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Press release from PR Newswire

Digital Realty Announces Results Of Annual Asia Pacific Data Centre Demand Survey

Monday, April 01, 2013

Digital Realty Announces Results Of Annual Asia Pacific Data Centre Demand Survey

16:05 EDT Monday, April 01, 2013

Independent study commissioned by Digital Realty indicates continued growth in Singapore, Australia, Hong Kong and Japan, driven by industry demand for increased security

SINGAPORE, April 1, 2013 /PRNewswire/ -- Digital Realty Trust, Inc. (NYSE: DLR), a leading global provider of data centre solutions, has released the results of a study of Asia Pacific data centre trends based on a detailed survey of senior decision makers at large corporations in Singapore, Australia, Hong Kong, and Japan. The research was conducted on behalf of Digital Realty by independent research firm Campos Research & Analysis.

The survey of senior leadership at large corporations in the four APAC regions indicates continued growth for the data centre industry in 2013 and 2014:

  • A strong majority of respondents (83%) indicated that they plan to expand their data centres in either 2013 or 2014;
  • Increased security was the most important reason given for data centre expansion, followed by disaster recovery;
  • The trend is toward more efficient data centres with the following attributes:
    • Less raised floor space (13,300 square feet /1,235 square metres on average, compared to 14,800 square feet / 1,375 square metres in last year's survey);
    •  Power needs remained constant (an average requirement of 5.0 kW per rack, compared to 5.1 kW per rack a year ago);
  • The survey respondents indicated a strong preference for APAC locations for their new data centres; and
  • Two-thirds of respondents would rather see the data centre in the country where they work. The most popular target locations cited were Singapore, Hong Kong, Tokyo and Sydney.

In a recent research report titled Data Center Services On Fire In Emerging Asia Pacific, Forrester Research Senior Analyst Seepij Gupta states, "Forrester estimates a 22% compound annual growth rate (CAGR) for the next five years in third-party data center services."

"The results of the Campos study, as well as Forrester's research, confirm the continued demand for data centre space in our markets," said Kris Kumar, regional head of Asia Pacific at Digital Realty. "Customer demand is being fueled by similar trends we are seeing in other parts of the world. Our customers' need improved security, especially in light of the trends towards cloud, virtualization, and an increased reliance on critical IT systems."

For Further Information

A summary of the Campos survey results can be found at the company Knowledge Center at www.digitalrealty.com via the "Thought Leadership" dropdown menu.

About the Methodology

Research was commissioned by Digital Realty and carried out independently by Campos. Results of this study are based on surveys of 401 IT decision makers at large corporations with annual revenues of at least US$500M and/or at least 500 employees (at least 2,000 employees for Singapore). The survey includes 100 decision makers in each of Australia, Singapore and Japan, and 101 in Hong Kong. All survey participants are directly involved in the process of managing, executing contracts for, implementing or expanding existing data centres. Data centre internal customers also participated. All participants were senior level executives or management, including CxOs, in IT, MIS, IS or Finance. The survey was conducted in January 2013.

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 centre solutions by providing secure, reliable and cost effective facilities that meet each customer's unique data centre 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 119 properties, excluding three properties held as investments in unconsolidated joint ventures, comprise approximately 22.2 million square feet as of February 28, 2013, including 2.4 million square feet of space held for development. Digital Realty's portfolio is located in 32 markets throughout Europe, North America, Asia 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 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 future data centre expansion expectations, future data centre attributes, the most popular locations for future data centres, the compound annual growth rate for the next five years in third-party data center services, and the continued demand for data centres, all in the Asia Pacific region. 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 developed properties or businesses; the suitability of our properties and data center infrastructure, delays or disruptions in connectivity, failure of our physical infrastructure or services or availability of power; risks related to joint venture investments, including as a result of our lack of control of such investments; delays or unexpected costs in development 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 development; 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, 2012.  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.

For Additional Information:

A. William Stein

Pamela M. Garibaldi

Kris Kumar

Chief Financial Officer and

Vice President, Investor Relations

Senior Vice President and

Chief Investment Officer

and Corporate Marketing

Regional Head, Asia Pacific

Digital Realty Trust, Inc.

Digital Realty Trust, Inc.

Digital Realty Trust, Inc.

+1 (415) 738-6500

+1 (415) 738-6500

+65 65053900

Media Inquiries: pr@digitalrealty.com

SOURCE Digital Realty Trust, Inc.

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