Annual Digital Realty Survey Finds Virtualization, Big Data, and Consolidation to be Top Data Centre Drivers in APAC

Annual Digital Realty Survey Finds Virtualization, Big Data, and Consolidation
                    to be Top Data Centre Drivers in APAC

Almost half of respondents expect data centre budgets to increase by 5-10
percent in the next 12 months

PR Newswire

SINGAPORE, May 12, 2014

SINGAPORE, May 12, 2014 /PRNewswire/ -- The virtualization of critical
applications, big data, and data centre consolidation will drive the next wave
of data centre capacity growth in APAC, according to a commissioned survey
conducted by Forrester Consulting on behalf of Digital Realty Trust, Inc.
(NYSE:DLR).

Digital Realty's 2014 survey of data centre trends in APAC canvassed data
centre decision makers in Singapore, Hong Kong, Japan, and Australia.

The combined survey results for the four countries revealed that the top
expected drivers of data centre capacity growth were virtualization (47
percent), big data (46 percent), and data centre consolidation (41 percent).
The next tier of drivers included business growth (39 percent), business
continuity (34 percent) and storage growth (32 percent).

Key drivers of data centre growth differed by country:

  oHong Kong: data centre consolidation, and big data related technology
    investments
  oAustralia: big data related technology investments, virtualization, and
    data centre consolidation
  oSingapore: big data related technology investments, and virtualization
  oJapan: data centre consolidation, virtualization, and storage growth

"This survey helps us better understand the business priorities of our APAC
clients, enabling us to become a valued partner and trusted advisor in the
development of a data centre strategy that is uniquely suited to our clients'
needs," said Kris Kumar, Digital Realty Senior Vice President and Regional
Head for the Asia Pacific region. "IT transformation projects such as
virtualization and big data are viewed as the main factors driving robust
development across the data centre sector. We feel this demonstrates the
maturing aspect of these organizations in relation to their data centre plans
and budgets."

Key Considerations: Safe Locations and Resiliency

When making decisions about new APAC data centre facility investments, the
most important considerations for respondents were the data centre's location
and resiliency. Factors rated as "Important" or "Very Important" by
respondents included the risk profile of the location (78 percent), the
resiliency level and availability of the facility (77 percent), and the level
of control over the facility (75 percent). APAC companies also prioritized the
data centre's network connectivity options and carrier availability and
density, with 75 percent of respondents claiming this as a priority. 

Strong Expansion Plans

Around 50 percent of respondents said their data centre budgets will grow
between 5-10 percent in the next 12 months, with nearly 60 percent of
respondents in Australia and Singapore expecting to increase their spending
between 5-10 percent. An additional 11 percent are planning to increase their
investment in data centre facilities by more than 10 percent over the next 12
months. When surveyed regarding their future plans for data centre capacity
planning, respondents (60 percent) indicated they are planning some form of
expansion within the next four years. Respondents consider outsourcing (40
percent) and colocation or other data centre leasing (31 percent) as the
preferred sourcing models to address their expansion plans.

Survey Methodology

In this Digital Realty-commissioned study, Forrester Research conducted an
online survey of organizations in the US, UK, Singapore, Japan, Germany, Hong
Kong, France, Canada, Australia, the Netherlands, and Ireland to evaluate
their data centre investment plans and drivers. Survey participants included
senior-level decision makers in IT, finance, and line-of-business roles with
responsibility for data centres. Results of the Asia-Pacific portion of the
study are based on surveys of 245 senior-level decision makers with
responsibility for data centres. Almost all (90 percent) of the Asia-Pacific
survey respondents work for firms headquartered in the Asia-Pacific region;
more than half work at firms with more than 1,000 employees. Survey
respondents were located in the following regions: 30 percent in Singapore, 29
percent in Hong Kong, 25 percent in Japan, and 15 percent in Australia. The
majority of Asia-Pacific respondent organisations (52 percent) had 2013
revenue of US$100 - $500M; and 22 percent had US$500 - $1B in revenue. The
survey began in January and was completed in February 2014.

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 financial services, cloud and information technology
services, to manufacturing, energy, health care and consumer products.
Digital Realty's 131 properties, including 13 properties held as investments
in unconsolidated joint ventures, comprise approximately 24.5 million square
feet as of March 31, 2014, including 1.3 million square feet of space under
active development and 1.4 million square feet of space held for future
development. Digital Realty's portfolio is located in 33 markets throughout
North America, Europe, 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 http://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 our 2014 survey of data centre
trends in Asia Pacific, expectations regarding future data centre expansion
and spending, demand and demand drivers for data centres in the Asia Pacific
region, and our strategy and plans. These risks and uncertainties include,
among others, the following: the impact of current global economic, credit and
market conditions; 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; 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 centre 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, increased
operating costs or increased vacancy rates; increased competition or available
supply of data centre space; our inability to successfully develop and lease
new properties and development space; 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, as amended, for the year ended December 31, 2013 and Quarterly
Report on Form 10-Q for the quarter ended March 31, 2014. 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             John J. Stewart           Kris Kumar
Interim CEO and             Senior Vice President,    Senior Vice President
                                                        and
Chief FinancialOfficer     Investor Relations        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

SOURCE Digital Realty Trust, Inc.

Website: http://www.digitalrealtytrust.com
 
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