includes an estimated EV/EBITDA multiple of 15x for GDS China and 17.5x for GDS International, with a discount applied due to GDSI's shorter track record [10][10][10] Analyst Ratings - **Stock Rating**: Overweight - **Industry View**: Attractive [5][5][5] Additional Insights - **EPS Projections**: Expected EPS for the upcoming years are projected as follows: - 2025: (Rmb2.96) - 2026: (Rmb1.74) - 2027: Rmb2.50 [5][5][5] - **52-Week Stock Range**: US$15.91 - US$52.50 [5][5][5] This summary encapsulates the critical insights from the conference call, highlighting GDS Holdings Ltd's current market position, financial outlook, and potential risks within the Greater China Telecoms industry.

Core Insights - Iron Mountain (IRM) is positioned to benefit from a recurring revenue model and expansion in the data center segment, supported by a strong balance sheet [1][5] - The company faces challenges from competition and high interest expenses [1][6][7] Revenue Performance - Iron Mountain's core storage and records management business generates steady recurring revenues, with organic storage rental revenues increasing by 9.2% year-over-year in Q2 2025, and an estimated 10.2% growth for the full year [2][8] - The Global Data Center Business achieved a revenue growth of 24% in Q2 2025, with projected data center revenues of nearly $800 million for 2025, indicating approximately 30% year-over-year growth [4][8] Expansion Efforts - The company is expanding its data center segment, including a strategic partnership with Ooredoo Group to acquire a minority stake in MENA Digital Hub, enhancing its capabilities in connectivity and colocation [3] - Iron Mountain's data center operating portfolio is expected to nearly triple from 450 MW to 1.3 GW once fully developed [4] Financial Position - As of June 30, 2025, Iron Mountain maintained a strong balance sheet with a net lease-adjusted leverage of 5.0X, the lowest since its REIT conversion in 2014 [5][8] - The company has a weighted-average maturity of 4.5 years, providing financial flexibility for growth opportunities [5] Competitive Landscape - The records and information management services industry is highly fragmented, leading to significant competition that may pressure margins due to aggressive pricing [6] - Despite a recent announcement of rate cuts by the Federal Reserve, high interest rates remain a concern, with a projected 13.2% increase in net interest expenses for 2025 [7]

Core Insights - The world's electricity consumption is projected to grow 4% annually through 2027, driven by electrification, AI data center expansion, and industrial manufacturing resurgence [1] - Equinix is adopting a diversified portfolio approach to address global energy challenges by investing in innovative power technologies and collaborating with utility partners [2][3] Energy Demand and Infrastructure - Rising electricity demand is straining utility providers and aging electrical grids, necessitating new sources of electricity to support growth [1] - Equinix emphasizes the importance of reliable, sustainable, and scalable energy infrastructure to meet increasing energy needs for AI and digital services [3][6] Technological Innovations - Equinix is investing in advanced nuclear technologies and fuel cells to enhance energy capacity and reliability [2][4] - The company has agreements with various partners, including Oklo for small modular reactors and Bloom Energy for solid-oxide fuel cells, to expand onsite power generation [5][4] Commitment to Renewable Energy - Equinix aims to source 100% clean and renewable energy across its global portfolio by 2030, having already achieved 96% renewable energy coverage globally [6] - The company operates 250 sites with 100% renewable energy coverage as of 2024 [6] Data Center Efficiency - Equinix is implementing ASHRAE A1 Allowable standards to optimize energy use in data centers, allowing for wider operating temperature ranges [7] - Plans to expand advanced liquid cooling technologies to over 100 data centers globally are underway to enhance energy efficiency [7]

Summary of Conference Call Notes Industry Overview - **Industry**: Data Centers in China - **Key Players**: GDS, VNET, Sinnet, DayOne Core Insights and Arguments - **Upcoming Earnings Reports**: China data center operators are expected to report 2Q25 results soon, with GDS and VNET anticipated to show revenue growth of +11% and +15% year-over-year respectively, and adjusted EBITDA growth of +6% and +21% year-over-year [1][3] - **Chip Supply Constraints**: There are expectations of soft order intakes due to chip supply constraints and reduced capital expenditures from hyperscalers, with Tencent's 2Q25 capex down by 30% quarter-over-quarter to US$2.66 billion, despite a year-over-year increase of +119% [1] - **C-REITs Performance**: Following the listing of China's first two data center C-REITs, the Southern GDS Data Center REIT and Southern Range Tech Data Center REIT saw share price increases of +37% and +36% respectively [1] - **Domestic Order Visibility**: Commentary on domestic order visibility for the second half of 2025 will be crucial for share price movements in the sector, especially in light of US chip export approvals and domestic usage caution from Chinese authorities [1] DayOne's Performance - **Growth Strategy Execution**: DayOne has made significant progress in its growth strategy, securing 974MW of total capacity in the SIJORI region, which is approximately 25% of the region's total capacity [2][20] - **Debt Financing**: DayOne raised nearly US$4 billion in debt and secured agreements for over 500MW of green power, indicating strong financial backing for its expansion [2] - **Construction Updates**: DayOne has commenced construction on the SG1 facility in Singapore, expected to be operational by 2026, and is also developing a data center campus in Tokyo with an initial capacity of 18MW [2][15] - **Regional Expansion**: DayOne is expanding into Thailand and Finland, with a combined potential addition of ~220MW to its committed capacity, bringing the total to ~750MW [2][15] Investment Ratings - **GDS and VNET**: Both companies are rated as "Buy" due to their strong market positions and growth potential [3][22][26] - **Sinnet**: Rated as "Sell" due to market share losses and limited demand recovery visibility [3][28] Additional Insights - **Cloud Revenue Growth**: Anticipated acceleration in cloud revenue from major players like Alicloud, Tencent Cloud, Baidu Cloud, and Kingsoft Cloud, projected at +21% year-over-year for 2Q25 [18] - **Market Dynamics**: The data center sector in Southeast Asia is expected to benefit from rising cloud penetration and expansion by US and Chinese hyperscalers, alongside increased demand for AI capabilities [9][15] Risks and Considerations - **GDS Risks**: Key risks include below-expected demand, slower overseas revenue ramp-up, and pricing pressures [23][25] - **VNET Risks**: Risks involve financing challenges, execution issues, and geopolitical uncertainties regarding AI [27] - **Sinnet Risks**: Limited demand recovery and market share erosion pose significant risks for Sinnet's future performance [29]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenue of $44 million, down 10% from $49 million in Q1 2025, attributed to rising network cash rates and summer power prices in Texas [33][34] - The GAAP net loss for the quarter was $46 million, or $0.12 per share, compared to a net loss of $15 million, or $0.05 per share in Q2 2024 [34][35] - Adjusted earnings for Q2 2025 were $30 million, or $0.08 per share, up approximately 400% from $6 million in the previous quarter [34][36] - The company’s cash position increased from $23 million in March to $63 million in June, reflecting the remaining proceeds from a convertible offering and opportunistic Bitcoin sales [42] Business Line Data and Key Metrics Changes - The company mined a total of 4.44 Bitcoin in Q2 2025, with 4.34 Bitcoin from Odessa and 10 Bitcoin from Black Pearl, generating revenue at an average price of approximately $99,700 per Bitcoin [37] - Black Pearl Phase 1 contributed about 2% of quarterly revenue, with expectations for significant growth in future quarters as production ramps up [24][37] Market Data and Key Metrics Changes - The average all-in electricity cost per Bitcoin produced at Odessa was approximately $24,686, while the combined all-in electricity cost for joint venture sites was roughly $44,594 [22][24] - The company’s projected all-in weighted average power cost remains competitive at $0.31 per kilowatt hour [8] Company Strategy and Development Direction - The company is focused on strategically evaluating funding options to support growth while minimizing dilution, having raised approximately $168 million in net proceeds from a convertible offering [12] - Black Pearl Phase 2 is being developed to support both hydro Bitcoin mining and HPC compute applications, with a flexible design to accommodate future tenant demands [15][19] - The company aims to capitalize on the growing demand for power and tightening supply in the HPC market, with ongoing discussions to secure advantageous deals [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of Barber Lake and the potential for Black Pearl Phase 2, highlighting the increasing energy demands of advanced AI systems [14][18] - The company anticipates that the demand for energy will continue to grow, positioning itself to support tenants as the HPC market scales [19][21] Other Important Information - The company successfully paid off all short-term borrowings, reducing its liabilities significantly from $139 million in Q1 to $53 million in Q2 [46][48] - The company’s operating capacity currently stands at 477 MW, with potential pipeline capacity expansion of up to 2.6 GW in the coming years [10] Q&A Session Summary Question: Can you quantify the time to convert from hydro Bitcoin mining to AI HPC compute? - The company expects to have the full 150 megawatts ready by the back half of next year, with the ability to accommodate fast requests for HPC [51][53] Question: What would trigger hyperscalers to choose an operator in your peer set? - There has been increased interest from hyperscalers, particularly in July, with many reaching out for discussions [57][59] Question: What are the potential differences in costs affiliated with the hybrid model compared to a pure mining site? - The estimated cost for the hybrid model is about $1.5 million per megawatt, with additional costs depending on tenant requirements [63][65] Question: What sites are being actively marketed for HPC? - The primary focus is on Barber Lake, Black Pearl Phase 2, and Stingray, with ongoing discussions with potential tenants [87][89]