Magnite opens new data centre in Singapore, replaces its Hong Kong facility
Published 29 March 2021
Magnite has opened a new data centre in Singapore to replace its Hong Kong facility.
The launch of the new data centre helps Magnite, the world’s largest independent sell-side advertising platform, serve the pandemic-led demand surge for online activities in the APAC region.
The move which co-locates its platforms to the same city will standardise the company’s operations and strengthen its ability to support increased traffic, which surged 47% year over year globally in 2020, as per a CBRE’s report.
“By unifying and standardising our omnichannel platform, we’ll be more agile, proactive and efficient,” said Magnite chief technology officer Tom Kershaw. “Our tech stack needs to evolve with the demands of the industry.”
Having launched after a merger deal between Rubicon Project and Telaria, NASDAQ-listed Magnite debuted in April 2020 and operated across North America, Europe, Middle East, Africa, and the Asia Pacific.
The company reported a 69 per cent year on year revenue growth in the fourth quarter of 2020. Connected TV (CTV) and Online Video (OLV) formats contribute two-thirds of its total revenue.
There is more clarity needed in the new investment in the data centre of Magnite as Singapore’s halt in data centre construction has still been in place since 2019. The moratorium has tightened its co-location data centre vacancy to below 5 per cent, among the greatest in Asia Pacific Tier 1 markets (Tokyo, Sydney, Singapore and Hong Kong SAR), according to CBRE.
Last year, the impact of the national security law in Hong Kong led many companies to shift their data centres to Singapore.
“The role of Singapore has become more vital especially after Hong Kong has faced a new security law and associated rising political tensions,” Cynthia Ho, senior research manager for Enterprise Server and Data center at IDC Asia/Pacific, told Futurecio. “We have seen companies gradually moving their IT/datacenter investment decisions from Hong Kong to Singapore in the past 6-12 months.”
Last year, Reuters also reported that South Korea’s internet giant Naver also moved its data centre from Hong Kong to Singapore. Still, Hong Kong accounted for 54 per cent of total investment into the APAC data centre market in 2020.
According to BRE’s new Asia Pacific Data Trends 2H2020 report, Singapore and Sydney registered the strongest data centre demand, mostly originated from hyperscale cloud providers such as AWS, Microsoft Azure, Google Cloud, Tencent Cloud, and Alibaba Cloud. Last year, Cushman & Wakerfield (C&W) also ranked Singapore among the top six competitive data-centre markets worldwide.