Telecom Ramblings

PR Archives:  LatestBy Company By Date


Press Release -- May 25th, 2011
Source: Digital Realty Trust
Tags: Consolidation, Construction, Datacenter, Exchange, Expansion

New Research Reveals Data Centre Expansion a Priority for European Businesses

Independent survey commissioned by Digital Realty Trust reveals strong demand for new data centre space

LONDON, May 25, 2011 /PRNewswire via COMTEX/ --

Digital Realty Trust, Inc. (NYSE:DLR, news, filings), a leading global wholesale data centre provider, today revealed the latest results of its annual industry survey, which show that over eighty percent of participating European businesses plan to expand their data centre infrastructure over the coming year. Eighty-two percent of organisations polled reported that they would either 'definitely' or 'probably' expand their data centre facilities in 2011, with half planning to expand in two or more locations.

The study of IT decision-makers at 205 major UK and European organisations highlights the strengthening of the data centre market following the economic downturn. Headline findings include:

  • Of those who intend to expand in 2011:
    • 73 percent plan to do so within Europe, with a majority wanting to expand within their own country.
    • The UK proved the most popular target destination, with 37 percent of respondents planning to locate a facility there, followed by France (30 percent), Germany (26 percent), Spain and the Netherlands (21 percent each).
    • Capital cities and recognised business hubs remain the location of choice for new data centres, with London, Paris, Dublin, Amsterdam and Frankfurt proving the most popular locations.
    • Outside of Europe, the US is the next largest target market for expansion for European businesses (25 percent), followed by Asia-Pacific (21 percent).
  • The main drivers behind expansion are improving security, disaster-recovery and implementing a consolidation strategy.

The results for the section of the survey relating to power capacity and consumption reveal a small increase of respondents measuring power efficiency. The nominal increase suggests there is still room for improvement. This is further illustrated by the slight increase in the average PUE levels since the Company's survey last year:

  • Power capacity per rack in the respondents' existing data centres rose by an average of nine percent in 2010 with power density averaging 5.5kW per rack. 43 percent are using more than 6kW per rack.
  • However, the proportion of respondents measuring their power consumption remained unchanged from last year's results, with two-thirds currently monitoring their energy usage.
  • Power Usage Effectiveness (PUE) levels were up slightly from last year, with the average PUE rating rising to 2.66 from 2.57 in the 2010 survey.
  • However, 27 percent of those questioned were not aware of the PUE value for their organisation's data centres or were not familiar with the measurement tool, suggesting that opportunities remain for businesses to reduce operating costs related to power consumption as well as the environmental impact of their IT load.

The study finds that two-thirds of respondents will seek support from a partner organisation during the process of acquiring or building a new data centre facility:

  • Sixty-seven percent will use a partner during the design and construction process and/or to lease wholesale space from a partner.
  • The biggest factor cited when choosing a partner organisation is access to a greater choice of products, marking a departure from the "one-size-fits-all" approach of yesteryear.
  • Advice about regulatory issues is the most important capability a partner can offer.
  • Interest in "do-it-yourself" data centres continues to wane, with only 30 percent of responding companies considering this as an option, down four percent from last year.

Adam Levine, VP Europe at Digital Realty Trust, commented, "As a major investor and developer in the data centre market, the results of the survey confirm that our product strategy and the geographical areas where we are concentrating our investments are aligned with the priorities of our core customer base.

"The survey also highlights the growing importance of power usage effectiveness (PUE) as a means for customers to monitor the performance of their facilities. This is another area where we have addressed the needs of the market. Last year we introduced PowerVU, a web-enabled tool which enables our customers to monitor their PUE in real-time and therefore optimize their energy consumption.

"Overall, the survey indicates that the European data centre market is about to enter a cycle of robust growth. Solutions providers such as Digital Realty Trust will continue to play an integral role in supporting this growth. We are confident that we respond positively to the priorities cited by respondents when they are choosing a partner and that our product range, our operational experience and financial stability mean that we are well positioned to be the partner of choice for many of the data centre projects currently being planned."

Survey Methodology

This independent survey was conducted by Campos Research and Analysis in January 2011. 205 respondents participated from large companies with at least pounds Sterling 600m in annual revenues or over 2,000 employees and headquartered in the UK, Ireland, France, Germany, Spain and the Netherlands. Respondents are responsible for day-to-day data centre management, contract execution, implementing new data centres or expanding existing facilities within their organisations.

About Digital Realty Trust, Inc.

Digital Realty Trust, Inc. enables customers to deliver critical business applications by providing secure, reliable and cost effective datacentre facilities. Digital Realty Trust's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty Trust's 96 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 16.9 million square feet as of April 29, 2011, including 2.2 million square feet of space held for redevelopment. Digital Realty Trust's portfolio is located in 28 markets throughout Europe, North America and Singapore. Additional information about Digital Realty Trust is included in the Company Overview, which is available on the Investors page of Digital Realty Trust's website at http://www.digitalrealtytrust.co.uk.

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 the survey results, the data centre expansion plans of other companies, power capacity, usage and monitoring, PUE levels, energy efficiency and lower energy costs, and expectations regarding the survey respondents' demand for data centre space, reasons for datacentre expansion, data centre growth locations and the use of partners in data centre projects. 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; risks associated with using debt to fund its business activities, including re-financing and interest rate risks, its failure to repay debt when due, adverse changes in its credit ratings 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 integrate and 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; losses in excess of its insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including 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, 2010 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. 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.

Turn-Key Datacenter, Powered Base Building and POD Architecture are registered trademarks of Digital Realty Trust.

For Additional Information:
A. William Stein Pamela Matthews Garibaldi Frederick S. Potter
Chief Financial Officer and Vice President, Investor Relations Head of International Operations
Chief Investment Officer and Corporate Marketing Digital Realty Trust, Inc.
Digital Realty Trust, Inc. Digital Realty Trust, Inc. +44 207 954 9100
+1 (415) 738-6500 +1 (415) 738-6532

SOURCE Digital Realty Trust, Inc.

PR Archives: Latest, By Company, By Date