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Digital Realty selling data centre facility for $205M USD

Written by Fri 12 Aug 2022

Digital Realty, leading provider of data centre, colocation, and interconnectivity solutions, has agreed to sell an existing facility for $205 million USD.

The property, which is described as ‘non-core, mixed-use’ was acquired by Digital Realty in 2004, before the company’s IPO. The facility reportedly generates $10.7 million in revenue per year.

The company will first use proceeds from the sale to pay down debt, and then fund more strategic investments in the future. Greg Wright, Digital Realty CIO said that the sale will allow the company to fund strategic investments that are aligned with Digital Realty’s long-term growth.

“Since 2018,” he said, “Digital Realty has sold approximately $4 billion of assets and redeployed proceeds into highly-connected facilities around the world, providing our customers with a global, full-spectrum data centre solution.”

The company followed a similar strategy in 2019, selling off 10 mature data centre properties to Singaporean real estate company, Mapletree. The sale saved Digital Realty $1.4 billion, and the aim was to invest it in faster-growth opportunities.

Chief Executive Officer of Digital Realty, A. William Stein said, “These transactions represent an important step towards our goal of self-funding our growth and diversifying our sources of equity capital.”

Global investments by the company include acquisitions of data centre businesses to improve their strategic footprint in growing markets. Most recently, Digital Realty completed the acquisition of Teraco, a South African provider of data centre and interconnectivity services, for $3.5 billion USD. This expanded Digital Realty’s footprint on the continent, adding South Africa to existing locations in Kenya, Mozambique, and Nigeria.

The Teraco acquisition is part of a growing list of global acquisitions by Digital Realty. In 2019, the company completed the $8.4 billion USD purchase of Amsterdam-based Interxion, expanding their reach in European markets. Prior to that, in 2018, the company purchased Brazilian company Ascenty for $1.4 billion USD, improving their service offerings in Latin America.

Digital Realty is investing in solutions as well as facilities, with the recent launch of Service Fabric. Service Fabric is an orchestration platform that pulls from multiple sources across network and cloud connectivity to enhance end-to-end transparency and solution integrations for customers.

Written by Fri 12 Aug 2022

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Africa America Cloud infrastructure investment
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