Showing posts with label Digital Realty. Show all posts
Showing posts with label Digital Realty. Show all posts

Thursday, November 7, 2019

Digital Realty's PlatformDIGITAL targets ecosystem connectivity

At its MarketplaceLIVE event in New York City, Digital Realty introduced its PlatformDIGITAL, a global data center platform for helping its data center colocation customers to scale their digital business. 

PlatformDIGITAL aims to deliver seamless and dynamic ecosystem connectivity within a Digital Realty data center and throughout its growing portfolio of data centers worldwide.

“With the announcement of PlatformDIGITAL™, we uniquely enable customers to deploy their IT infrastructure at the centers of data exchange around the world, bringing users, things, applications, clouds and networks to the data. Our customers get the advantage of access to fit-for-purpose infrastructure that can power their digital transformations at the scale and speed they require today and into the future,” said Digital Realty Chief Executive Officer A. William Stein. 

The idea is to provide a trusted foundation that enables Digital Realty's colocation customers to tailor infrastructure deployments and controls matched to business needs irrespective of data center size, scale, location, configuration or ecosystem interconnections. Globally distributed workflows become possible, thus eliminating data gravity barriers.

Digital Realty also outlined its vision for a Pervasive Datacenter Architecture (PDx) that provides a step-by-step strategy to create the new IT architecture required for digital transformation.

Digital Realty said PDx is a prescriptive set of blueprint for its customers based on hundreds of product deployment combinations already present in its data centers. Digital Realty is already providing customers with access to new centers of data exchange in more than 210 data centers deployed on PlatformDIGITAL across 36 metros and 15 countries.



Building on this foundation, Digital Realty is launching four new enterprise IT solutions that can be rapidly deployed on PlatformDIGITAL:

  • Network Hub for Rewiring the Network: consolidates and localizes traffic into ingress/egress points to optimize network performance and cost
  • Control Hub for Implementing Hybrid IT Controls: hosts adjacent Security & IT controls to improve security posture and IT operations, tailored infrastructure deployments matching hyper-converged infrastructure configurations and density requirements for control points
  • Data Hub for Optimizing Data Exchange: localizes data aggregation, staging, analytics, streaming and data management to optimize data exchange and maintain data compliance
  • SX Fabric for Interconnecting Global Workflows: adds SDN overlay to service chain multi-cloud and B2B application ecosystems.  Connects hubs across metros and regions to enable secure, highly-efficient and distributed workflows.

In addition, Digital Realty is working with Cisco, IBM Cloud and Bridgepointe Technologies on enterprise solutions offered on PlatformDIGITAL. For example, the Cisco Secure Agile Exchange can be deployed as a network hub solution within Digital Realty’s global footprint of data centers.

http://www.digitalrealty.com/platformdigital

Digital Realty + Interxion merger brings scale and interconnectivity

Digital Realty and Interxion agreed to a merger that would create a global provider of data center, colocation and interconnection solutions.  Under the deal, Interxion shareholders will receive a fixed exchange ratio of 0.7067 Digital Realty shares per Interxion share.  The transaction values Interxion at approximately $93.48 per ordinary share or approximately $8.4 billion of total enterprise value, including assumed net debt.

Interxion's European business currently consists of 53 carrier- and cloud-neutral facilities in 11 European countries and 13 metro areas including Frankfurt, Amsterdam, Paris and Interxion's Internet Gateway in Marseille. Its network reaches 700 connectivity providers, 21 European Internet exchanges, and most leading cloud and digital media platforms. Interxion has a robust pipeline of data center development projects currently under construction, with over $400 million invested to date and a total expected investment of approximately $1 billion. These projects represent roughly a 40% expansion of Interxion's standalone critical load capacity, are significantly pre-leased and are expected to be delivered over the next 24 months, representing a solid pipeline of potential future growth for the combined company.

The companies said their combination will build upon Digital Realty's successful track record of hyperscale development and will represent an extension of the connected campus strategy that empowers enterprise customers to leverage the right products – from colocation to hyperscale footprints – to create value by efficiently deploying

In Europe, Digital Realty has an established presence in Amsterdam, Frankfurt, London and Dublin. On a global basis, Digital Realty has 220 data centers in 35 top metropolitan areas,



The companies also noted that the merger will provide access to additional capital for investment.

"This strategic and complementary transaction builds upon Digital Realty's established foundation of serving market demand for colocation, scale and hyperscale requirements in the Americas, EMEA and Asia Pacific and leverages Interxion's European colocation and interconnection expertise, enhancing the combined company's capabilities to enable customers to solve for the full spectrum of data center requirements across a global platform," said Digital Realty Chief Executive Officer A. William Stein.  "The transaction is expected to be accretive to the long-term growth trajectory of the combined organization, and to establish a global platform that we believe will significantly enhance our ability to create long-term value for customers, shareholders and employees of both companies."

"We are excited to deliver this compelling opportunity for all our stakeholders while bolstering our ability to offer a truly global platform to serve our customers' needs," said Interxion Chief Executive Officer David Ruberg.  "As part of Digital Realty, stakeholders will have the opportunity to continue to reap the benefits of the value that we have created via the communities of interest approach in our carrier- and cloud-neutral European data center portfolio.  They will also be able to participate in the value created by extending our approach across Digital Realty's global footprint, complementary customer base and significant presence in the Americas, EMEA and Asia Pacific.  We also believe our stakeholders will benefit from Digital Realty's investment grade balance sheet and lower cost of capital.  We look forward to working closely with Bill Stein and the entire Digital Realty team to consummate the transaction and combine the best of our companies to build the world's preeminent data center provider."

Additionally:

  • Digital Realty CEO A. William Stein will serve as CEO of the combined company 
  • Digital Realty CFO Andrew P. Power will serve as CFO of the combined company 
  • Interxion CEO David Ruberg will serve as the Chief Executive of the combined company’s Europe, Middle East & Africa (EMEA) business, which will be branded “Interxion, a Digital Realty company” at the close of the transaction

Sunday, November 3, 2019

Adani and Digital Realty partner on data centers in India

Adani Group is partnering with Digital Realty to develop and operate data center parks in India.

The collaboration would leverage Digital Realty’s extensive experience and global data center customer base along with Adani’s expertise in full-stack energy management, renewable power, and real estate development and management.

Speaking on the development, the Adani Group Chairman, Mr. Gautam Adani, said, “Data center infrastructure is critical to enable a Digital India and this partnership leverages several of the capabilities developed by the Adani Group in power generation, transmission, retail electricity distribution, access to waterfronts through the ports business, and real estate management. Also, as one of the top five renewable energy companies in the world, our ability to power our data centers with solar and wind energy is unique and addresses some of the challenges of building and operating data centers. We are excited about partnering with Digital Realty, the world’s market leader in the data center industry, to help with the transformation of this sector in India. The skill sets of the two companies are complementary, and together we can provide unmatched products and solutions to customers in India.”

“We are excited by the opportunity to enter the Indian market with the Adani Group,” said Digital Realty Chief Executive Officer, A. William Stein. “Their knowledge of the local market and complementary capabilities are a great fit for us and will significantly accelerate our ability to serve customers in this rapidly growing region. The Adani Group’s understanding of real estate development, energy, cooling technologies and access to connectivity across the nation will be critical to providing a world-class experience to a customer base that sees India as one of the largest and fastest growing markets in the world. We are strongly committed to working with Adani to build out a world-class data center network in India to support the growth of our global and Indian customers.”

Wednesday, October 30, 2019

Digital Realty + Interxion merger brings scale and interconnectivity

Digital Realty and Interxion agreed to a merger that would create a global provider of data center, colocation and interconnection solutions.  Under the deal, Interxion shareholders will receive a fixed exchange ratio of 0.7067 Digital Realty shares per Interxion share.  The transaction values Interxion at approximately $93.48 per ordinary share or approximately $8.4 billion of total enterprise value, including assumed net debt.

Interxion's European business currently consists of 53 carrier- and cloud-neutral facilities in 11 European countries and 13 metro areas including Frankfurt, Amsterdam, Paris and Interxion's Internet Gateway in Marseille. Its network reaches 700 connectivity providers, 21 European Internet exchanges, and most leading cloud and digital media platforms. Interxion has a robust pipeline of data center development projects currently under construction, with over $400 million invested to date and a total expected investment of approximately $1 billion. These projects represent roughly a 40% expansion of Interxion's standalone critical load capacity, are significantly pre-leased and are expected to be delivered over the next 24 months, representing a solid pipeline of potential future growth for the combined company.

The companies said their combination will build upon Digital Realty's successful track record of hyperscale development and will represent an extension of the connected campus strategy that empowers enterprise customers to leverage the right products – from colocation to hyperscale footprints – to create value by efficiently deploying

In Europe, Digital Realty has an established presence in Amsterdam, Frankfurt, London and Dublin. On a global basis, Digital Realty has 220 data centers in 35 top metropolitan areas,



The companies also noted that the merger will provide access to additional capital for investment.

"This strategic and complementary transaction builds upon Digital Realty's established foundation of serving market demand for colocation, scale and hyperscale requirements in the Americas, EMEA and Asia Pacific and leverages Interxion's European colocation and interconnection expertise, enhancing the combined company's capabilities to enable customers to solve for the full spectrum of data center requirements across a global platform," said Digital Realty Chief Executive Officer A. William Stein.  "The transaction is expected to be accretive to the long-term growth trajectory of the combined organization, and to establish a global platform that we believe will significantly enhance our ability to create long-term value for customers, shareholders and employees of both companies."

"We are excited to deliver this compelling opportunity for all our stakeholders while bolstering our ability to offer a truly global platform to serve our customers' needs," said Interxion Chief Executive Officer David Ruberg.  "As part of Digital Realty, stakeholders will have the opportunity to continue to reap the benefits of the value that we have created via the communities of interest approach in our carrier- and cloud-neutral European data center portfolio.  They will also be able to participate in the value created by extending our approach across Digital Realty's global footprint, complementary customer base and significant presence in the Americas, EMEA and Asia Pacific.  We also believe our stakeholders will benefit from Digital Realty's investment grade balance sheet and lower cost of capital.  We look forward to working closely with Bill Stein and the entire Digital Realty team to consummate the transaction and combine the best of our companies to build the world's preeminent data center provider."

Additionally:

  • Digital Realty CEO A. William Stein will serve as CEO of the combined company 
  • Digital Realty CFO Andrew P. Power will serve as CFO of the combined company 
  • Interxion CEO David Ruberg will serve as the Chief Executive of the combined company’s Europe, Middle East & Africa (EMEA) business, which will be branded “Interxion, a Digital Realty company” at the close of the transaction


Interxion sees continued favourable demand for European data center services

Interxion, a leading European provider of carrier and cloud-neutral colocation data centre services, reported Q2 revenue of €158.5 million, up 14% from the same period last year. Net income increased by €8.0 million to €8.6 million (2Q 2018: €0.6 million). Diluted earnings per share increased by €0.11 to €0.12 (2Q 2018: €0.01). Capital expenditure, including intangible assets(2), were €123.5 million (2Q 2018: €120.5 million).
Some operating highlights:
  • Equipped space increased by 6,500 square metres (“sqm”) during the quarter to 154,800 sqm metres.
  • Revenue generating space increased by 2,600 sqm during the quarter to 121,600 sqm.
  • Utilisation rate at the end of the quarter was 79%.

During the second quarter, Interxion completed the following capacity additions:

  • 2,000 sqm in Vienna;
  • 1,300 sqm in Madrid;
  • 1,100 sqm in Marseille;
  • 800 sqm in Stockholm;
  • 600 sqm in London;
  • 400 sqm in Paris; and
  • 300 sqm in Dusseldorf.
“As reflected in the solid second quarter results, Interxion continues to experience favourable demand, driven primarily by the cloud and content platform providers,” said David Ruberg, Interxion’s Chief Executive Officer. “In response to customer demand and orders, we are announcing today incremental investments in Frankfurt, Paris, Marseille and Stockholm. Our recent equity issuance and credit rating upgrade support our ongoing expansion activity, with a focus on sustaining our attractive returns."



https://investors.interxion.com/investor-relations

Sunday, February 10, 2019

Digital Realty plans new data center in Singapore

Digital Realty acquired a long-term ground lease on a parcel totaling 12,800 square meters and adjacent to its second Singapore facility – Digital Loyang I (SIN11), located at Loyang Drive on the east side of Singapore. 

The land will be used for a new, multi-story Digital Loyang II (SIN12) Singapore data center. The facility is expected to be fully operational by the third quarter of 2020, marking a significant expansion and further development of the Digital Realty Loyang connected campus.  The new data center will be located less than 25 kilometers from Singapore's central business district and will provide up to 50 megawatts (MW) of critical power capacity to regional and global customers.

Both the existing SIN11 and planned SIN12 facilities are strategically located close to the Changi North Cable landing station, a key sub-sea internet landing station for the region. 

"Digital transformation is set to contribute US$10 billion to Singapore's gross domestic product (GDP) by 2021," said Mark Smith, Managing Director APAC for Digital Realty.  "With leading global technology companies increasingly looking to expand their digital footprint in Singapore, there is a significant opportunity for leading infrastructure providers like Digital Realty to provide the trusted foundation for the nation's technology landscape.  Our customers are constantly investing in digital services to transform their businesses, and we remain committed to supporting them through these transformations."

Tuesday, January 22, 2019

Digital Realty brings Internet Exchange to Chicago and Ashburn, Virginia

Digital Realty is expanding its Internet Exchange service to Chicago and Ashburn, Virginia.

The Digital Realty Internet Exchange Platform, or “DRIX,” is currently available at the company's data centers in New York, Atlanta, Dallas, and Phoenix, connecting a variety of facilities within each of these metros to the peering platform. The service is a neutral, privately-owned Internet exchange that provides performance peering platform across a broad cross-section of carriers, cloud service providers and digital media companies.

“The explosion of IP traffic has created the need for a highly scalable, reliable and cost-efficient internet exchange solution,” said Digital Realty Chief Technology Officer Chris Sharp.  “Our track record as a stable, trusted business partner has enabled us to reduce the complexities of interconnection for our customers, deliver innovative ways to simplify provisioning and improve their network performance for a better end-user experience.”

Wednesday, December 19, 2018

Digital Realty earns ENERGY STAR Certifications for its 24 data centers

Digital Realty earned the U.S. Environmental Protection Agency’s ENERGY STAR certification for superior energy performance in 24 data centers in 2018.  The certifications indicate Digital Realty data centers rank in the top 25 percent of similar facilities nationwide for energy efficiency. 

Digital Realty said its ENERGY STAR-certified data centers are now saving a total of 720,000 megawatt hours relative to industry-average data centers, enough to power 80,000 average U.S. homes for a year and eliminating 535,000 metric tons of C02 emissions. The 24 facilities certified in 2018 total 385,000 kilowatts of data center capacity, representing more than one-third of Digital Realty’s U.S. data center portfolio.

Separately, Digital Realty also announced it has enrolled in a new sustainable energy offering from Salt River Project under which Digital Realty will source a portion of the energy consumed by its Arizona data center portfolio from a new 100-megawatt solar plant to be built in Coolidge, AZ.

Digital Realty Senior Director of Sustainability Aaron Binkley concluded, “Receiving ENERGY STAR certification for a significant portion of our data center portfolio speaks to the expertise of our data center design and operations teams and their sustained focus on achieving high levels of energy performance for our customers.  These certifications are another element of our commitment to deliver to our clients best-in-class global data center solutions that minimize environmental impacts."

Thursday, October 25, 2018

Digital Realty reports continued growth data center leasing

Digital Realty reported revenues of $769 million for Q3 2018, a 2% increase from the previous quarter and a 26% increase from the same quarter last year. Net income was $90 million, and net income available to common stockholders of $67 million, or $0.33 per diluted share, compared to $0.32 per diluted share in the previous quarter and ($0.02) per diluted share in the same quarter last year.

“We continue to execute our core business strategy focused on high-value customer deployments, which favor direct interconnection to networks and cloud on-ramps. We are expanding our customer ecosystem and benefiting from strong organic growth,” said Paul Szurek, CoreSite’s Chief Executive Officer. “Our core retail colocation business continued its consistent leasing performance at good pricing, acquiring valuable new logos and expanding with key strategic customers and we made good progress on construction and development activities which will strengthen our scale leasing to edge deployments over the next eighteen months.”

"In the third quarter, we signed total bookings expected to generate $69 million of annualized GAAP rental revenue, including an $8 million contribution from interconnection," said Chief Executive Officer A. William Stein.  "This represents the second-highest bookings in the company's history, close on the heels of our record in the prior quarter.  We also announced our entry into the rapidly growing Brazilian market, and we took proactive steps to secure our supply chain and further strengthen our balance sheet.  We look forward to building on this momentum in the months ahead, setting the stage for sustainable growth into 2019 and beyond."

Key metrics:

  • Digital Realty has 198 data centers worldwide
  • Digital Realty closed on the sale of 360 Spear Street, a 155,000 square foot data center in San Francisco, for $92 million.  The facility was 39% leased and was expected to generate cash net operating income of approximately $2 million in 2018, representing a nominal exit cap rate of 1.9%.  The sale generated net proceeds of $91 million, and Digital Realty recognized a gain on the sale of approximately $27 million in the third quarter of 2018.
  • Digital Realty acquired three separate sites in Manassas, Virginia, Sterling, Virginia and Sydney, Australia, totaling 51.5 acres for a combined investment of $40 million, or approximately $773,000 per acre.  The three sites are expected to support the development of approximately 138 megawatts of critical power.  Digital Realty also entered into an agreement to acquire 424 acres of undeveloped land in Loudoun County, Virginia for a purchase price of $236.5 million, or approximately $558,000 per acre.  
  • Digital Realty entered into a definitive agreement to acquire Ascenty, the leading data center provider in Brazil, from private equity firm Great Hill Partners in a transaction valued at approximately $1.8 billion. 
  • Digital Realty had approximately $9.2 billion of total debt outstanding as of September 30, 2018, comprised of $9.1 billion of unsecured debt and approximately $0.1 billion of secured debt. 



Monday, September 24, 2018

Digital Realty announces major expansion, acquisition in Brazil

Digital Realty will acquire 424 acres of undeveloped land in Loudoun County, Virginia for a total purchase price of $236.5 million, or approximately $558,000 per acre.  The site is adjacent to Washington Dulles International Airport and located near bulk transmission lines as well as a major fiber path.
 The site is also located less than four miles from Digital Realty's existing data center campuses in Ashburn, Virginia. 

"We are pleased to expand our footprint and strengthen our position in Northern Virginia, the largest and most important data center market in the world," said Digital Realty Chief Executive Officer A. William Stein.  "Customers are looking for long-term commitment, along with the flexibility to support their deployments and connection nodes, as well as the ability to land and expand within the same location – all of which align perfectly with our Connected Campus™ strategy."

Separately, Digital Realty agreed to acquire Ascenty, a leading data center provider in Brazil, from private equity firm Great Hill Partners in a transaction valued at approximately $1.8 billion. 

Ascenty has eight state-of-the-art data centers strategically located in the key Brazilian metro areas of São Paulo, Campinas, Rio de Janeiro and Fortaleza. Most of the Ascenty facilities have been designed and built to Tier III standards and meet internationally recognized facility and service standards. The Ascenty portfolio is comprised of 106.2 megawatts of total planned capacity, including 39.2 megawatts of capacity currently in-service, 34.0 megawatts of capacity under construction and 33.0 megawatts of potential additional capacity. In addition, Ascenty has options or leases on five separate sites representing up to an estimated incremental 66.5 megawatts of potential future growth capacity. Ascenty also operates a proprietary, 4,500-kilometer fiber network connecting Brazil's primary technology, finance, and population hubs of São Paulo, Campinas, Rio de Janeiro and Fortaleza.

Brookfield Infrastructure, an affiliate of Brookfield Asset Management, one of the largest owners and operators of infrastructure assets globally, has committed to fund half of the required initial equity investment, currently estimated to be approximately $613 million, excluding Brookfield's share of the transaction costs, in exchange for 49% of the total equity interests in a joint venture entity expected to ultimately own Ascenty.

In addition,  Digital Realty has commenced an underwritten registered public offering of 8,500,000 shares of its common stock.

Monday, July 23, 2018

Digital Realty establishes direct connect to IBM Cloud in 15 cities

Digital Realty announced dedicated, private access to the IBM Cloud in 15 major metropolitan areas around the world.  These

Direct access to IBM Cloud is now available through the Digital Realty Service Exchange and IBM Cloud Direct Link via more than 70 Digital Realty data centers in Amsterdam, Ashburn, Atlanta, Boston, Chicago, Dallas, Frankfurt, Hong Kong, London, Los Angeles, Melbourne, Miami, Phoenix, Portland, New York, Santa Clara, Seattle, Singapore, Sydney and Toronto.

"Businesses are turning to the cloud to extract new value from their data and deliver better customer experiences faster than ever before," said Kit Linton, Vice President of Network, IBM Cloud.  "The combination of Digital Realty's extensive global reach and highly resilient connectivity from IBM Cloud Direct Link can help businesses build the protected, hybrid cloud environment they need to innovate at scale."

"Providing enterprise connectivity to the extensive range of services available through IBM Cloud via Direct Link ensures customers not only have access to the compute and storage resources they need, but they are also able to leverage more advanced cloud applications like analytics, blockchain technology and the Internet of Things," said Digital Realty Chief Technology Officer Chris Sharp.  "We look forward to continuing to work closely with IBM to enable our mutual customers to access the cloud services they need to accelerate their own business growth, no matter where they may be located."

Thursday, June 14, 2018

Digital Realty opens 46 Megawatt Data Center in Toronto

Digital Realty had opened its third data center in Toronto at the site of the former Toronto Star printing plant.

The facility will provide up to 46 megawatts of critical power capacity. It spans over 66,000 square meters (711,000 square feet).

Some highlights
  • The new facility is engineered to deliver a Power Usage Effectiveness (PUE) of 1.25 annualized at full capacity and will be one of Canada's most efficient and reliable data centers.
  • With 23 computer rooms ranging from 800 to 1,200 square meters (approximately 8,600 to 13,000 square feet), it can accommodate power capacities from one to three megawatts per room.
  • Resiliencies range from n to 2n with a power density range of 1,000 to more than 4,000 watts per square meter (approximately 100 to 300 watts per square foot).
  • The facility is adjacent to a utility sub-station, providing direct access to low-cost power.
  • Proximity to downtown Toronto, major highways, and an international airport makes for easy accessibility.
"Toronto is home to a booming financial services industry and a burgeoning roster of large technology companies and emerging tech startups for whom digital transformation is driving enterprise initiatives," said Digital Realty Chief Executive Officer A. William Stein. "We are very excited to be converting the iconic Toronto Star building into a revolutionary new data center, ideal for cloud providers, financial services companies and enterprises of all sizes. The grand opening is another important milestone in achieving our strategic goal of building an unparalleled global network of top-tier data centers in major cities and interconnection hubs around the world."

Thursday, April 26, 2018

Digital Realty's Q1 revenue of $744 million, up 35% yoy

Digital Realty, a leading global provider of data center, colocation and interconnection solutions, reported revenues for the first quarter of 2018 of $744 million, a 2% increase from the previous quarter and a 35% increase from the same quarter last year. Net income amounted to $110 million, and net income available to common stockholders of $86 million, or $0.42 per diluted share, compared to $0.26 per diluted share in the previous quarter and $0.41 per diluted share in the same quarter last year.

"In the first quarter, we signed total bookings expected to generate $61 million of annualized GAAP rental revenue, including a $7 million contribution from interconnection," said Chief Executive Officer A. William Stein.  "As we look toward the remainder of 2018, we are confident in our ability to deliver sustainable growth for stakeholders, driven by broad-based demand across regions, verticals and product lines, along with growing local origination in key growth metros around the world."

Tuesday, March 27, 2018

Digital Realty maintains Five Nines data center reliability

Digital Realty has achieved “five nines” of uptime for its data center suites for the 11th consecutive year, exceeding 99.999 percent availability throughout 2017.

Digital Realty recently surpassed 1.7 billion operating minutes across its 205 datacenters, encompassing approximately 27 million square feet in 33 metropolitan areas globally. Over the past 11 years, the number of data center suites operated by Digital Realty has increased from 74 suites at the start of 2007 to over 750 by the end of 2017.

“Achieving ‘five nines’ of uptime for the 11th year demonstrates our commitment to resiliency and to being a true business partner to all of our customers, from enterprises to telecommunications customers and cloud service providers,” said A. William Stein, Digital Realty’s Chief Executive Officer. “We are especially proud of this milestone given our rapid growth and remain focused on ensuring that all of our facilities meet the same stringent standards for design, construction and operations.”

Tuesday, January 23, 2018

Digital Realty data centers provide direct tap to the Oracle Cloud

Digital Realty is adding dedicated and private access to Oracle Cloud through Oracle Cloud Infrastructure (OCI) FastConnect in 14 major metropolitan areas: Ashburn, Atlanta, Boston, Chicago, Dallas, London, Los Angeles, Miami, New York, Phoenix, Portland, San Francisco, Seattle and Silicon Valley.  Digital Realty has a total of 59 data centers in these 14 markets.

Access to OCI is being made available through Digital Realty's Service Exchange, which is an interconnection platform that facilitates direct, private and secure connections from clients in its data center to multiple cloud service providers. Digital Realty's Service Exchange already provides access to Amazon Web Services (AWS), Google Cloud Platform and Microsoft Azure – as well as telecommunications providers and other Digital Realty customers worldwide. The switching platform is powered by Megaport's elastic, SDN-based Ethernet fabric. An online portal enables Digital Realty customers to actively manage multiple virtual private connections ("Virtual Cross Connects") to cloud operators and service providers.

Oracle's cloud occupies more than 500,000 square feet across 16 Digital Realty locations.

"Customers require seamless connectivity from their data centers and networks to Oracle Cloud for their most demanding workloads and applications," said Don Johnson, Senior Vice President Product Development, Oracle Cloud Infrastructure.  "With Oracle's FastConnect service via Digital Realty, customers can provision the dedicated and private connections they need today and easily scale with their growing business demands."

"Our direct connections to Oracle Cloud Infrastructure build upon our commitment to ensure that our customers have interconnected access to the critical IT resources they need to drive business success," said Digital Realty Chief Technology Officer Chris Sharp.  "The rapid growth of Oracle Cloud is a testament to its strength in the marketplace, and we are extremely pleased to be working closely with Oracle to accelerate its momentum."

Wednesday, December 6, 2017

Digital Realty brings on more wind power

Digital Realty, which operates 182 data centers throughout North America, Europe, Asia and Australia, announced two new long-term agreements to source approximately 324,000 additional megawatt-hours of renewable wind and solar power annually for the company’s Chicago and Ashburn data centers.

In Chicago, Digital Realty has signed a contract with Leeward Renewable Energy for an anticipated 276,000 megawatt-hours of renewable wind power annually.

In Virginia, Digital Realty has signed SunEnergy to supply 48,000 megawatt-hours of renewable solar power annually for its Ashburn data centers. Both projects are expected to come online in next year.

With these resources, Digital Realty will have contracted for approximately 721,000 megawatt-hours of renewable generation annually through long-term contracts, avoiding approximately 515,000 metric tons of carbon dioxide per year. The company says it currently procures approximately 400,000 megawatt-hours of wind power annually, which offsets 100% of its U.S. colocation and interconnection energy usage, reducing the company's carbon footprint by approximately 275,000 metric tons per year. 



Monday, June 19, 2017

Digital Realty pays a premium for DuPont Fabros

Late last week came news of the latest consolidation in the rapidly-evolving market of colocation data centres. Digital Realty agreed to acquire DuPont Fabros Technology (DFT) in an all-stock transaction valued at approximately $7.6 billion. DFT owns and operates a fleet of 12 purpose-built data centres concentrated in Northern Virginia, Chicago and Silicon Valley - three markets red hot for data centre activity. The DFT properties offer a combined total 3.5 million gross sq feet and 302 megawatts of available critical load. Digital Realty is the premier name in data centres, as it operates 156 key colocation facilities in 11 countries on four continents. The merger especially boosts Digital Realty's presence in hyperscale data centres in top U.S. markets.

DuPont Fabros hits a home run with hyperscale data centres

The quick summary for DFT is that all of the space in its 12 massive data centres is fully leased. The company is enjoying double digit growth in both revenue and earnings. A significant expansion programme is underway, including its first venture into Canada. The stock price has been soaring and now there is a takeover offer valued at $7.6 billion from the industry's leading player.

DFT was founded in 1997 and is based in Washington DC. Its co-founder and ongoing chairman of the board is Lammot J. du Pont and its second co-founder was Hossein Fateh. Together they pursued the concept of managing data centres as real estate, helping their enterprise customers to consolidate the rent, taxes and maintenance costs all under one lease. In 2007, the company went public as a real estate investment trust (REIT).

For the quarter ended March 31, 2017, earnings were 45c per share compared to 36c per share in the first quarter of 2016. Earnings increased 9c per share, or 25%, year over year, which was primarily due to new leases that commenced in 2016 and the first quarter of 2017 and lower preferred stock dividends, partially offset by the impact of the issuance of common stock that occurred late in the first quarter of 2016. For the year ended December 31, 2016, earnings were $1.67 per share compared to loss of 40c per share in 2015. The company proudly notes the credit worthiness of its leases, saying that investment grade or equivalent customers will represent more than 50% of total revenue.

DFT flagship location is its Ashburn, Virginia campus, which comprises of 2.138 million gross sq feet, built on 159.7 acres with a total critical load of 207.9 megawatts. Ashburn, commonly referred to as Data Center Alley, benefits from dense fibre connections to all major U.S. carriers, the presence of many federal agency customers and low-energy costs from Dominion Virginia Power. On this point, it should also be noted the Commonwealth of Virginia, along with Dominion Virginia Power (the leading electric utility in the state), have been laggards in regard to renewable energy. Dominion's website still lists coal generation as constituting 26.5% of its energy mix, while renewables (including hydro) account for only 5.6%. Another data centre in nearby Reston, Virginia adds another 256,000 sq feet of colocation capacity. For the central U.S., DFT owns and operates a campus in Elk Grove Village, Illinois (just outside Chicago) with a total 820,000 sq feet of space in two building. For the West Coast, DFT owns and operates a data centre in Santa Clara, California offering 360,000-sq feet of space and 36.6 megawatts of critical load capacity.

In 2016, DFT acquired the former Toronto Star printing plant in Vaughan, Ontario for $55 million CAD. Construction is underway to convert the former printing plant into a state-of-the-art data centre with 23 computer rooms spread across 21,016 M2 with a critical data power capacity of up to 46 MW.

As mentioned above, DFT also has a very busy expansion program under way.  It has six data centre development projects currently under construction in Ashburn, Chicago, Santa Clara and Toronto for a total expected investment of approximately $750 million. These new facilities represent roughly a 26% expansion of its standalone critical load capacity. All are expected to be online within the next 12 months, and remarkably the company has already pre-leased 48% of the new capacity. DuPont Fabros also boasts strategic land holdings in Ashburn and Oregon, which will support the future delivery of up to 163 megawatts of incremental capacity, along with 56 acres of land recently acquired in Phoenix.

In May, DFT confirmed its largest wholesale lease to date. A customer pre-leased 28.8 megawatts of electrical loads across two markets: its new CH2 data centre in Elk Grove Village and the first two phases of a new building being constructed on its Ashburn campus. In short, DFT is firing on all cylinders. The company has been the enviable position of signing customers even faster than it can build its hyperscale data centres. No wonder Digital Realty was willing to pay $7.6 billion to acquire them.

DLR gets interconnected metro data centre campuses

With 156 data centres to its name, Digital Realty (DLR) was already a competitive provider in all the DFT markets mentioned above. The merger with DFT gives its added capacity in Northern Virginia, Chicago and Silicon Valley. More importantly, it expands Digital Realty’s presence in the hyperscale segment, where top-tier cloud and content companies are eager to sign long term leases in major markets rather than going through the trouble of acquiring land, gaining permits and then building data centres on their own. DLR estimates that capex investments for hyperscale cloud infrastructure amounted to $26.3 billion in 2016, up from $21.1 billion in 2015.

In Northern Virginia's Data Center Alley, DLR already operated 17 data centres with a combined 2.2 million sq feet of space. DFT adds nine prime buildings. So now, the combined DLR will have a total of 26 data centres and 4.4 million sq feet of space within a 20-mile radius. With today's data centre interconnect (DCI) DWDM technology, the company will have the opportunity to tie these metro facilities together like never before. In Chicago, the merger will give DLR a combined 7 data centres and 2.5 million sq feet of space in a 25-mile radius. And in Silicon Valley, DLR will have 16 data centres and 2.1 million sq feet of space in a 7-mile radius.

Digital Realty's CEO A. William Stein commented, "This strategic and complementary transaction significantly enhances Digital Realty's ability to support the growth of hyper-scale users in the top U.S. data centre metro areas, while providing meaningful customer and geographic diversification for DuPont Fabros".

As for combined customers, an investor presentation following the merger announcement listed IBM, Facebook, CenturyLink, Rackspace, Equinix, LinkedIn, AT&T, JP Morgan Chase, Verizon, Dropbox and other marquee names.

Continuing the consolidation

The DFT-DLR deal is certainly notable for its rich valuation. It adds momentum to a sector that we already knew was red hot. In May, Equinix completed its acquisition of 29 data centres and their operations from Verizon Communications. This deal was valued at $3.6 billion in cash. Combined, the acquired properties cover approximately three million gross sq feet of data centre space. Also in May, private equity funds including Medina Capital Advisors and Longview Asset Management acquired CenturyLink's data centres and colocation for $1.86 billion. This deal consisted of CenturyLink's portfolio of 57 data centres which includes approximately 195 megawatts of power across 2.6 million sq feet of raised floor capacity. From the numbers we can see that there is no clear correlation between acquisition price and sq footage. As with all real estate, location is the prime factor, which brings the top tier customers in search of hyperscale space.

Wednesday, March 15, 2017

Digital Realty Adds Data Center Space to Atlanta Campus

Digital Realty Trust plans to add approximately 50,000 square feet of interconnected retail colocation data center capacity to its existing 160,000 square feet in the southeast technical hub of Atlanta. The new facility will be connected via fiber to Digital’s existing facility at 56 Marietta Street, the region’s largest stand-alone data center.

Digital Realty said the Atlanta metro area is and extremely appealing interconnection location for enterprises, telecommunications providers and cloud providers given its minimal risk of natural disasters, low cost, reliable power, strong fiber infrastructure and peering capabilities.

http://www.digitalrealty.com

Wednesday, October 19, 2016

Digital Realty Plans to Build Really Big in Chicago

Digital Realty plans to expand its colocation facility on Cermak Road in Chicago into one of the largest data centers in the world.

Specifically, CBRE Group has commenced pre-leasing for a new data center at 330 East Cermak Road in Chicago, to be developed by Digital Realty on a site adjacent to Lakeside Technology Center at 350 Cermak, which is one of the largest existing data centers in the U.S. at 1.1 million square feed and also one of the largest interconnection hubs in the world with over 110 service providers in the building.

Upon completion, which is expected to be within two years of breaking ground, the 330 East Cermak data center will provide up to 698,000 square feet and 54 megawatts of utility load. The new data center building will be 12 stories high and will provide zero-latency connections to the meet-me-rooms at 350 East Cermak.
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“Data center demand is surging, driven by the rapid growth of cloud adoption and corporate IT outsourcing,” said Todd Bateman, North American Agency Practice Leader for CBRE’s Data Center Solutions Group.  “Demand is outpacing supply, both at the national level and within the Chicago area in particular.  The state-of-the-art proposed design at 330 East Cermak, along with the proximity to Lakeside Technology Center at 350 East Cermak, would address market demand and provide prospective customers with the expansion capacity and network density to meet their colocation and interconnection needs.”

“We are delighted to be working with CBRE to build upon the success of our connected campus strategy in Chicago,” said A. William Stein, Digital Realty’s Chief Executive Officer.  “With the expansion of our Cermak flagship, Digital Realty will be even better positioned to future-proof our customers’ growth, while simultaneously satisfying their most performance-sensitive requirements.”

https://www.digitalrealty.com/news-and-events/

Thursday, September 22, 2016

Digital Realty Launches Cloud Service Exchange

Digital Realty is launching Service Exchange, an interconnection platform that facilitates direct, private and secure connections from clients in its data center to multiple cloud service providers – including Amazon Web Services (AWS), Google Cloud Platform and Microsoft Azure – as well as telecommunications providers and other Digital Realty customers worldwide.


The new Service Exchange, which is powered y Megaport, provides the elastic, SDN-based Ethernet fabric that enables interconnection between cloud providers and Digital Realty customers. An online portal will enable Digital Realty customers to actively manage multiple virtual private connections ("Virtual Cross Connects") to cloud operators and service providers.

Digital Realty said its new Service Exchange will be available in 24 data centers across 15 markets by mid-year 2017, beginning with Atlanta , Chicago , Dallas , Los Angeles , New York , San Francisco , Seattle and Ashburn, VA in the fourth quarter of 2016. Service Exchange will be available in London and Phoenix in the first quarter of 2017, and in Amsterdam , Dublin , Miami , Singapore and Portland in the second quarter of 2017.
About Digital Realty

"We're delighted to partner with Megaport to bring customers enhanced, easy-to-use interconnection services and SDN-enabled flexibility to their IT operations," said Chris Sharp , Digital Realty's Chief Technology Officer. "The Service Exchange creates a simple, flexible and scalable solution for our customers, including those looking to make, jump-start or accelerate their digital transformations."

"We look forward to working with Digital Realty on this pioneering initiative," said Denver Maddux , Megaport's Chief Executive Officer. "Service Exchange is fully integrated with Megaport's ubiquitous elastic fabric, which enables Digital Realty customers around the world to easily access the newest interconnection services and cloud network solutions. Megaport and Digital Realty have partnered to bring services, capabilities, SDN-enabled flexibility, and a great customer experience to IT operations in every business segment. Digital Realty has a longstanding tradition of enabling rapid scalability through its global infrastructure platform, and these benefits are now being complemented by Megaport's similarly scalable interconnection platform. The combination of these capabilities creates an innovative offering for the industry."

https://www.digitalrealty.com



What does the future of Internet Exchange points look like? Software will bring new capabilities.

Digital Realty to Acquire Telx for Data Centers and Internet Exchanges

Digital Realty Trust agreed to acquire Telx, a national provider of data center colocation, interconnection and cloud enablement solutions, for $1.886 billion from private equity firms ABRY Partners and Berkshire Partners.

The combination is expected to double Digital Realty's footprint in the rapidly-growing colocation business, as well as provide Digital Realty customers access to a leading interconnection platform.

As of March 31, 2015, Telx managed 1.3 million square feet of data center space operating out of 20 facilities across the country, of which two are Telx-owned, 11 are leased from Digital Realty, one is partially sub-leased from Digital Realty and an unrelated third party, and six are leased from third parties. Telx's flagship facilities include its NYC1 data center at 60 Hudson Street in Manhattan, which serves as a nerve center for international communications and offers access to physical connection points to the world’s telecommunications networks and Internet backbones. Telx occupies multiple floors at 60 Hudson with interconnectivity to more than 400 carriers, financial exchanges and application, media, content, and software-as-a-service providers with just a single connection. Telx operates other NYC data centers at 111 8th Ave. and 32 Avenue of the Americas (6th Ave).

As of March 31, 2015, Digital Realty's portfolio consisted of 130 properties, including 14 properties held as investments in unconsolidated joint ventures, comprised of approximately 22.1 million square feet, excluding approximately 1.2 million square feet of space under active development and 1.3 million square feet of space held for future development, located throughout North America, Europe, Asia and Australia.

Sunday, May 22, 2016

Equinix to Sell 8 European Data Centers to Digital Realty

Last week, Equinix announced plans to sell eight of its European data centers to Digital Realty Trust for the amount of $874.4 million. These facilities include: TelecityGroup's Bonnington House, Sovereign House, Meridian Gate and Oliver's Yard data centers and Equinix's West Drayton data center in London; TelecityGroup's Science Park and Amstel Business Park I in Amsterdam; and TelecityGroup's Lyonerstrasse data center in Frankfurt.

The sale of these assets was a pre-condition set by the European Commission in November 2015 for Equinix's acquisition of TelecityGroup plc.

Additionally, Equinix has separately negotiated with Digital Realty a binding option for Equinix to acquire Digital Realty's operating business including its real estate and facility in St. Denis, Paris where Equinix has an established presence with its PA2 and PA3 International Business Exchange (IBX) data centers.

http://www.equinix.com
  • On January 15, 2016, Equinix completed the acquisition of TelecityGroup plc in a transaction valued at approximately $3.8 billion (£2.6 billion). The addition of TelecityGroup's 34+ data centers, net of the divestment, more than doubled Equinix's capacity in Europe, fortifying its position as the largest retail colocation provider in the region and in the world.


Wednesday, May 18, 2016

Video: Digital Realty - The Connected Campus

Following its acquisition of Telx last year, Digital Realty is positioned to bring new switching and networking services to key locations.

Tony Rossabi talks about the "Connected Campus", where colocation and connectivity resources from Telx and integrated with Digital Realty's wholesale business.

See video:  https://youtu.be/ncm-7jsjGBQ







See also