Independent Survey Commissioned by Digital Realty Trust Reports that Need for Additional Power is Top Driver for Data Center ExpansionsSAN FRANCISCO, March 3, 2010 /PRNewswire via COMTEX/ — Digital Realty Trust, Inc. (NYSE:DLR, news, filings), the world’s largest wholesale datacenter provider, has released the results of its annual study of the U.S. data center market. The study is based on a detailed survey of senior decision makers at large corporations in North America who are responsible for shaping their companies’ data center strategies. The research was conducted for Digital Realty Trust by the respected research firm Campos Research & Analysis. Highlights from the study are provided below and a more detailed presentation of the survey results will take place in a webinar on March 15, 2010 featuring IDC Vice President Michelle Bailey and Digital Realty Trust senior executive Chris Crosby. To register for the event, visit www.digitalrealtytrust.com.
Key findings of the new study include the following:
- 83 percent of respondents are planning data center expansions in the next 12 to 24 months;
- 36 percent of respondents have definite plans to make those expansions during 2010;
- 73 percent of respondents plan to add two or more facilities as part of their data center expansions;
- The need for additional power is the top reason for data center expansions, rising from fifth place on last year’s survey to first place this year;
- Data center and IT budgets are both projected to increase by 8 percent in 2010, up from 7 percent and 6 percent, respectively, last year;
- Of those planning to expand, 70 percent are planning large projects of at least 15,000 square feet in size or 2 mW or greater of power; and
- 83 percent of respondents with definite plans to expand in 2010 plan to do so with a partner that specializes in data center design and construction or data center leasing.
“These survey findings point to strong demand for data center space this year and next year as a large majority of enterprises expand their IT infrastructure. One of the most interesting pieces of data in this study is the lead role that power is now playing in these expansions. The need for additional power has become the main driver for data center expansion plans as companies seek facilities with adequate power and favorable utility rates to control operating costs,” said Chris Crosby, Senior Vice President of Corporate Development for Digital Realty Trust.
Mr. Crosby added: “Another key finding of this study is the increasing importance of data center partners in these corporate expansions. More than ever before, enterprises are turning to wholesale providers and other specialists for these data centers in order to leverage their expertise and to reduce or eliminate capital expenses.”
Of those companies planning to expand:
- 53 percent plan to do so by leasing from a wholesale data center provider;
- Finance is taking a greater role in how companies select partners; and
- C-level executives have replaced the IT department as the final decision maker for data center partner decisions – serving as the primary influencer by a margin of 2:1.
Commenting on the survey results, Michelle Bailey, Research Vice President for IDC said, “Last year, many enterprise customers put their plans for new datacenter construction on hold as the capital markets dried up. As a result, we have seen IT organizations increasingly look to third party suppliers with flexible financing strategies as a means to supplement their own aging datacenters.”
The study also examined data center energy efficiency initiatives:
- 76 percent of respondents now meter their power use;
- The number of companies that meter power down to the PDU level increased by 29 percent over last year;
- 75 percent of companies are confident they can comply with future carbon emissions-related and energy-related regulations;
- The average reported PUE energy efficiency rating for respondents’ data centers is 2.9; and
- One in six respondents report PUE ratings of less than 2.0 for their facilities
“There has been significant progress over the past two to three years in the area of data center energy efficiency. Over that period, the industry has gone from power metering being the exception to power metering being utilized by more than three quarters of respondents. Awareness of PUE is also nearly universal now, with 96 percent of companies familiar with the emerging standard for measuring energy efficiency,” added Mr. Crosby. “These are very positive signs that companies better understand their data centers’ energy use and can make informed decisions to reduce energy consumption.”
About the Methodology
Metrics reported in this study are based on Web-based surveys of 300 IT decision makers at large corporations in North America with annual revenues of at least $1.0 billion and/or at least 5000 employees. All survey participants are directly involved in the process of managing corporate data centers, executing contracts for new data centers, implementing new data centers or expanding existing data centers. All participants were senior level executives, including CxOs, in IT, MIS, IS or Finance. The survey was conducted in January 2010.
About Campos Research & Analysis
Campos Research and Analysis conducts consumer research and business-to-business research, using qualitative and quantitative methodologies, to address the business issues of client companies. Campos Research and Analysis was founded in 1988 by Rusty Campos. Ellen Campos became a principal in the firm in 2000. Between them, the principals have nearly 50 years of research experience, both client-side in Fortune 500 companies and supply-side with Honomichl 50 market research companies. For more information, visit www.cr-a.com.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key Datacenter(R) and Powered Base Building(R) datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust’s 84 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 14.9 million rentable square feet as of February 25, 2010, including 1.8 million square feet of space held for redevelopment, Digital Realty Trust’s portfolio is located in 27 markets throughout North America and Europe. For additional information, please visit Digital Realty Trust’s website at http://www.digitalrealtytrust.com.
Turn-Key Datacenter, Powered Base Building and POD Architecture are registered trademarks of Digital Realty Trust.
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements related to the data center expansion plans of other companies and expectations regarding data center and IT budgets, the need for additional power, demand for data center space, the role of power in data center expansions and the importance of data center partners in corporate expansions. These risks and uncertainties include, among others, the following: the impact of the ongoing deterioration in global economic, credit and market conditions; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in our industry or the industry sectors that we sell to (including risks relating to decreasing real estate valuations and impairment charges); financial market fluctuations; and changes in foreign currency exchange rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the United States Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2008 and subsequent reports on Form 10-Q and Form 8-K. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For Additional Information:
A. William Stein
Chief Financial Officer and
Chief Investment Officer
Digital Realty Trust, Inc.
+1 (415) 738-6500
Director of Investor Relations
Digital Realty Trust, Inc.
+1 (415) 738-6500
SOURCE Digital Realty Trust, Inc.