Accelerates expansion in Japan with leading global cloud service provider Second Osaka data centre under construction, scheduled to open mid-2019
Digital Realty (NYSE: DLR), a leading global provider of data centre, colocation and interconnection solutions, announced today a multi-megawatt, multi-year agreement with a leading global cloud service provider for capacity at its new Digital Osaka 2 Data Centre. The new facility is currently under construction and is scheduled to open in mid-2019, further expanding the Digital Osaka connected campus.
The four-story facility will be reinforced with seismic isolation systems, will span over 23,000 square metres, and is expected to deliver up to 28 megawatts of total IT capacity. The new data centre will be connected via dark fibre to the previous and subsequent phases of the Digital Osaka connected campus, bringing together critical data centre, network, cloud and connectivity providers under a single, secure environment.
"We are pleased to support the global growth of a leading cloud provider at our new Digital Osaka 2 facility," said Digital Realty Chief Executive Officer A. William Stein. "Our Osaka connected campus will serve the needs of our global and regional clients seeking critical infrastructure solutions, offering close proximity to clouds and networks, seamless interconnection to our growing ecosystem, and scalability in terms of space, power and bandwidth to meet their current and future needs. Osaka contributes nearly JP38 trillion (approximately $352 billion) annually to the Japanese economy, and we are well-positioned to support our customers' data centre requirements in this thriving economic region."
Japan's highly advanced technology sector is expected to experience rapid growth over the next several years. The development of the Digital Osaka 2 facility will enhance Digital Realty's ability to meet the growing customer demand for comprehensive data centre and colocation solutions in Japan. The next-generation facility demonstrates Digital Realty's long-term commitment to the Japanese market and builds upon the success of Digital Osaka 1, which was fully leased prior to its grand opening in May 2017.
"Our new Osaka facility represents another milestone in our expansion across the Asia Pacific region and provides us with flexibility to meet the growing business demands of our global customers in Japan," said Krupal Raval, Chief Financial Officer, Asia Pacific for Digital Realty. "The significant pre-leasing momentum we have enjoyed on both phases in Osaka is a strong testament to the power of our global platform. Our unique connected campus model helps customers mitigate risk at every phase of the IT journey by reducing the complexity of hybrid cloud adoption and scalability-related challenges. As a result, customers are able to focus exclusively on innovation, advancement and improving their workload efficiency."
About Digital Realty
Digital Realty supports the data centre, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centres 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. For more information visit http://www.digitalrealty.asia also follow us on Twitter at @digitalapac and read our APAC blogs at https://www.digitalrealty.asia/insights.
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 new signing and construction at Digital Osaka 2 (KIX11) data centre site and the expected benefits and timeline for the KIX11 development. These risks and uncertainties include, among others, the following: reduced demand for data centres or decreases in information technology spending; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data centre space; the suitability of our data centres and data centre 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 centre space that we lease or sublease from third parties; difficulty acquiring or operating properties in foreign jurisdictions; 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, 2017, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2018, June 30, 2018 and September 30, 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
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