Research Shows Data Centres Remain a Corporate Priority, With 80% of Firms Planning Expansion
By Digital Realty Trust Inc., PRNEWednesday, March 10, 2010
Research commissioned by Digital Realty Trust shows that in 2010, companies will increase their data centre floor space and expand into new locations as the European economy stabilises
DUBLIN, March 11, 2010 - Digital Realty Trust, Inc. (NYSE: DLR), the world's largest wholesale
data centre provider, announced the results of a new study which shows that
the majority of European companies are placing data centre expansion firmly
on the corporate agenda in 2010. The research addressed large enterprises
from France, Germany, Spain, the UK and Ireland, and reveals that data
centres have remained a priority for organisations despite the challenging
economy.
Key findings of the new study include: - Four out of five companies (80 percent) surveyed are planning data centre expansions within the next year. - Almost two thirds (62 percent) of companies have built a new data centre in the past 24 months. - French companies have shown the broadest commitment to expansion, with nine out of ten (90 percent) planning to grow their data centres in 2010. In terms of immediate and definite expansion, German and UK/Irish companies showed the greatest commitment, with definite plans for 2010 growth reported by 30 percent and 29 percent of respondents, respectively. - The largest enterprises (those with annual revenues of euro 20B+) showed the greatest commitment to expansion plans. 43 percent of companies in this category will definitely grow their data centres in 2010.
"After a turbulent year for many European businesses, a remarkably high
proportion of them are planning data centre expansion projects in 2010. Even
with the challenge posed by limited capital expenditure budgets, companies
are treating data centre expansion as a necessity," said Bernard Geoghegan,
Senior Vice President at Digital Realty Trust who oversees International
Operations. "Our customers are reporting a pressing need to enlarge their
data centres, which are recognised as business-critical assets which support
plans for both recovery and future growth."
Other findings of note in the new study include: - Four in five (79 percent) respondents who plan to expand in 2010 say they will use a partner to implement their expansion plans. - Nearly half (49 percent) of European companies plan to expand their data centres in two or more locations, and 43 percent are looking to establish a data centre in a new location. - The most popular cities in which to site a new data centre are London (29 percent), Paris (21 percent) and Frankfurt (19 percent), consistent with the results of last year's survey. - On average, companies are seeking 1,400 square metres (15,100 square feet) of raised floor for their expanded data centres. Respondents from UK/Ireland are seeking the largest data centres, with ambitions for 1,580 square metres (17,000 square feet), while space requirements are lower in France (1,230 square metres (13,200 square feet)) and Spain (1,240 square metres (13,400 square feet)).
"As we see in the 2010 survey data, London and Paris in particular
continue to see high demand for data centres. Each hosts European
headquarters for multinational corporations, both are well positioned to
address Western European markets, and consequently they are hubs for broader
economic investment. It is also clear that companies are seeking to expand in
multiple locations and establish facilities in new regions, suggesting that
the European data centre market will see new growth areas during the coming
years," Geoghegan added.
The study follows similar research released by Digital Realty Trust in
early 2009, and is based on a detailed survey of senior decision makers who
are either directly responsible for data centres or influence significant
decisions related to data centre operations within large European
organisations. The research was conducted by respected research firm Campos
Research and Analysis on behalf of Digital Realty Trust.
About the Methodology
Metrics reported in this study are based on Web-based surveys of IT
decision makers at large corporations in five European countries: the U.K.,
France, Germany, Spain and Ireland. All surveyed companies have annual
revenues of at least euro 650M/600M pounds Sterling or 2,000+ employees. All
survey participants are responsible for managing a datacentre, executing
contracts for or implementing a new datacentre or expanding existing
datacentres. The survey was conducted in January 2010.
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, Inc. owns, acquires, redevelops, develops and
manages technology-related real estate. The Company is focused on providing
Turn-Key Datacentre(R) and Powered Base Building(R) 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 84 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 1.4 million square metres (14.9 million
rentable square feet) as of February 25, 2010, including 170,000 square
metres (1.8 million square feet) of space held for redevelopment, Digital
Realty Trust's portfolio is located in 27 markets throughout North America
and Europe. For additional information, please visit Digital Realty Trust's
website at www.digitalrealtytrust.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. Such forward-looking statements include statements related to the
data centre expansion plans of other companies and expectations regarding
demand for data centre space, data centre growth amounts and areas and the
importance of data centre partners in corporate expansions. These risks and
uncertainties include, among others, the following: the impact of the ongoing
deterioration in global economic, credit and market conditions; 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); financial market
fluctuations; and changes in foreign currency exchange 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, 2009 and subsequent reports. 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 Bernard Geoghegan Chief Financial Officer Investor/Analyst SVP, International and Chief Investment Information Operations Officer Digital Realty Trust, Digital Realty Trust, Digital Realty Trust, Inc. Inc. Inc. +1-415-738-6500 +1-415-738-6500 +353-1-245-0650
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, SVP, International Operations, +353-1-245-0650, all of Digital Realty Trust, Inc.
Tags: Digital Realty Trust Inc., Dublin, March 11, Western Europe