How are new megatrends such as Industry 4.0, IoT and 5G impacting the demand on data centres and business models?
With the introduction of 5G services, IoT etc. which will be enabling smoother and faster service in this sector when combined with Artificial Intelligence (AI) and Machine Learning (ML), robotic and cloud, to name a few, the adoption of technology is looking more promising. I believe the megatrends have changed the question from ‘if’ to ‘how much’. The increasing need for data and tremendous growth in cloud adoption has left hyperscale cloud providers and largescale enterprises with no choice but to expand. 5G companies will massively increase the number of access points and develop new data centres with the aim of clients in Rwanda as it does in other
countries by building a world-class ecosystem to which the Rwandan market can connect.
Another colocation provider within the industry also making strides is Digital Realty, the largest global provider of cloud- and carrier-neutral data centre, colocation and interconnection solutions. The organisation, together with Mivne Real Estate, recently announced the formation of a joint venture, entry into the Israeli market and the planned development of a multi-tenant data centre campus in Israel.
Digital Realty’s position as a leading provider of digital infrastructure capacity in the broader Mediterranean region, including presence in Athens, Barcelona and Marseille, will be further enhanced by this new location. The joint venture, which will operate under the brand name ‘Digital Realty Mivne’, will serve as a strategic partnership of Digital Realty with Mivne, a market-leading real estate developer, owner and operator that has developed many large-scale projects across Israel and has an extensive land bank.
Approximately half of the world’s population resides within a 3,000-mile radius of the centre of the Mediterranean. Telegeography notes that international bandwidth in the Middle East has seen over 30% compound annual growth since 2016, representing an overall increase in transmission capacity to the region of almost 200%. Israel is emerging as an alternative cable interconnect route between the Mediterranean Sea and the Red Sea and the new campus will be located at a key intersection along the global Internet highway across the Mediterranean region, connecting Europe to the west and Asia, the Middle East and eastern Africa to the east. This new route enhances the availability and resilience of international subsea cable systems. The first subsea cable systems to traverse Israel terrestrially have already been announced and further systems are anticipated.
Israel is also a global centre for technology innovation and is regarded as the seventh most innovative country in the world, with the highest percentage of GDP spent on research and development and the highest venture capital (VC) investment per capita, with over 500 multi-national companies (MNCs) from 35 countries undertaking innovation in Israel. In addition, the four largest cloud service providers have all announced that they will be building cloud infrastructure in Israel. All of these macro trends are driving significant demand for digital infrastructure throughout Israel. Digital Realty Mivne expects to develop a multi-tenant data centre campus in Petah Tikvah, the primary connectivity hub in Israel. The data centre campus will support the development of up to 20 megawatts (MW) of installed IT load. Delivery of the initial phase is anticipated in 2023, subject to customer demand. “[This] collaboration marks the beginning of a new chapter for Digital Realty’s operations, customers and partners in the Middle East,” said Digital Realty Chief Executive Officer, A. William Stein. “We expect this partnership to further accelerate our growth while enhancing our ability to support our customers’ Digital Transformation across the globe.”
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