Strengthens Growing Presence in Top-Tier Global Data Center Market
SAN FRANCISCO, March 4, 2019 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today that MC Digital Realty, a 50/50 joint venture between Mitsubishi Corporation and Digital Realty, has reached an agreement to acquire a five-acre land parcel in Tokyo. The site is located at the center of the Inzai data center cluster, one of highest-density areas in Japan with well-established utility and connectivity infrastructure, and home to leading global cloud providers and financial institutions. Demolition of the existing structure on the site will begin immediately after closing and data center development is expected to commence in 2020, subject to planning approvals. The initial facility is expected to deliver up to 35.6 megawatts of total IT capacity.
"We are pleased to be procuring land through MC Digital Realty to power our customers' digital ambitions in Japan, with state-of-the-art future capacity in Tokyo, a longtime target market and one of the top financial and technology hubs in the Asia Pacific region," said Digital Realty Chief Executive Officer A. William Stein. "Public cloud growth, surging demand for data center solutions and a mature technology infrastructure market make Japan a highly attractive market poised for rapid growth over the next several years. This milestone will enable us to continue executing upon our mission of providing our customers the trusted foundation for the digital world."
Mark Smith, Digital Realty Managing Director, Asia Pacific, added, "Tokyo is one of the most important data center markets in the world. This transaction will provide us with a solid foundation for our next phase of growth in Japan, enabling us to continue to support years of customer expansion, while broadening our positive impact on the local economy."
In the Asia Pacific region, Digital Realty operates a network of industry-leading data centers located in Singapore, Hong Kong, Osaka, Melbourne and Sydney. The Tokyo land parcel acquisition builds upon Digital Realty's investment in and commitment to Japan. MC Digital Realty provides clients in Japan a secure, globally connected and efficiently run platform for hosting their digital assets, combining the technical and Japanese pedigree of Mitsubishi Corporation with Digital Realty's global data center leadership and expertise. The Tokyo land parcel acquisition is expected to close later this year and is subject to customary closing conditions.
About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers 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. www.digitalrealty.com
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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 (NRT10), our joint venture with Mitsubishi Corporation and the expected data center demand in Japan. 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. 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.
