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COVID-19 Bulletin2 v2
COVID-19 Bulletin2 v2
COVID-19 Bulletin2 v2
RESILIENCY
COVID-19 Update
Editors
Andy Lawrence, Executive Director of Research, Uptime Institute
Rhonda Ascierto, Vice President of Research, Uptime Institute
In this report
COVID-19 in data centers: Risk and reality 2
Top concerns of data center leadership 4
Pandemic is causing outages, critical incidents 5
Data center projects delayed, but activity continues 7
Critical industry exemptions — update 9
Further resources 10
COVID-19 Bulletin 2 v1.0. Published: April 23, 2020. Last update: April 23, 2020
COVID-19: Uptime Institute Bulletin No. 2
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The impact of these delays will be felt across the sector, but especially
by larger equipment suppliers and services companies. Schneider
Electric and Vertiv have both warned of revenue shortfalls, although
supply chain issues were cited as the primary reason.
For the most part, stock exchanges have been more gentle on data
center and internet stocks than on the market generally. Some analysts
have seized on the share price performance of major data center and
related stocks as a sign of sector resiliency. But the extremely strong
performances of Equinix and Digital Realty (both traded at record highs
in April) is in part due to their status as REITs (real estate investment
trusts), which are income bearing. High demand for bonds has driven up
prices and suppressed yields, while most equities have plummeted. As a
result, data center REITs have looked more attractive.
To add the sector’s concerns, Google and Microsoft, widely seen as two
companies with strong positions, have announced spending and hiring
freezes. Google’s Chief Executive Officer told Bloomberg that Google is
“recalibrating the focus and pace of our investments in areas like data
centers and machines.” Given that major internet and cloud companies
are key drivers in colocation growth, this could ripple across the sector.
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But these measures are short term — overall most operators continue
to spend. Alibaba, the leading cloud computing provider in Asia Pacific,
recently announced plans to spend $28.2 billion (200 billion yuan) on
its cloud infrastructure, including data centers, operating systems, IT
hardware and networks during the next 3 years. The company said the
investment decision was prompted in part “to help businesses speed
up the recovery process” and to provide cloud-based services “to
support their digital transformation in the post-pandemic world.” Equinix,
meanwhile, has joined forces with GIC, the Singapore government’s
sovereign wealth fund, on a $1 billion project to build three hyperscale
data centers in Japan.
Evidence from Uptime Institute’s roundtable meetings in recent weeks
suggests that at some data center sites, construction and other major
projects have continued or are about to restart after a pause.
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Table 1. Exemption status of data center, telco, digital infrastructure and IT staff from work-commute
restrictions during the COVID-19 pandemic*
*
Examples only, not a comprehensive list. Accurate at the time of publication; there are regional differences within some countries.
**
CNI, Critical national infrastructure
Source: Uptime Institute and government websites, April 23, 2020.
Further resources
Uptime Institute
COVID-19: Minimizing critical facility risk
A library of resources on maintaining operations and business
continuity during the pandemic. (Available in Chinese, English and
Spanish.)
COVID-19: Q&A
Advice on how IT and mission-critical operations can reduce risk from
coronavirus, based on questions asked at Uptime Institute virtual
events.
• Part 1: Staff management
• Part 2: Site sanitation and security
• Part 3: Deferred maintenance, remote work, supply chain, long-
term outlook
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Regional support
For regional information, advice and support, contact:
ASHRAE
Guidance for building operations during the COVID-19 pandemic
Heating, air conditioning and ventilation strategies for facilities
managers.
techUK
COVID-19 information hub
Clearinghouse of COVID-19-related information specific to data
centers in the UK.
Insights, information or experiences to share? Do you need advice or support? Contact info@uptimeinstitute.com.
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