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Digital Realty (DLR) Opens Its Largest Data Center in Singapore

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Zacks Equity Research
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Expanding its footprint in Singapore, Digital Realty Trust DLR unveiled its largest data center in the region. The facility, known as Digital Loyang II or SIN12, is the data-center operator’s third facility in Singapore and marks its total committed investment to date to more than US $1 billion in the region.

The 50-megawatt data center will enable local and multi-national enterprises to utilize PlatformDIGITAL — Digital Realty’s global data center platform — for the deployment of critical infrastructure and scaling of their respective digital businesses.

With strong prospects for data center growth in Singapore, Digital Realty’s expansion in the region is a strategic fit. In fact, SIN12 is considerably pre-leased to numerous preeminent global cloud service providers, local and global financial service providers and leading Southeast Asia enterprises.

Moreover, SIN12 will offer a wide array of colocation services, catering to regional customers in Singapore. This will enable customers to expand their critical infrastructure on-demand in a connected data ecosystem and proximity to carriers, cloud service providers and network.

Moreover, the new facility is adjacent to Digital Loyang I or SIN11 and both data centers are connected by diverse high-count fiber routes. This offers new connection opportunities to customers in both facilities to connect directly through dark fiber cross-connects and gain access to a connected data community on Digital Realty's open global platform.

Per management, “The transition to the digital economy has impacted the way companies across all industries create and deliver value. There's a growing need for a combination of open interconnection and next-generation colocation that will reduce the complexity of digital transformation. Expanding our footprint in Singapore will enable us to better help our customers enhance their digital transformation efforts and scale their digital business models regionally as well as globally."

In fact, technological advancements such as the Internet of Things, 5G, autonomous vehicles and artificial intelligence are driving digital transformation. Moreover, escalating growth of data, rapid accelerations in cloud adoption and greater demand for IT outsourcing have propelled the demand for data-center infrastructure.

Hence, as infrastructure providers for this rapidly-growing digital economy, data-center providers such as Digital Realty, Equinix, Inc. EQIX, CyrusOne Inc. CONE and CoreSite Realty Corporation COR are well-placed for sustainable growth. Hence, Digital Realty’s efforts to expand its PlatformDIGITAL position it well to capitalize on such tailwinds.

Shares of this Zacks Rank #3 (Hold) company have gained 3.7% over the past year compared with the industry's rally of 27%.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

While Digital Realty is expanding its international footprint to benefit from the rising data-center requirements of customers globally, the process exposes the company’s earnings to foreign currency translation.

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Equinix, Inc. (EQIX) : Free Stock Analysis Report

Digital Realty Trust, Inc. (DLR) : Free Stock Analysis Report

CoreSite Realty Corporation (COR) : Free Stock Analysis Report

CyrusOne Inc (CONE) : Free Stock Analysis Report

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