Telecom Ramblings

PR Archives:  LatestBy Company By Date


Press Release -- December 3rd, 2013
Source: Digital Realty Trust
Tags:

Digital Realty Qualifies for Incentives in the State of Arizona for its Data Center Operations

Long-Term Tax Relief Offers Significant Benefit to Digital Realty Clients
Company Release - 12/03/2013 08:00

SAN FRANCISCO, Dec. 3, 2013 /PRNewswire/ -- Digital Realty Trust (NYSE:DLR, news, filings), a leading global data center solution provider, announced today that its Arizona data center locations have been certified under the Arizona Computer Data Center (CDC) program. In addition, Digital Realty's data centers in Arizona have also met the qualifications for the "Sustainable Redevelopment Project" exemption, thus doubling the certification benefits period from ten to twenty years.

"As a result of the State's recent actions, locating a data center in Arizona has become more attractive than ever for clients seeking enterprise quality data center space, with robust power and connectivity at an even lower cost of occupancy," said Matt Miszewski, Senior Vice President, Sales of Digital Realty.

"Digital Realty is pleased to offer these landmark economic benefits to our data center clients in the State of Arizona," said Michael Foust, Chief Executive Officer of Digital Realty. "Those who partner with us will be able to take advantage of substantial long-term tax savings and overall cost reductions in their data center operations and investments in Arizona."

Under the CDC program, Digital Realty and its tenants may qualify for exemptions from all State, County and local Transaction Privilege Tax (TPT) and Use taxes on the purchase of all data center equipment. Tenants must contract for use of at least 500 Kilowatts per month, for a minimum of two years, to qualify. Jim Grice, a Partner with Lathrop & Gage, LLP, who played an integral role in the creation of the new CDC program and worked with Digital Realty on the certification of its Arizona portfolio, explains, "For Digital Realty's tenants, the new CDC program combined with the additional depreciation program passed into law in 2012 can create tax savings of 90 percent or more attributable to the purchase and use of data center equipment, with unlimited server refresh potential over 20 years."

Further details on the Computer Data Center tax exemptions program and the additional depreciation program can be found at the Arizona Commerce Authority website: http://www.azcommerce.com/incentives/aca/

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 financial services, cloud and information technology services, to manufacturing, energy, health care and consumer products. Digital Realty's 130 properties, including twelve properties held as investments in unconsolidated joint ventures, comprise approximately 24.0 million square feet as of September 30, 2013, including 2.8 million square feet of space held for development. Digital Realty's portfolio is located in 33 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 tax incentives available at our Arizona data centers and related benefits, including tax savings and cost reductions for 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 Reports on Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 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.

For Additional Information:

A. William Stein John J. Stewart
Chief Financial Officer and Senior Vice President
Chief Investment Officer Investor Relations
Digital Realty Trust, Inc. Digital Realty Trust, Inc.
+1 (415) 738-6500 +1 (415) 738-6500

PR Archives: Latest, By Company, By Date