Hyperscale Data Center Bookings Seeing Sharp Rise, Says Wells Fargo

Global hyperscale data center bookings will be up sharply in 2020, said Wells Fargo’s Eric Luebchow in a Wednesday note to investors. Hyperscalers, including Microsoft, AWS, Facebook and Google, “are taking down meaningful capacity in the U.S. and Europe and shifting more toward third-party leasing given the demand spikes on their platforms,” he said, noting Northern Virginia leased more capacity this year than in all of 2019. “While several private operators have won significant new hyperscale deployments, we think the broad increase in activity will benefit the operators that have these hyperscalers as existing customers,” Luebchow said: “Pricing in competitive U.S. markets remains at or near historic lows, but appears to have stabilized.”