SAN FRANCISCO and LONDON, Nov. 7 /PRNewswire-FirstCall/ -- Digital Realty
Trust, Inc. (NYSE: DLR), a leading owner and manager of corporate datacentres
and Internet gateways, is reporting new research data focused on the leading
datacentre trends in the European market. The release of this data follows the
publication of a similar study of the U.S. datacentre market earlier in 2007.
This new European study is based on a recent poll of senior decision makers
who are either directly responsible for datacentres or influence significant
decisions related to datacentre operations at large European companies. The
research was conducted for Digital Realty Trust by the respected research firm
Campos Research & Analysis, the same firm that conducted the earlier study of
datacentre-related initiatives in the U.S. The surveyed companies come from a
wide range of industries, including financial services, manufacturing,
professional services, packaged consumer goods, telecommunications, consumer
services and information technology.
Key findings from the research study and additional data points are
-- More than 80 percent of respondents have plans to expand their
- 18 percent plan to expand their datacentre in the very near term
(within the next 12 months).
- 67 percent plan to expand their datacentres within the next 24
- 15 percent of respondents are in the planning stages for datacentre
expansion that will happen more than 24 months from now.
- Of the study participants who are planning datacentre expansions, 79
percent plan to expand in two or more locations, indicating that
these expansions will be complex, multi-site datacentre initiatives.
- The average size of the planned expansions is approximately 1,000
square metres (10,000 square feet).
-- Disaster recovery initiatives were cited as the leading reason for
expansions, but the need for additional network connectivity,
upgraded cooling, more raised floor area, additional power, and new
applications were also cited as key drivers for expansion plans.
-- Respondents identified the following cities as their most preferred
cities for the location of their datacentre expansions (in order of
- New York
-- Nearly 60 percent of companies have developed a green strategy for
their datacentres that will impact their future datacentre decisions.
-- 74 percent of companies expect virtualization to reduce their space
requirements, but they estimate this reduction to be 20 percent or
"Similar to our survey of the U.S. market earlier this year, this study of
European datacentre initiatives paints a robust picture of the datacentre
market: broad-based demand for datacentre space from a wide variety of
industries, with strong growth prospects based on the project timelines
looking out two years and beyond. The findings revealed that demand was even
stronger than our own estimates; it is remarkable to see that in both Europe
and the U.S. more than 80 percent of companies are planning datacentre
expansions," said Michael F. Foust, CEO of Digital Realty Trust.
Mr. Foust added, "One thing that is very clear from this European study
and the earlier U.S. study is that datacentres are core to the operating
infrastructure for companies today. Datacentres are no longer simply a closet
full of servers that only the IT team worries about; datacentres are critical
assets that the executive team and Board of Directors have as one of the key
issues on their radar screen."
"This second phase of our study is important because it puts the data into
a global perspective, and confirms that the market can expect to see sustained
demand for datacentre space throughout Europe and in the U.S. as companies
implement their datacentre plans," said Chris Crosby, Senior Vice President of
Digital Realty Trust. "This study also underscored that we are focused on the
right markets, with cities like London, Paris, Amsterdam and New York clearly
being locations where European companies want to expand. Each of these markets
has limited supplies of quality datacentre space, and Digital Realty Trust is
well-positioned to serve that growing demand with our portfolio of world-class
facilities in each of those markets."
A number of additional findings from the research study are as follows:
-- Approximately 17 percent of companies have no redundancy for their
electrical and cooling equipment in their current datacentres.
- Only half of companies have dedicated backups (2N) for their critical
-- Three quarters of all respondents are planning to expand to datacentres
with between approximately 500 and 2500 square metres (5,000-25,000
square feet) of raised floor space.
-- When study participants were asked to rate the importance of several
factors in selecting a geographic location for their datacentres,
security was ranked as the most important criterion followed by
accessibility for company personnel, telecom availability and power
-- Three out of every five respondents plan to use a partner to implement
their expansion plans. Only 21 percent are planning to implement the
Mr. Crosby also commented, "One interesting difference between the results
of the U.S. and European studies is the leading reason behind these
expansions. In Europe, disaster recovery is far and away the primary reason
that companies cited for their expansion plans, while in the United States the
deployment of new applications was the lead reason. The difference suggests
that while demand will be strong in both markets, companies in the EU and the
United States will be approaching their projects with very different mindsets
and datacentre needs -- an important distinction when responding to customers.
Another interesting difference is that a smaller percentage of European
companies are planning immediate expansions in the next 12 months (17 percent
in Europe vs. 34 percent in the U.S.), but the percentages are nearly
identical when you look out to 24 months. This confirms our belief that the
European market is about 18 months behind the U.S. in its adoption of new
Digital Realty Trust will present the full findings of this research study
at the Datacentre Dynamics London event on November 12-13, 2007. For more
information about this event, visit http://www.datacentredynamics.com.
About the Methodology
Metrics reported in this study are based on Web-based surveys of IT
decisionmakers at large corporations in five European countries: the U.K.,
Germany, France, the Netherlands and Ireland. All surveyed companies in the
U.K., Germany and France have annual revenues of at least euro 1 billion
and/or at least 5000+ employees. Due to the smaller sample size of companies
in Ireland and the Netherlands that meet those criteria, surveyed companies in
those two countries have minimum annual revenue of euro 100 million. All
survey participants are directly involved in the process of managing corporate
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 September 2007 and the sample size was
About Digital Realty Trust, Inc.
Digital Realty Trust, Inc. owns, acquires, develops, redevelops and
manages technology-related real estate. The Company is focused on providing
Turn-Key Datacentre(TM) and Powered Base Building(TM) datacentre 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 67 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 datacentre tenants.
Comprising approximately 12.0 million rentable square feet, including 1.7
million square feet of space held for redevelopment, Digital Realty Trust's
portfolio is located in 26 markets throughout North America and Europe. For
additional information, please visit Digital Realty Trust's website at
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. Such forward looking statements include statements related to the
survey data obtained and growth in the European datacentre markets, survey
respondent's expansion plans and related statements, respondent's green
strategies, expected impacts of virtualization. These risks and uncertainties
include adverse economic or real estate developments in the Company's markets
or the technology industry; general economic conditions; defaults on or
non-renewal of leases by tenants; increased interest rates and operating
costs; inability to manage domestic and international growth effectively;
failure to obtain necessary outside financing; decreased rental rates or
increased vacancy rates; difficulties in identifying properties to acquire and
completing acquisitions at acceptable return levels; failure to successfully
operate acquired properties and operations; failure of acquired properties to
perform as expected; failure to successfully redevelop properties acquired for
such purposes or unexpected costs related thereto; 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, or SEC, including the Company's annual report on Form 10-
K for the year ended December 31, 2006, as updated by subsequent reports on
Form 10-Q and Form 8-K filed with the SEC. 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
Chief Financial Officer and
Chief Investment Officer
Digital Realty Trust, Inc.
Pamela A. Matthews
Digital Realty Trust, Inc.
Sales & Technical Operations
Digital Realty Trust, Inc.
SOURCE Digital Realty Trust, Inc.