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Digital Realty (DLR) Acquires Data Center Campus in Slough
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To capitalize digital transformations, Digital Realty (DLR - Free Report) recently announced the acquisition of a colocation data center in the Slough Trading Estate for $200 million.
The purchase signifies the company's entry into the west London submarket and enhances current colocation services in the City and Docklands. It comes as a part of the DLR’s efforts to improve its global data center platform, PlatformDIGITAL.
The campus boasts two separate data centers with a combined capacity of 15 megawatts, superior connectivity and space for potential expansion. The Slough data center campus serves as a well-established hub for a network of more than 150 customers, encompassing a wide range of connectivity providers, technology firms and financial services companies, with more than 2,000 cross-connects in use.
Moreover, along with the integration into Digital Realty's current Metro Connect solution, which enables smooth connectivity between its six campuses in Greater London, customers will also gain access to Digital Realty's open interconnection and orchestration platform, ServiceFabric. These improvements will offer customers access to a secure, dynamic and global data exchange network, allowing them to effectively manage and expand their digital operations.
Per Séamus Dunne, MD of Digital Realty in the United Kingdom and Ireland, "As the U.K. solidifies its position as Europe's premier technology hub, this acquisition enhances our ability to support customers as they grow and scale, further establishing our presence in this vital market."
The acquisition enhances Digital Realty's presence in a key market and reinforces the company's dedication to sustainability. In line with Digital Realty's sustainability efforts, the Slough data center campus will run on renewable energy. This reflects the company's initiative to match all energy consumption in its European portfolio with renewable sources and its aim of achieving carbon neutrality for its European portfolio by 2030.
In conclusion, DLR's acquisition of a data center campus in Slough positions the company for accelerated growth in the data center market. As data centers experience unprecedented demand growth, this acquisition offers scope to capitalize on the significant opportunities presented by the evolving digital landscape.
Shares of this Zacks Rank #3 (Hold) company have gained 9.2% in the past three months, outperforming the industry’s growth of 3.7%.
The Zacks Consensus Estimate for IRM’s 2024 FFO per share stands at $4.45, indicating an increase of 8% from the year-ago reported figure.
The Zacks Consensus Estimate for STAG’s 2024 FFO per share is pinned at $2.38, suggesting year-over-year growth of 3.9%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Digital Realty (DLR) Acquires Data Center Campus in Slough
To capitalize digital transformations, Digital Realty (DLR - Free Report) recently announced the acquisition of a colocation data center in the Slough Trading Estate for $200 million.
The purchase signifies the company's entry into the west London submarket and enhances current colocation services in the City and Docklands. It comes as a part of the DLR’s efforts to improve its global data center platform, PlatformDIGITAL.
The campus boasts two separate data centers with a combined capacity of 15 megawatts, superior connectivity and space for potential expansion. The Slough data center campus serves as a well-established hub for a network of more than 150 customers, encompassing a wide range of connectivity providers, technology firms and financial services companies, with more than 2,000 cross-connects in use.
Moreover, along with the integration into Digital Realty's current Metro Connect solution, which enables smooth connectivity between its six campuses in Greater London, customers will also gain access to Digital Realty's open interconnection and orchestration platform, ServiceFabric. These improvements will offer customers access to a secure, dynamic and global data exchange network, allowing them to effectively manage and expand their digital operations.
Per Séamus Dunne, MD of Digital Realty in the United Kingdom and Ireland, "As the U.K. solidifies its position as Europe's premier technology hub, this acquisition enhances our ability to support customers as they grow and scale, further establishing our presence in this vital market."
The acquisition enhances Digital Realty's presence in a key market and reinforces the company's dedication to sustainability. In line with Digital Realty's sustainability efforts, the Slough data center campus will run on renewable energy. This reflects the company's initiative to match all energy consumption in its European portfolio with renewable sources and its aim of achieving carbon neutrality for its European portfolio by 2030.
In conclusion, DLR's acquisition of a data center campus in Slough positions the company for accelerated growth in the data center market. As data centers experience unprecedented demand growth, this acquisition offers scope to capitalize on the significant opportunities presented by the evolving digital landscape.
Shares of this Zacks Rank #3 (Hold) company have gained 9.2% in the past three months, outperforming the industry’s growth of 3.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are Iron Mountain (IRM - Free Report) and Stag Industrial (STAG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for IRM’s 2024 FFO per share stands at $4.45, indicating an increase of 8% from the year-ago reported figure.
The Zacks Consensus Estimate for STAG’s 2024 FFO per share is pinned at $2.38, suggesting year-over-year growth of 3.9%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.