New Substation to Meet Power Needs in Santa Clara, California for Datacenter Customers
SAN FRANCISCO, Nov. 11, 2010 /PRNewswire via COMTEX/ --
The primary criteria for new datacenter construction is the availability of power from the utility grid and, as important, the ability to secure that power for the datacenter customer. Santa Clara is a key data center market for Silicon Valley enterprise customers, in large part because Silicon Valley Power offers highly competitive power pricing and an attractive business environment.
To help meet the growing demand for power from Digital Realty Trust datacenter customers, the Company deeded a land parcel located in its Santa Clara Datacenter Park to Silicon Valley Power for the construction of the "Kenneth" substation, a 65 MW general distribution substation. The new substation is expected to come on line by early 2011. According to Larry Owens of Silicon Valley Power, "To meet the needs of our data center customers and other enterprise consumers, we allocate new power through the development of these substations based on load growth forecasts and the density of certain areas. Our current project, the Kenneth substation, is being built on the Space Park Drive parcel due to the power demands of data centers customers and other users in the area."
"Deeding the land to Silicon Valley Power for the construction of the new substation was a win-win for our customers, who are the power consumers, and for Silicon Valley Power," said Michael F. Foust, Chief Executive Officer for Digital Realty Trust. "Digital Realty Trust enables our customers to deliver their critical business applications by providing flexible, reliable and cost effective datacenter facilities. Securing power for their datacenter requirements, which includes having strong relationships with utility providers, is a priority for both our customers and Digital Realty Trust."
About Silicon Valley Power
Silicon Valley Power is the trademark adopted for use by the century-old Electric Department of the City of Santa Clara, California. SVP provides power to more than 50,000 customers, including Applied Materials, Intel, National Semiconductor, Digital Realty Trust and Yahoo!, at rates 25 to 45 percent below neighboring communities. SVP also offers customers a 100 percent renewable energy option through its Santa Clara Green Power program and is an active participant in the wholesale energy markets in the Western United States. Visit siliconvalleypower.com for more information.
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. enables customers to deliver critical business applications by providing flexible, reliable and cost effective datacenter facilities. Digital Realty Trust's customers include domestic and international companies across a variety of industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust's 95 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 16.4 million square feet as of November 4, 2010, including 1.9 million square feet of space held for redevelopment. Digital Realty Trust's portfolio is located in 27 markets throughout Europe and North America. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com.
Safe Harbor Statement
This press release contains forward-looking statements which are based on Digital Realty Trust, Inc.'s current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to new datacenter construction and availability of power, when the new substation is expected to come on line and power demands of data centers customers and other users in the Santa Clara area. 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 its geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in its industry or the industry sectors that it sells to (including risks relating to decreasing real estate valuations and impairment charges); its 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; its failure to obtain necessary debt and equity financing; increased interest rates and operating costs; its failure to repay debt when due or its breach of covenants or other terms contained in its loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; its inability to manage its growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; its failure to successfully operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of its 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; its inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; its inability to acquire off-market properties; its inability to comply with the rules and regulations applicable to reporting companies; its failure to maintain its status as a REIT; possible adverse changes to tax laws; restrictions on its 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 Digital Realty Trust, Inc. with the U.S. Securities and Exchange Commission, including Digital Realty Trust, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2009 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010. Digital Realty Trust, Inc. 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||Pamela A. Matthews|
|Chief Financial Officer and||Director of Investor Relations|
|Chief Investment Officer||Digital Realty Trust, Inc.|
|Digital Realty Trust, Inc.||+1 415-738-6500|
SOURCE Digital Realty Trust, Inc.