Digital Realty Trust (DLR) released its earnings this morning, topped by the news that it has acquired three additional data centers since the beginning of the year, adding an additional 310,000 square feet of space to its portfolio. The deals illustrate the strength of the Northern Virginia and Silicon Valley markets, where demand for premium data center space continues to outstrip supply. While some builders and investors are focusing on the availability of affordable power in their data center site location decisions, Digital Realty continues to focus on the largest Internet markets.
In a clear sign of the strong demand, Digital Realty was able to purchase a large facility in nothern Virginia, and immediately lease the entire building. On Jan. 5, DRT Company acquired 21110 Ridgetop Circle in Sterling, Va., a vacant 135,000 square foot shell data center. Upon closing, the company signed a lease with a leading managed service provider for the entire building.
On Jan. 22, Digital Realty acquired 3011 Lafayette Street, a vacant 90,800 square foot shell data center located in Santa Clara, Calif., which will be held for redevelopment. On Feb. 27, DRT bought 44470 Chillum Place, a single story data center facility located in Ashburn, Va. The property includes 95,400 square feet, including 65,600 square feet of raised floor, and is fully leased through 2019.
Digital Realty's portfolio now includes 63 properties consisting of 84 buildings totaling approximately 11.8 million rentable square feet in 25 markets in North America and Europe, including 1.8 million square feet of space held for redevelopment.