MC Digital Realty To Acquire Additional Land In Tokyo To Develop 120-Megawatt Connected Campus
SAN FRANCISCO, Sept. 30, 2019 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today it has signed an agreement to acquire an additional plot of land in Tokyo. MC Digital Realty expects to close on the acquisition in the first quarter of 2020. The new site is strategically located in Greater Tokyo's Inzai data center cluster, in close proximity to the five-acre parcel MC Digital Realty acquired earlier this year, likewise located in the Inzai data center cluster and expected to support the development of a 38-megawatt facility (NRT10).
Under MC Digital Realty's Tokyo Connected Campus @ Inzai development roadmap, the first building to be constructed on the new land parcel will be a 36-megawatt facility (NRT11), followed by a 30-megawatt facility (NRT12) and an 18-megawatt facility (NRT13), each subject to customer demand. The two parcels will be combined to construct a connected campus, expected to deliver more than 120 megawatts of total IT capacity for global and regional customers. The combination of the two parcels further solidifies MC Digital Realty's presence in the Inzai data center cluster, one of the highest density areas in Japan, with well-established utility and connectivity infrastructure and home to many leading global cloud providers and financial institutions.
"Japan is a high-priority market for our customers, and we're excited to be expanding our footprint in the country," said Digital Realty Chief Executive Officer A. William Stein. "The acquisition of additional land in Tokyo will not only enable us to meet the region's growth in cloud adoption and need for low-latency infrastructure for new technologies such as AI and 5G but will also bring the benefits of our connected campus model to accelerate the business growth of our local customers."
"Tokyo is home to a number of leading local and international organizations and remains one of the key data center markets within the Asia Pacific region and around the world," added Mark Smith, Managing Director, Asia Pacific, Digital Realty. "We look forward to strengthening our presence in Tokyo to further serve Japan's growing digital economy."
About MC Digital Realty
MC Digital Realty is a 50/50 joint venture between Mitsubishi Corporation and Digital Realty formed in 2017. MC Digital Realty provides clients in Japan a secure, globally connected and efficient platform to host their digital assets, combining Mitsubishi Corporation's local enterprise expertise with Digital Realty's global data center leadership and operational excellence.
About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,000 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Latin America, 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.asia. Follow Digital Realty on social media: LinkedIn, Twitter, Facebook, Instagram and YouTube.
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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 (NRT11), our joint venture with Mitsubishi Corporation, the expected data center demand in Japan and our plans and expectations in the Asia Pacific region. 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 and Quarterly Report on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019. 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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