Press release from PR Newswire
Digital Realty to Build Custom Data Center For NetApp
Monday, October 17, 2011
Digital Realty to Build Custom Data Center For NetApp07:30 EDT Monday, October 17, 2011Build-to-Suit Data Center Project in Portland, Oregon Metro Area to Support Expansion of NetApp's Global IT InfrastructureSAN FRANCISCO, Oct. 17, 2011 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a global provider of data center solutions, signed a long-term, Build-to-Suit agreement in the third quarter of 2011 with NetApp, Inc. (NASDAQ: NTAP) for a custom data center in Hillsboro, Oregon. NetApp is an industry leader in delivering innovative storage and data management solutions that help customers increase IT efficiency and flexibility to drive business success. In conjunction with the Build-to-Suit agreement, Digital Realty acquired a 5.1 acre development site in the Hillsboro Enterprise Zone's North Industrial Area with utility power and telecommunications services already in place. The new 55,000 square foot Build-to-Suit facility to be constructed on the site will include 18,250 SF of technical space with 4.5 megawatts of IT power capacity for high-performance computing. Construction of the facility will occur in multiple phases, with the first phase scheduled for completion in August 2012. "Our objective for this new facility was to obtain the most efficient and cost-effective data center possible, in the shortest time feasible," said Thom Bryant, vice president of Workplace Resources, NetApp. "Furthermore, NetApp already has a longstanding relationship with Oregon, and building this data center further strengthens our ongoing momentum and investment within the state.""Our Build-to-Suit data center solution meets the specialized technical requirements of customers such as NetApp, while providing the customer with all the control of a do-it-yourself facility, and without the risks associated with a large-scale, capital-intensive data center construction project," said Brent Behrman, Senior Vice President, Sales at Digital Realty. "We are very pleased to be partnering with NetApp on this important project. We look forward to delivering the facility, which will play a critical role in the growth of their business."The site for NetApp's new data center is located in Hillsboro's tech corridor along Evergreen Parkway in the city's North Industrial Area of the Hillsboro Enterprise Zone. The mild climate in northwest Oregon is ideal for airside economization, which uses outside air to cool the data center up to 10 months out of the year. "We are very pleased to welcome NetApp and Digital Realty to Hillsboro," said Hillsboro Mayor Jerry Willey. "Our infrastructure and attractive business environment have made Hillsboro the home to many well-known tech companies and their data centers." About NetAppNetApp (NASDAQ: NTAP) creates innovative storage and data management solutions that accelerate business breakthroughs and deliver outstanding cost efficiency. Discover NetApp's passion for helping companies around the world go further, faster at www.netapp.com.About Digital RealtyDigital 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 98 properties, excluding two properties held as investments in unconsolidated joint ventures, comprise approximately 17.3 million square feet as of October 6, 2011, including 2.2 million square feet of space held for redevelopment. Digital Realty's portfolio is located in 30 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.digitalrealtytrust.com.Safe Harbor StatementThis press release contains forward-looking statements which are based on Digital Realty Trust, Inc.'s 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 Build-to-Suit agreement with NetApp, plans for construction at the site, expected timing for completion of development plans, and expected size and IT capacity of the development. These risks and uncertainties include, among others, the following: the impact of the recent deterioration in global economic, credit and market conditions including the downgrading of the U.S. government's credit rating; current local economic conditions in its geographic markets; decreases in information technology spending, including as a result of economic slowdowns or recession; adverse economic or real estate developments in its industry or the industry sectors that it sells to (including risks relating to decreasing real estate valuations and impairment charges); its 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; its failure to obtain necessary debt and equity financing; increased interest rates and operating costs; risks associated with using debt to fund its business activities, including re-financing and interest rate risks, its failure to repay debt when due, adverse changes in its credit ratings or its breach of covenants or other terms contained in its loan facilities and agreements; financial market fluctuations; changes in foreign currency exchange rates; its inability to manage its growth effectively; difficulty acquiring or operating properties in foreign jurisdictions; its failure to successfully integrate and operate acquired or redeveloped properties; risks related to joint venture investments, including as a result of its 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; its inability to successfully develop and lease new properties and space held for redevelopment; difficulties in identifying properties to acquire and completing acquisitions; its inability to acquire off-market properties; its inability to comply with the rules and regulations applicable to reporting companies; its failure to maintain its status as a REIT; possible adverse changes to tax laws; restrictions on its ability to engage in certain business activities; environmental uncertainties and risks related to natural disasters; losses in excess of its 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 Digital Realty Trust, Inc. with the U.S. Securities and Exchange Commission, including Digital Realty Trust, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2010 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2011 and June 30, 2011. Digital Realty Trust, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. NetApp, the NetApp logo, and Go further, faster are trademarks or registered trademarks of NetApp, Inc. in the United States and/or other countries. Use of the word "partnering" does not imply a legal partnership between NetApp and any other company.For Additional Information:A. William SteinPamela Matthews GaribaldiChief Financial Officer and Vice President, Investor Relations and Chief Investment OfficerCorporate MarketingDigital Realty Trust, Inc.Digital Realty Trust, Inc.+1 (415) 738-6500+1 (415) 738-6500SOURCE Digital Realty Trust, Inc.