DC Two secures $1.77m worth of data centre contracts
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Data centre, cloud and software business DC Two has secured a series of agreements worth a combined $1,775,538 over three years for the supply of data centre co-location services.
Under the new agreements, DC Two (ASX:DC2) will provide customers with floor space, power and cooling at one of its eco-friendly, transportable and modular data centre sites to its clients.
Customers will then purchase and manage their own servers and equipment, and the agreements will generate recurring revenue for DC2 beginning in Q4 of this year.
The latest contracts follow DC Two’s initial fixed-term agreement announced in June for a Mid-West data centre site in Western Australia – a hosting solution for bitcoin and cryptocurrency miners with a focus on using low-cost, renewable energy.
The company’s modular data centres can be deployed behind the metre at power generation sites, and the Mid-West data centre is located on an operational wind farm. That deal was worth an estimated $926,376 over five years.
In a release to market today, DC Two said the data centres were proving popular at market.
“The company is experiencing increased demand for its regionally located modular data centres, as they provide customers with access to globally competitive hosting and power prices, which decrease the operational costs for clients and provide a turnkey solution for clients seeking to lower their environmental impact,” the company said.
With ESG a focus for companies across the board, the ability to use wind, solar and other renewable power sources for data centres lends eco-credentials to businesses.
The individual fixed term contracts will begin on November 1 of this year, continuing through to October 31, 2024.
Customer equipment will be brought online in a staged approach during the final quarter of the year, and the data centres will generate a combined 590kw of continuous power draw per hour once all the equipment is installed.
DC2 said all other terms and charges under the agreements were typical for arrangements of this nature.
DC2 is also in the process of upgrading its data centre facility in Bibra Lake, south of Perth, into a Tier III facility with a ISO 27001 accredited information security management system (ISMS) cloud platform in a bid to secure enterprise customers.
ISO 27001 accreditation is internationally regarded as a best practice framework for the operation of an ISMS. Having both a Tier III data centre and ISO 27001 ISMS cloud platform would be a Western Australian first once granted.
DC2 made its ASX debut in November 2020 on the back of a $5.5 million capital raise.
This article was developed in collaboration with DC Two, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.