Company partnered with elected officials, community leaders and economic developers to create framework for tax bill
SAN FRANCISCO, June 18, 2013 /PRNewswire/ -- Digital Realty Trust, Inc. (DLR), a leading global provider of data center solutions, today announced its strong support of the recently passed tax incentive legislation that was created to advance data center development opportunities in Arizona.
The legislation allows data center owner/operators and qualified tenants to receive an exemption for sales and use taxes attributable to data center equipment purchased for use in a qualified data center. To qualify a data center, an owner/operator must initiate new investment in the state of at least $50 million for urban locations and $25 million for non-urban locations.
Upon certification, owner/operators and qualified tenants can benefit from the tax exemption for 10 years. Additional features include benefits for existing owner/operators that have created investment in the state over the past six years equal to $250 million or more. Also unique is this legislation's focus on sustainable redevelopment; if an owner/operator seeks to redevelop and repurpose a vacant structure or seeks to redevelop an existing structure using sustainable development practices, the project can qualify for an enhanced tax benefit period of 20 years.
"Arizona's accomplishment here should be applauded and we are proud to have played a material role in getting this done for the benefit of the state, the data center industry and, most importantly, our current and future customers in the area," said David Caron, Senior Vice President, Portfolio Management at Digital Realty.
Over the past year, Digital Realty has worked with community, business and industry leaders to create a framework for the legislation so that it would meet the needs of all parties involved. In 2012, the company founded the Arizona Data Center Coalition, a diverse group of wholesale data center and colocation facility owner/operators, local utility providers, brokers, economic development professionals and others, to publicly advocate for continuing improvements to legislation to place and keep Arizona in the top tier of states to host data centers. For more information about the Arizona Data Center Coalition, visit www.arizonadatacentercoalition.org.
"We are pleased to see this legislation pass and excited about the benefits it will afford our local customers," said Michael F. Foust, Chief Executive Officer of Digital Realty. "And we are gratified that our dedication of time and resources has helped to produce legislation that will meet the unique needs of the data center industry as well as the economic development needs of the State of Arizona."
About Digital Realty
Digital Realty Trust, Inc. focuses on delivering customer driven data center solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data center needs. Digital Realty'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's 122 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 22.7 million square feet as of April 26, 2013, including 2.6 million square feet of space held for development. Digital Realty's portfolio is located in 32 markets throughout North America, Europe, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty's website at http://www.digitalrealty.com.
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, including statements related to the new Arizona tax incentive legislation, and the benefits to the data center industry, data center development, the Arizona economy and our customers. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. government's credit rating; 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; risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings 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 inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development 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 development; 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 reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our 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 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, 2012 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. 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.
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|A. William Stein||Pamela M. Garibaldi|
|Chief Financial Officer and||Vice President, Investor Relations|
|Chief Investment Officer||Digital Realty Trust, Inc.|
|Digital Realty Trust, Inc.||+1 (415) 738-6500|
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