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Digital Realty (DLR) Acquires Slough Data Center Campus – July 11, 2024

Digital Realty (DLR) Acquires Slough Data Center Campus – July 11, 2024

To capitalize on digital transformations, Digital Reality (DLR Free Report) recently announced the acquisition of a colocation data centre in Slough Trading Estate for $200 million.

The acquisition marks the company’s entry into the West London submarket and enhances its existing colocation services in the City and Docklands. It is part of DLR’s efforts to enhance its global data centre platform, PlatformDIGITAL.

The campus features two separate data centres with a combined capacity of 15 megawatts, superior connectivity and room for potential expansion. The Slough data centre campus serves as an established hub for a network of over 150 customers, spanning a wide range of connectivity providers, technology companies and financial services firms, with over 2,000 cross-connects in operation.

Additionally, along with the integration into Digital Realty’s current Metro Connect solution, which enables seamless connectivity across its six campuses in Greater London, customers will also gain access to Digital Realty’s open interconnection and orchestration platform, ServiceFabric. These enhancements provide customers with access to a secure, dynamic, global data exchange network, enabling them to effectively manage and grow their digital businesses.

According to Séamus Dunne, MD of Digital Realty in the UK and Ireland: “As the UK cements its position as Europe’s leading technology hub, this acquisition allows us to better support our customers as they grow and scale, strengthening our presence in this important market.”

The acquisition strengthens Digital Realty’s presence in a key market and reinforces the company’s commitment to sustainability. In line with Digital Realty’s sustainability efforts, the Slough data center campus will be powered by renewable energy. This reflects the company’s initiative to match all energy consumption across its European portfolio with renewable sources and its goal to achieve carbon neutrality for its European portfolio by 2030.

In conclusion, DLR’s acquisition of a data centre campus in Slough positions the company for accelerated growth in the data centre market. As data centres experience unprecedented demand growth, this acquisition provides scope to capitalise on the significant opportunities presented by the evolving digital landscape.

Shares of this Zacks Rank #3 (Hold) company have gained 9.2% over the past three months, outpacing the industry’s growth of 3.7%.

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Remark: Everything related to profit in this article represents funds from operating activities (FFO), a commonly used metric to measure the performance of REITs.