Construction to Commence Immediately on Twelve-Megawatt Facility in Top-Tier Global Metro
SAN FRANCISCO, July 10, 2019 /PRNewswire/ -- Digital Realty (DLR), a leading global provider of data center, colocation and interconnection solutions, announced today it has closed on the acquisition of a 3.5-acre land parcel located in Ferriers-en-Brie, east of Paris. Environmental and operational building permits are currently in place, and Digital Realty will immediately commence construction on a new 12-megawatt data center.
"Our investment strategy has always been customer-driven, as demonstrated by the global footprint of our more than 200 data centers across 14 countries on five continents," said Digital Realty Chief Executive Officer A. William Stein. "Given local supply constraints and rapidly growing enterprise colocation and hyperscale customer demand, Paris is an attractive connectivity hub poised for significant growth, and we are delighted to re-establish a strong foothold in this key global metro. We remain committed to further strengthening connections and connectivity for our customers and extending our global platform to deliver comprehensive solutions around the world."
The parcel was acquired for approximately $6.9 million, expediting Digital Realty's re-entry into Paris and marking the first step of continued investment in this growing, top-tier European data center metro.
"This is an important milestone in our continued global expansion as the pre-eminent data center solutions provider," added Digital Realty Chief Financial Officer Andrew P. Power. "Paris is a leading technology and interconnection hub for the European region, and a key market for our global footprint. This transaction sets a solid foundation for the next phase of our growth in Europe, advancing our mission of providing customers with the trusted foundation for today's digital economy."
Digital Realty operates a network of industry-leading data centers across Europe, located in Amsterdam, Dublin, London, Geneva, Frankfurt and Manchester.
About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Latin America, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare and consumer products. www.digitalrealty.com. Follow Digital Realty on social media: LinkedIn, Twitter, Facebook, Instagram and YouTube
For Additional Information
Andrew P. Power
Chief Financial Officer
John J. Stewart
John Christiansen / Scott Lindlaw
Sard Verbinnen & Co.
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 and development of land near Paris, the expected benefits and demand in the European market and our expansion plans. These risks and uncertainties include, among others, the following: reduced demand for data centers or decreases in information technology spending; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data center space; the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services; our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers; breaches of our obligations or restrictions under our contracts with our customers; our inability to successfully develop and lease new properties and development space, and delays or unexpected costs in development of properties; the impact of current global and local economic, credit and market conditions; our inability to retain data center space that we lease or sublease from third parties; difficulty acquiring or operating properties in foreign jurisdictions; our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent acquisitions; our failure to successfully integrate and operate acquired or developed properties or businesses; difficulties in identifying properties to acquire and completing acquisitions; risks related to joint venture investments, including as a result of our lack of control of such investments; 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; our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital; financial market fluctuations and changes in foreign currency exchange rates; 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 and goodwill and other intangible asset impairment charges; our inability to manage our growth effectively; losses in excess of our insurance coverage; environmental liabilities and risks related to natural disasters; our inability to comply with rules and regulations applicable to our company; our failure to maintain our status as a REIT for federal income tax purposes; our operating partnership's failure to qualify as a partnership for federal income tax purposes; restrictions on our ability to engage in certain business activities; and changes in local, state, federal and international laws and regulations, including related to taxation, 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, 2018 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2019. 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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