Digital Realty's third facility in Singapore highlights continuing market penetration and strong secular demand
SINGAPORE, Jan. 30, 2019 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of data centre, colocation and interconnection solutions, announced today the acquisition of land on a long-term ground lease to develop Digital Loyang II (SIN12) data centre in Singapore, the company's third facility in the high-growth market.
The acquired land parcel totals 12,800 square metres and is adjacent to Digital Realty's second Singapore facility – Digital Loyang I (SIN11), located at Loyang Drive on the east side of Singapore. The new Digital Loyang II (SIN12) Singapore data centre is expected to be fully operational by the third quarter of 2020, marking a significant expansion and further development of the Digital Realty Loyang connected campus.
Trusted foundation to power current and future customers' digital ambitions
The new data centre in Loyang Drive will be located less than 25 kilometres from Singapore's central business district and will provide up to 50 megawatts (MW) of critical power capacity to regional and global customers. The multi-story facility will offer a total footprint of 34,000 square metres and will ultimately broaden opportunities for more international companies to expand their core digital assets into the key Singapore market.
Both the existing SIN11 and planned SIN12 facilities are strategically located close to the Changi North Cable landing station, a key sub-sea internet landing station for the region. Digital Realty already enjoys a relationship with Singapore Internet Exchange (SGIX) to provide local peering at Digital Realty's Singapore data centre facilities in Jurong West (SIN10) and Loyang East (SIN11). Customers in both facilities benefit from this relationship through greater and more cost-effective connectivity options. These peering points on both ends of the island enhance the overall resiliency of the peering solution ecosystem in Singapore.
"Digital transformation is set to contribute US$10 billion to Singapore's gross domestic product (GDP) by 2021," said Mark Smith, Managing Director APAC for Digital Realty. "With leading global technology companies increasingly looking to expand their digital footprint in Singapore, there is a significant opportunity for leading infrastructure providers like Digital Realty to provide the trusted foundation for the nation's technology landscape. Our customers are constantly investing in digital services to transform their businesses, and we remain committed to supporting them through these transformations."
"By leveraging Digital Realty's global ecosystem, SIN12 customers will have access to a carrier-neutral operating environment, consisting of a world-class range of telco providers, service providers and business partners. The increased speed and connectivity of the global Digital Realty platform aims to provide low latency and highly reliable uptime for our customers," added Mr. Smith.
Reinforcing Singapore as a key global interconnected hub
Data centres represent the backbone of the IT sector and remain crucial to achieving Singapore's ambition to become a fully digital economy and support the rapid digital transformation of Southeast Asia. Singapore's connectivity to major markets in the region, strong network infrastructure, conducive business environment and political stability are among of the top reasons international and local operators continue to seek data centre growth in the region.
"We are excited to expand our platform in Singapore and to continue building upon our relationships and ecosystem in this core financial and colocation hub," said Digital Realty Chief Executive Officer A. William Stein. "With the addition of SIN12 to our Loyang connected campus, customers will soon have new ways to connect, extend their reach and find new business opportunities through our global data centre platform. Singapore has traditionally been a key hub for our global footprint, and given its robust existing infrastructure and strong support for digital transformation, it remains a leading destination for customers from around the world," added Mr. Stein.
The construction and management of a data centre will also provide a wide array of job opportunities from development to the ongoing operations of the future facility. As economic magnets, data centres have often been able to create significant opportunities and returns on investment for their customers, owners and countries in which they operate.
Prioritizing a sustainable digital ecosystem
Sustainability is a critical feature of the design and construction of the new SIN12 data centre. Digital Realty expects to pursue BCA Green Mark certification for the new facility, demonstrating the company's commitment to industry-leading sustainable design standards and building upon the established track record of its award-winning Digital Jurong West (SIN10) and Digital Loyang I (SIN11) facilities. The new facility is expected to use indirect evaporative cooling to reduce power usage effectiveness (PUE) to between 1.2 to 1.3, with the goal of achieving the most competitive PUE for a commercial data centre in Singapore. Efficient cooling system design and controls aim to minimize evaporation losses, which will improve water-use efficiency to well below the average rating for data centres in Singapore. These sustainable design features are expected to generate significant benefits such as reduced pollution, noise attenuation and an increase in overall space optimization, all of which can be critical factors when developing on the island city-state.
Digital Realty remains one of the world's largest owners, developers and operators of data centres. Digital Realty is a leader in the design, construction and operation of highly reliable data centre facilities around the world. The company achieved five nines of uptime for the 11th consecutive year during 2018, surpassing 1.45 billion of operating minutes across nearly 200 data centres worldwide. The new Singapore data centre will adopt "Secure by Design" principles, offering its customers a highly secure location, one that is ready to meet the increasing demand for reliable and secure infrastructure. Digital's experienced global design and construction team, quality control process, exceptional operational global standards and unparalleled access to funding makes it one of the most secure, trusted and leading critical infrastructure providers in the world.
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, 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. For more information about data centre solutions from Digital Realty, visit www.digitalrealty.asia, follow us on Twitter at @digitalapac and visit our industry insights at https://www.digitalrealty.com/insights/blog.
For Additional Information
Andrew P. Power
Chief Financial Officer
Digital Realty
(415) 738-6500
Media Inquiries
Omer M. Wilson
Senior Director of Marketing
Asia Pacific
Digital Realty
owilson@digitalrealty.com
+65 6505 3951
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: our purchase of land plots and associated construction, expected timing and benefits of a new Digital Loyang II (SIN12) data centre in Singapore. 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; 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.
