Posted By Rich Miller On June 1, 2006 @ 7:30 am In Austin,Chicago,Dallas,Digital Realty,Los Angeles,New York,Silicon Valley | Comments Disabled
Technology landlord Digital Realty Trust (DLR) said today that it will launch a large-scale project to redevelop data center space it owns in 10 major U.S. markets. The investment represents a huge vote of confidence in the data center market amid growing demand for premium space. It also allows Digital Realty to capitalize on data center space shortages and rising prices in major Internet cities.
Demand for data center space is growing along with the Internet economy. As television and movie content moves to a digital delivery model, an enormous volume of digital files will need to be stored in data centers to provide “always on” high-speed access. Meanwhile, Microsoft, Google and Yahoo are planning huge infrastructure expansions to deliver online services and applications.
Doigital Realty’s redevelopment projects will create more than 330,000 square feet of advanced data center space, with approximately 40 megawatts (MW) of available UPS load. Sites selected for development include Digital Realty Trust facilities in Northern New Jersey, Boston, Philadelphia, Charlotte, Atlanta, Chicago, Austin, Dallas, Los Angeles and San Francisco.
“Demand for high-quality datacenter space has been strong in each of these ten cities, which makes the timing of these redevelopment projects ideal,” said Chris Crosby, Senior Vice President of Sales and Technical Services at Digital Realty Trust. “Each of these datacenter spaces will offer the world-class technical capabilities that Digital Realty Trust facilities are known for, including outstanding electrical power availability – an increasingly rare commodity in the technology real estate market.”
Here’s an overview of the 10 projects announced today:
This continues a trend in which landlords of carrier hotels and data centers have begun developing unused space and marketing it directly to end users, and takes advantage of Digital Realty’s expertise in developing and managing data center space. Digital Realty is also seeking to gain a competitive advantage, offering itself as a long-term landlord in a market that is attracting many new investors and developers.
In its announcement, Digital Realty emphasized its long-term commitment to the data center market, apparently seeking to reassure customers concerned about landlord stability. As the technology real estate market has rebounded, the value of data centers has increased, attracting new investors and developers. Digital Realty suggests that this could provide them with an advantage.
“Digital Realty Trust is the only owner that specializes in datacenter facilities on a national and international basis and that has true expertise in building and operating advanced turn-key datacenter facilities,” said Michael F. Foust, Chief Executive Officer of Digital Realty Trust. “We have a long-term commitment to the technology real estate market, and that aligns our own interests with those of our clients. Our commitment guarantees stability and consistency of service that is in stark contrast to what many customers experience when they work with developers and investors with short-term divestiture goals. We are committed to being long-term partners with our tenants.”
“Control is particularly important for most clients, and our approach is fundamentally different from what one would find in a colocation environment where companies often cannot be in command of their data center,” noted Crosby. “Digital Realty Trust gives tenants a tremendous amount of control over their environment: They can have control over security levels, the kind of equipment they install, facility management, and many other issues. We are here to support the technical and business needs of our clients, and our unique approach to working with tenants is a reflection of that commitment.”
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 Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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