Digital Realty Trust Inc. (DLR), a niche real estate investment trust (:REIT), has recently unveiled two new facilities at Digital Chessington data center in South West London, bringing on board 2,880 KW Turn-Key Flex data center space available for lease. The company further has three additional facilities under various stages of development at the site, which when complete would bring the cumulative capacity of the facility to 7,200 KW.
Digital Chessington is a Tier 3 certified data center facility in the offing in the London area. The internationally recognized tier certifications are provided by the Uptime Institute, a New York City-based data center professional service organization. Tier 3 certification signifies that Digital Realty’s data centers could run 24/7, with a design to avoid downtime in the event of maintenance or hardware replacement.
The facility offers strong communications links to the city centre via a range of diverse carrier options, and benefits from high-capacity robust power supplies from a dedicated 18MVA electricity on-site sub-station. In addition, Digital Chessington enables effective power utilization efficiency (:PUE), while supporting a flexible approach to customers’ data centre operations. The site currently contains three floors of office space, with each data hall benefiting from ample staging workspace for technical operations besides access to lift and power and cooling facilities throughout.
The data center facilities of Digital Realty feature a state-of-the-art power and cooling architecture that has been optimized for green operations. The facilities typically use metered power to ensure that clients pay only for the power consumed. In addition, each data center facility is equipped with Digital Realty's PowerVU software, which enables centralized monitoring and management of data center power consumption, energy efficiency and load analysis to increase client profitability.
Digital Realty operates data centers and digital storage facilities which are primarily used by telecommunication companies to maintain their Internet presence or augment data networks. Data centers usually incur high costs for building and maintenance, and as such the supply is relatively inelastic.
Digital Realty primarily focuses on investment in institutional quality data center facilities in high barriers-to-entry markets with significant potential to generate attractive risk-adjusted return on investments (ROI).
The company provides flexible and cost effective data center facilities to a wide range of customers, including domestic and international companies across multiple industry verticals. Its portfolio includes 109 properties throughout Europe, North America, Asia, and Australia spanning approximately 21.1 million square feet (including 2.2 million square feet of redevelopment space).
We presently have a Neutral recommendation for Digital Realty, which currently has a Zacks #3 Rank that translates into a short-term Hold rating. We also have a Neutral recommendation and a Zacks #3 Rank for Brandywine Realty Trust (BDN), one of the competitors of Digital Realty.
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