SAN FRANCISCO, March 4, 2019 /PRNewswire/ -- Digital Realty
(NYSE: DLR), a leading global provider of data center, colocation
and interconnection solutions, announced today that MC Digital
Realty, a 50/50 joint venture between Mitsubishi Corporation and
Digital Realty, has reached an agreement to acquire a five-acre
land parcel in Tokyo. The
site is located at the center of the Inzai data center cluster, one
of highest-density areas in Japan
with well-established utility and connectivity infrastructure, and
home to leading global cloud providers and financial institutions.
Demolition of the existing structure on the site will begin
immediately after closing and data center development is expected
to commence in 2020, subject to planning approvals. The
initial facility is expected to deliver up to 35.6 megawatts of
total IT capacity.
"We are pleased to be procuring land through MC Digital Realty
to power our customers' digital ambitions in Japan, with state-of-the-art future capacity
in Tokyo, a longtime target market
and one of the top financial and technology hubs in the
Asia Pacific region," said Digital
Realty Chief Executive Officer A. William
Stein. "Public cloud growth, surging demand for data
center solutions and a mature technology infrastructure market make
Japan a highly attractive market
poised for rapid growth over the next several years. This
milestone will enable us to continue executing upon our mission of
providing our customers the trusted foundation for the digital
world."
Mark Smith, Digital Realty
Managing Director, Asia Pacific,
added, "Tokyo is one of the most
important data center markets in the world. This transaction
will provide us with a solid foundation for our next phase of
growth in Japan, enabling us to
continue to support years of customer expansion, while broadening
our positive impact on the local economy."
In the Asia Pacific region,
Digital Realty operates a network of industry-leading data centers
located in Singapore, Hong Kong, Osaka, Melbourne and Sydney. The Tokyo land parcel
acquisition builds upon Digital Realty's investment in and
commitment to Japan. MC Digital Realty provides clients in
Japan a secure, globally connected
and efficiently run platform for hosting their digital assets,
combining the technical and Japanese pedigree of Mitsubishi
Corporation with Digital Realty's global data center leadership and
expertise. The Tokyo land
parcel acquisition is expected to close later this year and is
subject to customary closing conditions.
About Digital Realty
Digital Realty supports the data
center, colocation and interconnection strategies of more than
2,300 firms across its secure, network-rich portfolio of data
centers located throughout North
America, Europe,
Asia and Australia. Digital
Realty's clients include domestic and international companies of
all sizes, ranging from cloud and information technology services,
communications and social networking to financial services,
manufacturing, energy, healthcare, and consumer products.
www.digitalrealty.com
For Additional Information
Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738-6500
Investor Relations
John J.
Stewart / Maria S. Lukens
Digital Realty
(415) 738-6500
investorrelations@digitalrealty.com
Media Inquiries
John
Christiansen / Scott
Lindlaw
Sard Verbinnen & Co.
(415) 618-8750
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 expected timing and benefits
developing our data center campus in Tokyo (NRT10), our joint venture with
Mitsubishi Corporation and the expected data center demand in
Japan. These risks and uncertainties include, among others,
the following: reduced demand for data centers or decreases
in information technology spending; decreased rental rates,
increased operating costs or increased vacancy rates; increased
competition or available supply of data center space; the
suitability of our data centers and data center infrastructure,
delays or disruptions in connectivity or availability of power, or
failures or breaches of our physical and information security
infrastructure or services; our dependence upon significant
customers, bankruptcy or insolvency of a major customer or a
significant number of smaller customers, or defaults on or
non-renewal of leases by customers; breaches of our obligations or
restrictions under our contracts with our customers; our inability
to successfully develop and lease new properties and development
space, and delays or unexpected costs in development of properties;
the impact of current global and local economic, credit and market
conditions; our inability to retain data center space that we lease
or sublease from third parties; difficulties managing an
international business and acquiring or operating properties in
foreign jurisdictions and unfamiliar metropolitan areas; our
failure to realize the intended benefits from, or disruptions to
our plans and operations or unknown or contingent liabilities
related to, our recent acquisitions; our failure to successfully
integrate and operate acquired or developed properties or
businesses; difficulties in identifying properties to acquire and
completing acquisitions; risks related to joint venture
investments, including as a result of our lack of control of such
investments; 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; our failure to obtain necessary
debt and equity financing, and our dependence on external sources
of capital; financial market fluctuations and changes in foreign
currency exchange rates; 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 and goodwill and other intangible asset
impairment charges; our inability to manage our growth effectively;
losses in excess of our insurance coverage; environmental
liabilities and risks related to natural disasters; our inability
to comply with rules and regulations applicable to our Company; our
failure to maintain our status as a REIT for federal income tax
purposes; our operating partnership's failure to qualify as a
partnership for federal income tax purposes; restrictions on our
ability to engage in certain business activities; and changes in
local, state, federal and international laws and regulations,
including related to taxation, 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,
2018. 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.
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SOURCE Digital Realty