DC Two confirms plans to bring new Perth-based data centre online ahead of schedule

DC Two ASX DC2 Bibra Lake data centre cloud services
DC Two anticipates maiden revenue from the Bibra Lake data centre in April.

Vertically-integrated cloud services provider DC Two (ASX: DC2) has made moves to fast-track the development of a new WA-based data centre and bring it online ahead of schedule.

The revised plan will allow the newly-listed company to potentially achieve first revenue from the 3.0 megawatt leased facility by April.

Located at Bibra Lake in Perth’s southern suburbs, the new data centre will eventually become a certified tier three provider capable of servicing mid-market and enterprise customers requiring tier three compliance, security and access accreditations.

Customers will be able to use Vocus or Telstra as their communications provider with dual path connectivity already installed at the facility for both carriers.

DC Two said it would continue negotiations to secure other providers to the centre.

Staged deployment

Stage one deployment of the Bibra Lake centre will be powered and cooled by fully-redundant and independent systems with components being tested and used to maintain ideal environmental conditions suitable for continuous and reliable operations.

The systems will be run autonomously of stage two deployment components.

The majority of stage one components are able to be reconfigured to provide scale, capacity and redundancies for future growth, enabling DC Two to generate revenue sooner than planned while protecting critical capital and minimising waste.

Ongoing demand

DC Two managing director Justin Thomas said ongoing demand for cloud and data centre services was behind the decision to fast-track the Bibra Lake facility.

“We have been working very hard over the last few months with our staff and engineers and are proud to have developed a plan which enables us to bring Bibra Lake online quickly using components which can be easily migrated into the final tier three build,” he said.

“DC Two has a strong history of getting ‘the most out of the least’ and [our] stage one deployment is another example of this.”

He said customer and reseller partner feedback indicated potential demand to be hosted within the completed facility.

Emerging player

DC Two is an emerging player in the Australian data centre and cloud sector, currently servicing over 300 businesses from facilities in Perth and Darwin.

The company posted a recurring revenue for the 2020 financial year of $1.8 million,  achieved with limited capital and providing stable income and a commercial foundation for the business with scope and strategy in place to scale.

DC Two seized the opportunity to lease the new Bibra Lake facility when the prior tenants vacated after pouring millions into the project, leaving the landlord with a nearly-finished, design-accredited data centre with no route to completion or market.

Industry growth

The data storage industry has grown considerably over the past decade, and research suggests the Australian market will grow to $3.76 billion by 2025.

The global coronavirus pandemic has pushed more users online and increased reliance on digital tools for remote working, remote learning, video conferencing and online shopping, leading to a surge in demand for Australian data centre capacity and cloud services.

US research firm Frost and Sullivan has estimated more than $770 million will be invested into the Australian data centre market between now and 2023.

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