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

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







Monday, May 9, 2016

Digital Realty to Expand in Ashburn

Digital Realty Trust announced plans to expand its existing Ashburn campus in the third quarter of this year.

The expansion follows Digital Realty’s recent acquisition of 126 acres within one mile of its existing Ashburn campus, which will support the development of upwards of two million additional square feet and 150 megawatts of critical IT load.  A variety of colocation and connectivity options will be made available by leveraging Telx’s proven operational model and Digital Realty’s existing fiber connectivity.

Digital Realty plans to offer traditional connectivity options found within its Meet-Me-Rooms and between buildings on campus, as well as dedicated Internet access solutions.  Customers will also be able to take advantage of a large ecosystem of network and cloud providers through MarketplacePORTAL, a state-of-the-art customer portal, where they can manage connectivity, service issues and access rights.

“We are excited to expand our service offerings in the largest data center market in the United States as we further our strategy of supporting applications of all sizes within our secure campus environments,” said Tony Rossabi, Managing Director of the company’s Telx line of business.  “Once the expansion is complete, customers will be able to take advantage of an even wider range of powerful solutions to support their mission-critical applications in close proximity to the compute engines that power their businesses.  We look forward to translating the success of our Ashburn colocation service offering to other campuses by the end of the year.”

http://www.digitalrealty.com

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.

Thursday, December 3, 2015

Digital Realty Launches "Direct Link Colo" to IBM Cloud

Digital Realty Trust introduced Direct Link Colo, linking its data centers directly to IBM Cloud via SoftLayer's global cloud infrastructure platform.

Digital Realty said the new Direct Link Colo delivers incredible network performance, including latency as low as 1.5 milliseconds—one of the lowest latencies for a hybrid cloud solution in the industry. With Direct Link Colo, there are no third-party carriers involved, additional intermediary electronics or steps are minimized, and links are available at 1 GigE or 10 GigE speeds. By directly linking Digital Realty—a data center provider with a global footprint, unrivaled ability to scale with clients of every size, and an eight-year record of 99.999 percent ("five 9s") of uptime—to SoftLayer's modular global cloud infrastructure platform, Direct Link Colo delivers:

IBM Cloud data centers are colocated at Digital Realty's hub locations in the Asia Pacific region, Europe and the U.S., with direct dark fiber connections between them.

Direct Link Colo is currently available in eight markets: Santa Clara, CA; Dallas, TX; Ashburn, VA; London, England; Amsterdam, Holland; Tokyo, Japan; Singapore and Melbourne, Australia; with more locations to be added in the future.

http://www.softlayer.com/direct-link

Tuesday, July 14, 2015

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.

"This transformative transaction is consistent with our strategy of sourcing strategic and complementary assets to strengthen and diversify Digital Realty's data center portfolio and expand our product mix and presence in the attractive colocation and interconnection space," said A. William Stein, Digital Realty's Chief Executive Officer.  "Telx's well-established colocation and interconnection businesses provide access to two rapidly-growing segments with long-standing customer relationships in top-tier metropolitan areas such as New York and Silicon Valley.  The fact that more than half of Telx's 20 facilities are run out of Digital Realty properties further highlights the strategic fit as well as the potential incremental revenue opportunities we expect to be able to pursue as one company on a global basis.  This transaction advances our objective of ensuring that Digital Realty's suite of products and services is able to best serve our customers' current and future data center needs."

"We are excited to join Digital Realty and become part of a much larger global data center services platform," said Chris Downie, Chief Executive Officer of Telx.  "We look forward to working with the Digital Realty team to extend a broader, enhanced data center solution to our collective customers.  The combination of Telx's colocation and interconnection capabilities with Digital Realty's expansive wholesale platform provides greater flexibility and optionality for our customers and creates a global solutions provider covering wholesale customer applications and smaller performance-oriented deployments in select high-growth urban submarkets across the U.S.  As we open this new chapter, I am proud of our team who, with the support of our partners, ABRY and Berkshire, have significantly increased Telx's revenue and earnings since 2011 and have positioned the company for long-term growth."

In connection with the definitive agreement, Digital Realty received a commitment from a syndicate of lenders for a $1.850 billion unsecured term loan bridge facility, the proceeds of which will be available for use, if necessary, to fund a portion of the acquisition of Telx.  Borrowings, if any, under the bridge facility will bear interest at a rate based, at the borrower's option, on LIBOR or a Base Rate (as defined in the commitment papers), in each case plus an applicable margin based on Digital Realty 's credit rating, and the facility will mature 364 days after the closing date of the acquisition of Telx.

http://www.telx.com
https://blog.digitalrealty.com/2015/07/power-of-connection-bill-stein-telx-acquisition/


Tuesday, November 11, 2014

Digital Realty and Zayo Team on Cloud to Data Center Connections

Zayo and Digital Realty announced an alliance agreement to expand the Digital Realty direct connect cloud offering.

Under the pact, Digital Realty customers will have the ability to access Zayo’s Connect to the Cloud platform, which offers access to more than 24 leading cloud providers, including Amazon Web Services (AWS), Microsoft Azure, and IBM SoftLayer.


Digital Realty clients will be able to deploy hybrid cloud solutions through Zayo’s Cloud connectivity platform. They will also be able to access pricing, place orders, and view existing and pending services through Tranzact, Zayo’s innovative shopping platform.

Digital Realty is one of the largest data center providers worldwide, with more than 130 locations across 11 countries. Zayo’s network, which spans more than 81,000 route miles and connects to more than 500 data centers, is connected to the majority of Digital Realty locations, enabling the two companies to offer complementary infrastructure to customers.

“This agreement builds on a long standing relationship with Zayo and our customers benefit from Zayo’s extensive network and ability to quickly deploy solutions for customers,” said Mike Bohlig, director of global alliances at Digital Realty. “Zayo’s footprint complements our global portfolio of data centers, enabling us to provide mutual customers with a diverse set of services, including connectivity to a wide range of cloud providers.”

http://www.zayo.com/network/cloud-connectivity
http://www.digitalrealty.com

Tuesday, April 29, 2014

Level 3 Partners with Digital Realty for Direct Connects to AWS, Microsoft Azure

Level 3 and Digital Realty, which owns 131 data centers in major cities worldwide, announced a partnership to deliver direct cloud services to co-location customers.  The initial rollout targets 14 markets in the U.S. and Europe and will include Amazon Web Services (AWS Direct Connect) and Microsoft Azure (ExpressRoute).

Digital Realty said a hybrid cloud environment offers its customers the ability to centralize IT management and also gain the flexibility to respond to changing business needs as a result of data and storage growth. For example, leveraging Level 3's virtual private network services, Digital Realty customers can dynamically scale their bandwidth and only pay for what they consume as demand for computing capacity spikes, say during the holiday shopping season. In a hybrid environment, transferring large data sets is expedited with greater bandwidth capacity, which also improves the performance of real-time voice and data feeds.

"This relationship with Level 3 enables us to facilitate connections for our clients to AWS or Azure globally with Level 3 Cloud Connect Solutions in a seamless and highly secure manner," said Digital Realty Interim CEO, Bill Stein. "As our clients' capacity and connectivity needs grow, it's our goal to facilitate their easy access to a broad range of solution providers. Our alliance with Level 3 and their growing cloud ecosystem play a key role in the breadth of support we can extend to our clients."

http://www.level3.com/en/products-and-services/cloud-and-it/cloud-services/

Monday, October 21, 2013

Equinix Renews Leases for Five Data Centers with Digital Realty

Equinix will renew existing leases with Digital Realty for five data center properties located in Chicago, Dallas, Los Angeles, Miami and Washington, D.C.

The companies said all five of the leases were negotiated at market rates and include 15-year initial terms from the current lease expirations, as well as two approximately 10-year renewal options at pre-negotiated rental rates. Financial terms were not disclosed.

http://www.equinix.com

Thursday, October 3, 2013

Digital Realty and Prudential Announce $369 Million Data Center Joint Venture

Digital Realty Trust announced a $369 million joint venture with an investment fund managed by Prudential Real Estate Investors ("PREI"), the real estate investment management and advisory business of Prudential Financial.


Digital Realty seeded the joint venture with nine data centers totaling 1.06 million square feet and valued at approximately $366.4 million (excluding $2.8 million of closing costs), or $346 per square foot.  The properties are expected to generate cash net operating income of approximately $24.5 million in 2013, representing a 6.7% cap rate.  The properties are 100% leased, with an average remaining lease term of approximately nine years.

The PREI-managed fund will take an 80% interest in the joint venture and Digital Realty will retain a 20% interest.  The joint venture is structured to provide a current annual preferred return from cash flow to the PREI-managed interest, while Digital Realty will receive fees and a promote participation for managing the properties.

"The long lease terms and contractual rental rate increases on these Powered Base Building data centers provide a stable rental income stream that represents a good fit with our investment objectives," noted Cathy Marcus, managing director at PREI and senior portfolio manager of the firm's core U.S. real estate strategy.  "These institutional quality properties are fully leased to a diversified roster of credit tenants, and we look forward to realizing a stable return on this portfolio over the course of a long-term relationship with Digital Realty."

http://investor.digitalrealty.com/CorporateProfile.aspx?iid=4094311


Tuesday, September 3, 2013

Digital Realty Acquires Data Center in Osaka

Digital Realty Trust announced its entrance into the data center market in Japan with the acquisition of a 15,000 square meter site in Osaka at a purchase price of $10.5 million.

"Our customers continue to demand enterprise-quality data centres on a global scale," said Michael F. Foust, Chief Executive Officer of Digital Realty. "The acquisition of our first site in Japan enables us to expand our world-class data centre platform to meet the growing domestic and global demand for critical IT facilities in Osaka."

The new data center is located less than 20 kilometres from Osaka's central business district.  Its power architecture can deliver 4.0 megawatts of IT capacity.

"Entering the Osaka market represents an important milestone in our growth strategy for the region as we continue to build a truly global data centre platform," said Kris Kumar, Senior Vice President and Regional Head, Asia Pacific, for Digital Realty. "We are pleased to now be able to offer our customers data centre solutions in Osaka, as well as the other 32 markets in which Digital Realty has a presence today."

http://www.digitalrealty.com


Thursday, August 22, 2013

Digital Realty to Host Open Internet Exchanges

Digital Realty Trust, which owns 122 data center properties in cities around the world, plans to establish Digital Open Internet Exchanges to expedite the carrier-neutral exchange of traffic.  Specifically, the company will provide the necessary data center infrastructure to support member-governed Internet exchanges, a model that has proven successful across Europe.

Digital Realty plans to operate as an endorsed data center partner with the governing bodies and endorsed IXPs (internet exchange providers) of Internet exchanges in each of the major exchange locations in North America, Europe and the Asia Pacific region. The initial rollout for Digital Open Internet Exchange will take place in the New York metro area and Northern Virginia, followed by deployment in several other U.S. markets.

http://youtu.be/NTGUGjRuE0E

“Digital Open Internet Exchange is a game-changer for the entire IP and networking community, and for our customers,” said Michael Foust, Chief Executive Officer at Digital Realty. “By creating a truly open Internet exchange environment, we are supporting the community’s desire for neutral exchanges that are more efficient and cost-effective than those available today.

“We understand that the costs and limitations associated with connecting to the existing Internet exchanges in the U.S., as well as peer-to-peer interconnecting, are simply too high.” said John Sarkis, Vice President of Connectivity and Carrier Operations at Digital Realty. “This initiative establishes the optimal exchange environment, making it possible for Internet service providers (ISPs), content delivery networks (CDNs) and content producers to interconnect with their peers as well as to other exchanges from our data centers at a significantly lower cost than they pay today, while also improving the quality of service they can provide to customers. By empowering the community to take control of the way it operates the exchanges, we will enable organizations within business ecosystems—like-minded and vertical industries—to connect with each other in and across all of Digital Realty’s 120-plus global locations.”

http://www.digitalrealty.com

Monday, August 19, 2013

Digital Realty Joins Epsilon's Global Network Exchange

Digital Realty, which owns 127 data center properties worldwide, has signed a network partnering agreement with Epsilon to offer a dynamic bandwidth solution in London to cloud and content providers for seamless backbone connectivity.  The new platform facilitates enhanced connectivity for cloud and content providers from Digital Realty's London-area data centers with seamless interconnectivity to over 65 data centres globally.

Epsilon is a privately owned communications service provider specializes in operating high-density metro connectivity platforms.  It operates an extensive global network exchange, powered by BTI's intelligent networking software and systems, to enable the delivery of on-demand metro connectivity services. Epsilon has created an application-aware network to rapidly scale capacity to support 100G connectivity and facilitate on-demand switching of cloud-based application workloads between data centres.

The partnership initially involves the establishment of points of presence in two of Digital Realty's data centers in the UK (Chessington and Woking). The connectivity platform will operate on a major dark fiber ring, commissioned by Digital Realty, and connecting to 22 key London-area Internet and metro gateway centres.  Further expansion across Europe is contemplated.

"Our goal is to provide flexible solutions that accommodate the evolving needs of our customers' businesses, now and in the future," said Bernard Geoghegan, Managing Director, EMEA, for Digital Realty. "Our London-area customers require on-demand and rapidly scalable automation of their bandwidth as part of their data centre solutions. We are pleased to offer this platform as we continue to build the Digital Realty Ecosystem across our portfolio in Europe and globally."

"Epsilon's global network exchange, powered by BTI's Cloud Networking Solution, provides the platform that we believe will help us achieve our distributed cloud data centre vision," said Robert Bath, Vice President, Engineering, at Digital Realty. "We expect the solution to attract a new class of global cloud and content provider customers to our data centres."

"We see growing demand from data centre customers for our outsourced connectivity model and this agreement with Digital Realty reaffirms our commitment to supporting cloud and content connectivity development," said Andreas Hipp, Chief Executive Officer at Epsilon. "As a global provider, we are driven by service excellence and agile operational objectives. Working with BTI helps us achieve our dual mission by simplifying network operations and increasing service velocity, while enabling the introduction of new cloud connectivity services."

http://www.digitalrealty.com
http://www.epsilontel.com
http://www.btisystems.com

Digital Realty Completes $3 Billion Refinancing

Digital Realty Trust, which has 127 data centers around the world, has completed the refinancing of its global revolving credit facility and term loan.  The refinancing allowed the company to reduce pricing, extend loan maturities and increase its aggregate commitments by $450 million. The combined facilities total $3 billion, representing the 5th largest unsecured credit facilities among US REITs. The refinancing provides funds for acquisitions, development, redevelopment, debt repayment, working capital and global expansion.

"We are very pleased with the strong demand we received from the international lending community to participate in the refinancing of these facilities, which were oversubscribed with commitments totaling $4.6 billion from 27 financial institutions from around the globe," said A. William Stein, Chief Financial Officer and Chief Investment Officer of Digital Realty.  "To satisfy this demand, we upsized our Global Revolving Credit Facility by $200 million and increased our Term Loan by $250 million.  In addition, the improved pricing grid is equal to or better than any widely syndicated credit facility for a U.S. large cap investment grade REIT, including those with a credit rating higher than DLR's BBB/Baa2 rating.  We believe these positive trends illustrate the institutional lender community's view on the strength of our balance sheet and underlying business, while providing us with greater financial flexibility as we continue to expand our portfolio globally."

http://www.digitalrealty.com/

Thursday, May 30, 2013

Digital Realty Buys Six Buildings to Expand Austin Data Centers

Digital Realty Trust has acquired six buildings at the MetCenter Business Park in Austin, Texas for $31.9 million.  The facilities include operating data centers and flex office space totaling approximately 337,000 square feet.  The overall portfolio is currently 90% leased to a variety of data center, biotechnology, technology and/or telecommunications enterprises.

The six buildings are located adjacent to Digital Realty's data center at 7500 Metro Center Drive, near Austin-Bergstrom International Airport.

"The acquisition of this portfolio achieves several key objectives for us," said Scott Peterson, Chief Acquisitions Officer at Digital Realty. "It expands our existing data center footprint in the Austin market, while providing stable cash flow immediately at an attractive going-in cap rate. Second, it provides near-term opportunity to add value by lease existing vacant space. And third, it offers the option to convert a portion of the property to data center space over the longer term as leases expire."

http://www.digitalrealty.com