Company Strengthens Position in One of the Most Desirable Data Center Markets in the U.S.
SAN FRANCISCO, Nov. 16, 2015 /PRNewswire/ -- Digital Realty Trust, Inc. (DLR), a leading global provider of data center solutions, announced today that it has closed on the acquisition of 125.9 acres of undeveloped land in Loudoun County, Virginia for a total purchase price of $43 million. The site is adjacent to one of the main fiber trunk runs in the county as well as a recently constructed sub-station and Dominion Virginia Power transmission lines. The parcel is expected to support the development of over two million square feet and the build-out of roughly 150 megawatts.
The site is located less than a mile from Digital Realty's existing data center campus in Ashburn, Virginia. Construction work is expected to begin in 2016, subject to market demand and according to the company's latest design specifications. Delivery will be phased to facilitate customer expansion requirements upon completion of the existing Digital Ashburn data center campus.
"This acquisition is consistent with our strategy of investing in our global campus network to support the deployment of hybrid cloud environments near Internet hubs, providing capacity to grow with our best clients, and implementing our latest facility designs to support growing demand in Northern Virginia," said Digital Realty's Chief Executive Officer A. William Stein. "Data center demand in Ashburn remains robust, and we expect that trend to continue. Given that we are projected to approach full capacity at our existing Digital Ashburn data center campus, this land acquisition will enable us to continue to support our customers' growth with no downtime. We are pleased to expand our footprint and to strengthen our position in Northern Virginia, which has proven to be one of the most desirable data center markets in the United States."
About Digital Realty
Digital Realty Trust, Inc. supports the data center and colocation strategies of more than 1,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from financial services, cloud and information technology services, to manufacturing, energy, gaming, life sciences and consumer products. www.digitalrealty.com
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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 purchase of land at the Loudoun County site; development plans, including expected square meters and megawatt capacity, and timing of construction; demand for data center space in Loudoun County; projections for the Ashburn site and design specifications. These risks and uncertainties include, among others, the following: the impact of current 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; 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, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and development space; 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, as amended, for the year ended December 31, 2014 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015. 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.