Digital Realty (DLR) Unit Expands Amsterdam Data Tower

Digital Realty Trust, Inc.'s DLR unit — Interxion — completed the third phase of the expansion of its data-centre facility in Amsterdam. The move will help facilitate 2.4 megawatts of additional capacity across four floors of the Amsterdam Data Tower.

The tower, which was officially opened in 2016, boosts the coverage and capacity of the company’s global data-center platform, PlatformDIGITAL, in Amsterdam. Located in the Amsterdam Science Park, this data center hosts a range of telecom carriers, cable providers and Internet Service Providers (ISP).

The move seems to be beneficial, as Amsterdam has one of the highest data gravity intensity scores in the world, according to Digital Realty’s Data Gravity Index report. Data gravity is driving data-center demand and the company’s PlatformDIGITAL is poised to capitalize on this. Amsterdam is likely to witness new business opportunities from the booming technology and financial services communities.

The expansion of the Amsterdam Data Tower will help meet the challenges posed by data gravity. In addition, the high levels of connectivity will provide faster and simpler data exchange with partners and other data centers.

The data center will help customers access the leading connectivity providers, ISP, large Internet exchanges and a broader set of service providers on PlatformDIGITAL for scaling digital business.

With growth in cloud computing, Internet of Things and big data, and an increasing number of companies opting for third-party IT infrastructure; data-center REITs are experiencing a boom market. Also, the estimated growth rates for the artificial intelligence, autonomous vehicle and virtual/augmented reality markets will remain robust over the next five to six years.

As infrastructure providers for the rapidly-growing digital economy, data-center landlords, such as Digital Realty, Equinix, Inc. EQIX, CyrusOne Inc. CONE and CoreSite Realty Corporation COR, are well placed for sustainable growth. However, aggressive pricing pressure is likely to prevail amid the competitive landscape.

In the past six months, Digital Realty’s shares have gained 13.7%, underperforming the industry’s rally of 14.4%.

Image Source: Zacks Investment Research

Digital Realty currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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