Published on 18th February 2016.
Recently, I thought of the question of what are the public listed data center companies or REITS? I put my favorite search engines to work and a bit of checking about, what I found is interesting to say the least.
While the public don’t hear much about data centers, they are here and nowadays there are quite a fair number of public listed companies with significant portfolio of data center assets or are highly dependent on data center for a significant share of their revenue.
Now, for the purpose of this post besides it must be listed on a public stock exchange, I define the criteria of what qualify as a data center service provider of having met at least two of the following conditions:
- It has more than 6 data centers under its control.
- The data center business account for more than 25% of its revenue
- Contribute to at least 10% of its profit
Listed data center REITs definitely fits the above profile. How about Telcos? Telcos do have a large number of data center, for example the big three telcos in China owns 75-85% of the data center market between them, but data center is not significant enough for these big telcos, so while you can buy China Telecom, China Unicom, and China Mobile shares, let’s put them aside for the purpose of this article.
I cast the net wide, not limited to the US stock exchanges, and the list I had come up with is as follows (s/n, name, stock symbol or numbers, stock exchange) :
- Digital Reality (DLR), NASDAQ
- Dupont Fabros Tech (DFT), NYSE
- CoreSite (COR), NYSE
- Quality Technology Services (QTS), NYSE
- CyrusONE (CONE), NASDAQ
- IronMountain (IRM), NYSE
- Equinix (EQIX), NASDAQ
- InterNAP (INAP), NASDAQ
- InterXion (INXN), NYSE
- IOMart (IOM), London
- Dada Group (DA), Milan
- Retelit (LIT), Milan
- Rackspace (RAX), NYSE
- NEXTDC (NXT), ASX
- Vocus Communications (VOC), ASX
- Asia Pacific Data Centre (AJD), ASX
- Internet Thailand Plc (inet), BKK
- CSF Asia, London AIM
- 21vianet (VNET), NASDAQ
- DrPeng (600804), Shanghai
- Keppel DC REIT (AJBU), SGX
- Grand MING group – itech data centers (1271), HKEx
- Sunevision – iadvantage (8008), HKEx
Note:There would be more but some were merged under M&A (e.g. Telecity by Equinix) or are bought and turned private (e.g. COLT by Fidelity).
It turns out that there are whole lot of data center service providers we can look at on the stock market, read their reports and consider to buy them, and in Asia (including Australia) there are at least 10 listed entities. As suggested below in the AsiaOne link, the number of such listed data center REITs or service providers will grow as these companies tap the capital market to grow their reach and grow with their customers, and achieve better economy of scale.
There are a lot more data centers that are privately owned by such as Switch/SuperNAP, Global Switch, SunGard, or H5. And there are big data centers owned and operated by those huge Internet companies like Google, Microsoft, Apple, Facebook, eBay, Alibaba, Amazon etc.
Another piece of interesting information, there are a bunch of other developers or REITs that happens to have one or more data center property under its belt. E.g. in Singapore there are Kingsland, Ascendas REIT, Mapletree industrial trust etc.
One option to consider is to invest into listed companies that its main line of business is also growing and has sizable DC portfolio, KDDi with Telehouse.
Some private data center companies bonds on the stock exchanges, for example DigiPlex and Global Switch had issued bonds via Oslo and London stock exchanges respectively.
Finally, these data centers serves big clients such as Amazon, Google, Microsoft, Alibaba, Tencent, so you may want to consider buying the big user of big data center spaces since this indicates that they are growing strong.