New redevelopment project to add approximately 48,000 square feet of Turn-Key Datacenter space to supply-constrained Santa Clara market
SAN FRANCISCO, May 25, 2010 /PRNewswire via COMTEX/ --Digital Realty Trust, Inc. (NYSE:DLR, news, filings), the world's largest wholesale datacenter provider, announced today that it acquired two shell buildings totaling approximately 82,000 square feet located at 3105 & 3115 Alfred Street in Santa Clara, California. Combined, the buildings can support the development of six 1125 kW Turn-Key Datacenter(R) PODs totaling approximately 48,000 square feet of raised floor datacenter space.
"Combined with the acquisition of 1725 Comstock announced earlier this month, we can continue to incrementally build out and deliver Turn-Key space in Santa Clara to meet the strong demand in Silicon Valley for our datacenter product," commented Scott Peterson, Senior Vice President of Acquisitions for Digital Realty Trust. "The buildings are strategically located on a single 4.2 acre parcel across the street from our Space Park campus, allowing us to achieve meaningful economies of scale as we expand our footprint in this important, supply-constrained market."
The Company plans to build out the six Turn-Key Datacenter PODs in two phases. Phase I is underway and includes Powered Base Building upgrades to the core and shell plus the construction of four 1125kW PODs at 3105 Alfred Street, a 50,000 square foot single story facility. The first POD is expected to come on line in the first quarter of 2011. Phase II consists of Powered Base Building upgrades and building out two 1125 kW Turn-Key Datacenter PODs at 3115 Alfred Street, a two-story building totaling 32,000 square feet.
Digital Realty Trust Turn-Key Datacenter facilities provide state-of-the-art environments for supporting mission critical infrastructure, with advanced cooling, power, redundancy, and sustainability features to ensure that critical applications are available while optimizing energy efficiency. Digital Realty Trust's Turn-Key Datacenters are scalable from hundreds of kilowatts of IT Load to megawatts of IT load and are located in markets throughout North America and Europe. Each Turn-Key Datacenter facility is physically secure and features a state-of-the-art power and cooling architecture that has been optimized for green operation. Every Turn-Key Datacenter is built using the Company's proprietary POD Architecture(R) and uses metered power to ensure that clients pay only for the power that they use.
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 86 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 15.2 million rentable square feet as of May 25, 2010, including 2.0 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/.
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, including statements related to the development of additional datacenter space, plans for such development and expected time for completion of such development. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions; current local economic conditions in our geographic markets; 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); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; our failure to repay debt when due or our breach of covenants or other terms contained in our loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; our ability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to public companies; our failure to maintain our status as a REIT; potential adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in real estate and zoning laws and increases in real property tax rates. For a further list and description of such risks and uncertainties, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2009 and the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. 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.
Turn-Key Datacenter, Powered Base Building and POD Architecture are registered trademarks of Digital Realty Trust.
For Additional Information:
A. William Stein
Chief Financial Officer and
Chief Investment Officer
Digital Realty Trust, Inc.
Pamela A. Matthews
Director of Investor Relations
Digital Realty Trust, Inc.
SOURCE Digital Realty Trust, Inc.