Will cloud giants really drive colos off a financial cliff?
"I think Jim maybe isn't aware that demand has never been stronger in our space," he told the financial news network."He refers to our cloud service providers as our competitors, but we view them as our partners, and they view us as partners. We enable their growth around the world."
Stein isn't wrong to point out the colocation provider's geographic reach, which remains one of colocation providers' biggest advantages over their cloud counterparts. The major cloud providers operate a relatively small number of large datacenters, predominantly clustered in key metros around the world.
Speaking to CNBC this week, Stein hammered this point, arguing that the company was largely isolated from rising interest rates for similar reasons. Despite these claims, datacenter REITs, and the broader tech space in general, have seen their valuations decline precipitously since the start of the year.
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