DUBLIN, February 17 /PRNewswire/ --
- Independent Survey Commissioned by Digital Realty Trust Indicates that Datacentre Projects for the Coming 12-24 Months Have Increased and Expanded in Scope Despite Economic Conditions
Digital Realty Trust, Inc. (NYSE: DLR), the world's largest wholesale datacentre provider, has released the results of a new study of the datacentre market in Europe that assesses the datacentre plans of European companies and the trends that will shape the datacentre industry in the near term. The study, which succeeds the one Digital Realty Trust released in early 2008 about the European datacentre market, is based on a detailed survey of senior decision makers who are either directly responsible for datacentres or influence significant decisions related to datacentre operations at large European organisations. The research was conducted for Digital Realty Trust by the respected research firm Campos Research and Analysis.
Key findings of the new study include: - More than four out of five companies surveyed are planning datacentre expansions within the next two years. - More than a quarter of surveyed companies are actively planning immediate datacentre expansion projects that are commencing in 2009, and 69 percent of companies are planning projects that will commence in 12-24 months. - Compared to last year's survey results, there has been a 117 percent increase in the number of firms that will seek more than 2,500 square metres for their datacentres, indicating that the scope of datacentre projects has grown significantly. - Compared to last year's survey results, there has been a 22 percent increase in projected average datacentre space requirements from 1,300 square metres to 1,600 square metres - a significant increase that will impact the balance of supply and demand for datacentre space in European markets.
Despite the dramatic changes in the economic climate, this year's results indicate that an even larger proportion of European companies are planning datacentre projects. Moreover, these projects are bigger by every measure, said Bernard Geoghegan, Senior Vice President at Digital Realty Trust who oversees International Operations. These trends corroborate what we are continuing to hear from so many of our customers - that datacentres have become critical corporate assets that ensure competitiveness in difficult times and that will drive growth when economic conditions improve.
Other findings of note in the new study include: - A 21 percent increase compared to last year's survey in average power capacity per rack (4.7kW v. 5.7kW) that companies are projecting, which is a significant metric for datacentre power requirements. - More than 60 percent of companies plan to use a partner to expand rather than taking a do-it-yourself approach to these large datacentre projects. - Companies identified London as the top location for the datacentre projects being planned. Paris was identified as the second most popular location for upcoming datacentre projects.
This survey supports the strong demand for datacentre space we are continuing to see in London and Paris. These markets already have a significant imbalance between demand for datacentre facilities and very limited supply, and this study indicates that those will continue to be key locations for corporate datacentre projects over the next two years, Geoghegan added.
About the Methodology
Metrics reported in this study are based on Web-based surveys of IT decision makers at large corporations in four European countries: the U.K., France, Germany and Ireland. All surveyed companies have annual revenues of at least euro 1.0 billion and/or at least 2000+ employees. All survey participants are directly involved in the process of managing corporate datacentres, executing contracts for new datacentres, implementing new datacentres or expanding existing datacentres. All participants were senior level executives, including CxOs, in MIS, IS or Finance. The survey was conducted in October 2008.
About Campos Research and Analysis
Campos Research and Analysis conducts consumer research and business-to-business research, using qualitative and quantitative methodologies, to address the business issues of client companies. Campos Research and Analysis was founded in 1988 by Rusty Campos. Ellen Campos became a principal in the firm in 2000. Between them, the principals have nearly 50 years of research experience, both client-side in Fortune 500 companies and supply-side with Honomichl 50 market research companies. For more information, visit www.cr-a.com.
About Digital Realty Trust, Inc.
Digital Realty Trust owns, acquires, redevelops, develops and manages technology-related real estate. The Company is focused on providing Turn-Key Datacentre(SM) and Powered Base Building(SM) datacenter solutions for domestic and international tenants across a variety of industry verticals ranging from information technology and internet enterprises, to manufacturing and financial services. Digital Realty Trust's 75 properties, excluding one property held as an investment in an unconsolidated joint venture, contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise datacenter tenants. Comprising approximately 1.2 million square metres (13.0 million square feet) as of December 31, 2008, including approximately 150,000 square metres (1.6 million square feet) of space held for redevelopment, Digital Realty Trust's portfolio is located in 27 markets throughout Europe and North America. For additional information, please visit Digital Realty Trust's website at http://www.digitalrealtytrust.com.
Safe Harbor Statement
This press release contains forward-looking statements that 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 future demand for datacenter space generally and in specific markets, including London and Paris and the datacenter plans of the companies surveyed, including expansion plans generally and over the next one and two year periods, the size of planned datacenters, the average power capacity per rack and the use of a partner for datacenter projects. These risks and uncertainties include adverse economic or real estate developments in the Company's markets, including in the London and Paris and the UK and in Europe generally; general economic slow-downs or recessions; reductions in information technology spending in the UK and Europe; limited access to capital and liquidity issues for us, our customers or potential customers, difficulties in or inability to lease space, including redeveloped space; construction and development delays; increased development costs; tenant bankruptcies or defaults under leases by tenants; failure to commence rental payments on time under signed leases; increased interest rates; increased operating costs; failure to obtain necessary outside financing; decreased rental rates or increased vacancy rates; difficulties in identifying properties to acquire; completing acquisitions at all or at acceptable return levels; failure to successfully operate properties; failure of existing, acquired or redeveloped properties to perform as expected; reductions in property values; failure to maintain the Company's status as a REIT; environmental uncertainties and risks related to natural disasters; financial market fluctuations; changes in foreign currency exchange rates; risks of operating in foreign markets; and changes in 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 United States Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2007 and the Company's quarterly reports on Form 10-Q for the quarters ended March 31, 2008, June 30, 2008 and September 30, 2008. 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.
For Additional Information: A. William Stein Pamela A. Matthews Chief Financial Officer and Investor/Analyst Information Chief Investment Officer Digital Realty Trust, Inc. Digital Realty Trust, Inc. +1-415-738-6500 +1-415-738-6500 Bernard Geoghegan Senior Vice President International Operations Digital Realty Trust, Inc. +353-1-2450650
A. William Stein, Chief Financial Officer and Chief Investment Officer, +1-415-738-6500, or Pamela A. Matthews, Investor/Analyst Information, +1-415-738-6500, or Bernard Geoghegan, Senior Vice President, International Operations, +353 (1) 2450650, all of Digital Realty Trust, Inc.