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Digital Realty Announces Results Of Annual European Data Centre Demand Survey

Independent study commissioned by Digital Realty indicates continued growth driven by industry demand for improved security and disaster recovery preparedness

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LONDON, April 15, 2013 /PRNewswire/ --Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data centre solutions, has released key findings from its annual study of the European data centre market. The research was conducted on behalf of Digital Realty by Campos Research & Analysis, an independent research firm.

The survey of senior leadership at large corporations in Europe revealed the following data centre growth trends:

  • A strong majority of respondents, 88 percent, indicate that they will definitely or probably expand their data centres in either 2013 or 2014;
  • 25 percent of respondents indicate that they will definitely expand in 2013, compared to 22 percent a year ago;
  • The main reasons given for data centre expansion are, in order of importance, the need for security, disaster recovery, and power issues (the supply/reliability of power, and maintaining efficiency);
  • The trend is towards slightly more compact data centres, with an average size requirement of 14,100 square feet (1,300 square metres), compared to 15,600 square feet (1,500 square metres) a year ago;     
  • Data centre planning revolves around two power concerns: the supply and reliability of power, and maintaining efficiency to minimize the power requirements of the data centre;
  • Demand for new data centres is highest among businesses in the UK;
  • Established business centres remain the most popular locations for situating a new data centre, with London (29 percent), Paris (24 percent) and Frankfurt (21 percent) the top choices.

Commenting on the Campos survey findings, Bernard Geoghegan, Digital Realty managing director, Europe, said, "Despite the influence of continuing economic uncertainty in Europe, demand for data centre space remains strong. It seems to suggest that adapting to these conditions and readying the organisations for a return of   improved economic conditions can be well served through IT and the data centre. Security and disaster recovery requirements remain at the forefront, particularly in light of recent global events, so it is critical for suppliers to demonstrate a strong pedigree in being able to deliver appropriate solutions."

The research report Multi-Tenant Datacenter Global Providers, published in November 2012 by 451 Research, a division of global analyst and data company The 451 Group, points to strong data centre growth trends in EMEA. According to 451 Research, the four-year compound annual growth rate (CAGR) for multi-tenant data centre revenue in EMEA through 2014 is expected to be 18 percent.

The Campos survey respondents indicate a preference for locating new data centres in their own countries, however, they do not rule out North America and APAC as possible locations.

  • For over two-thirds (68 percent) of respondents, the priority is to add facilities within their own country;
  • Just under half of organisations surveyed (46 percent) intend to spread this expansion across at least two sites;
  • The most important factors cited in choosing a data centre site were security and connectivity;
  • London, Paris, Frankfurt and New York were mentioned often as potential sites; Chicago and the San Francisco Bay Area were mentioned occasionally; in APAC, Tokyo, Mumbai, Singapore and Hong Kong were mentioned.

For Further Information
A summary of the Campos Research & Analysis survey results can be found at the company's Knowledge Center at www.digitalrealty.com via the "Thought Leadership" dropdown menu.

About the Methodology
Research was commissioned by Digital Realty and carried out independently by Campos. 201 respondents participated from large companies with annual revenues of at least €500M/£500M and/or at least 2,000 employees (for Ireland and Netherlands, €250M/£250M and/or at least 1,000 employees) and located in the UK, France, Germany, Netherlands, Spain or Ireland. Participants are responsible for managing a data centre, contract execution for or implementing a new data centre or expanding existing data centres within their organisation. The survey was conducted in January 2013.

About Campos Research & Analysis
Campos Research & Analysis conducts consumer research and business-to-business research, using qualitative and quantitative methodologies, to address the business issues of client companies. Campos Research & 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 
Digital Realty Trust, Inc. focuses on delivering customer driven data centre solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data centre needs. Digital Realty's customers include domestic and international companies across multiple industry verticals ranging from information technology and Internet enterprises, to manufacturing and financial services. Digital Realty's 121 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 22.7 million square feet as of April 3, 2013, including 2.4 million square feet of space held for development. Digital Realty's portfolio is located in 32 markets throughout Europe, North America, Asia and Australia. Additional information about Digital Realty is included in the Company Overview, which is available on the Investors page of Digital Realty's website at www.digitalrealty.com.

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 results of our annual European data centre demand survey, expected continued growth of data centre demand in Europe and EMEA, the factors driving such demand, the data centre expansion plans of other companies, expectations regarding the survey respondents' demand for data centre space, reasons for data centre expansion, data centre growth locations and projected multi-tenant data centre revenue growth in EMEA. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions, including the downgrade of the U.S. government's credit rating; current local economic conditions in our geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; 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); our dependence upon significant tenants; bankruptcy or insolvency of a major tenant or a significant number of smaller tenants; defaults on or non-renewal of leases by tenants; our failure to obtain necessary debt and equity financing; increased interest rates and operating costs; 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; financial market fluctuations; changes in foreign currency exchange rates; our inability to manage our growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; our failure to successfully integrate and operate acquired or developed properties or businesses; the suitability of our properties and data centre infrastructure, delays or disruptions in connectivity, failure of our physical infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data centre space; our inability to successfully develop and lease new properties and space held for development; difficulties in identifying properties to acquire and completing acquisitions; our inability to acquire off-market properties; our inability to comply with the rules and regulations applicable to reporting companies; our failure to maintain our status as a REIT; possible adverse changes to tax laws; restrictions on our ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of our insurance coverage; changes in foreign laws and regulations, including those related to taxation and real estate ownership and operation; and changes in local, state and federal regulatory requirements, including 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 U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2012.  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 M. Garibaldi

Bernard Geoghegan

Chief Financial Officer and

Vice President, Investor Relations and

Managing Director, EMEA

Chief Investment Officer

Corporate Marketing

Digital Realty Trust, Inc.

Digital Realty Trust,Inc.

Digital Realty Trust, Inc.

+44 (20) 7954 9128

+1 (415) 738-6500

+1 (415) 738-6500





Media Inquiries:

pr@digitalrealty.com


 

SOURCE Digital Realty Trust, Inc.



RELATED LINKS
http://www.digitalrealtytrust.com

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