Digital Realty Announces Results of Annual North American Data Center Demand Survey

SAN FRANCISCO, March 12, 2012 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global data center solutions provider, has released key findings from its annual study of the North American data center market. The research was conducted by Campos Research & Analysis, which surveyed senior decision makers at large corporations in North America who are responsible for shaping their companies' data center strategies.

The following highlights from the survey indicate increased growth for the data center industry in 2012 and 2013:

• 92 percent of respondents will definitely or probably expand in 2012—the highest percentage in the six years that Digital Realty has sponsored the survey.
• By comparison, 70 percent of respondents reported having built or acquired a data center project in the previous 24 months, indicating increased demand for data center space in 2012 - 2013.
• Of those respondents with definite plans to expand in 2012,
  • 38 percent expect to expand in three or more locations.
  • 54 percent expect to pursue projects of 15,000 square feet or more in size.
  • 49 percent expect their data center projects to be supported by at least 2 MW of electrical power, including 12 percent reporting data center projects that will have 5 MW or more of electrical power, illustrating the significant scale of projects being planned in 2012.
• Of those companies planning or considering data center projects this year, 92 percent plan to expand in the U.S., approximately 50 percent also expect to expand in Europe or the Asia Pacific region, and 21 percent reported plans for projects in South America.
• 4 percent of companies reported having no plans for data center expansion in 2012 or 2013.

"This is our sixth annual study of the North American data center industry. These results are consistent with what we are seeing with our customers across our portfolio," said Michael F. Foust, Chief Executive Officer of Digital Realty. "There are a number of factors that we believe are driving the increase in demand for data center space as reported in the survey.  These include the continued adoption of public, private and hybrid cloud computing solutions, pent up demand from enterprise customers that had deferred expansion plans in previous years due to economic uncertainty, an improved economic outlook, and the proliferation of data requiring appropriate computing and storage environments."

Other findings from the study include the following:

• Of those respondents with definite plans to expand in 2012,
• 78 percent say they intend to use a partner (wholesale data center provider or design/build partner) for one or all of their projects.
• 41 percent reported plans to use a containerized module as part of their expansion.
• The most frequently cited locations for new or expanded data center in the U.S. are New York City/NJ, Chicago, Los Angeles, Dallas, San Francisco Bay Area and Phoenix (in order of ranking).
• Hong Kong and Tokyo were mentioned more frequently this year than in past years as locations for international projects. London also continued to be a desirable location for overseas projects.
• 45 percent of respondents expect to finance their projects with both capital and operating budgets.
  • 24 percent will use their capital budget only.
  • 30 percent will use their operating budget only.
• Respondents reported an expected increase averaging 7 percent in their IT budgets for 2012.
• In terms of technical specifications, 82 percent of respondents expect server density in their facilities to increase in 2012.
• Maximum power across respondents' data centers averaged 9.0kW per rack.
  • 35 percent reported a maximum of 10kW or more per rack.
• 89 percent of respondents are aware of their data center PUE rating, which averaged 2.8.
  • 19 percent reported a PUE of less than 2.0.
• 87 percent of respondents are now measuring power usage with metering equipment and 84 percent currently use DCIM software.

"In addition to this study of the North American data center market, we also recently published the results of our latest study of trends in the European market, as well as a new study of the Asia-Pacific market based on a large-scale survey of large enterprises in Australia, Singapore and Hong Kong," added Mr. Foust.

For more information about the European and Asia-Pacific studies, please visit www.digitalrealty.com.    

About the Methodology
Results of this study are based on surveys of 300 IT decision makers at large corporations in North America with annual revenues of at least $1.0 billion and/or at least 5,000 employees. All survey participants are directly involved in the process of managing, implementing or expanding existing data centers. All participants were senior level executives or management, including CxOs, in IT, MIS, IS or Finance. The survey was conducted in January 2012.

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 center solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data center 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 102 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 19.1 million square feet as of February 27, 2012, including 2.4 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 31 markets throughout Europe, North America, Singapore 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 http://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 survey results, demand for data center space, growth for the data center industry in 2012 and 2013, the data center expansion plans of other companies, power capacity, usage and monitoring, PUE levels, expectations regarding the survey respondents' demand for data center space, reasons for data center expansion, data center growth locations, financing and the use of partners in data center projects. 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 redeveloped properties; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development or redevelopment of properties; decreased rental rates or increased vacancy rates; increased competition or available supply of data center space; our inability to successfully develop and lease new properties and space held for redevelopment; 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, 2011.  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.

SOURCE Digital Realty Trust, Inc.

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