(The Hosting News) – The Dallas, Texas area may be better known for its vibrant downtown and the region of the country that’s home to the National Football League’s Dallas Cowboys. However, something perhaps less discussed is the area’s importance to the tech industry.
On Monday, top global colocation provider Digital Realty Trust announced that it had paid $123 million to purchase an 819 thousand square foot data center facility in the Dallas suburb of Lewisville.
Digital Realty shouldn’t have to do much work (if any) filling the data center. It comes already 99% leased. However, 39 acres have been set aside by Digital Realty with the goal of expansion.
Discussing the move’s impact on his company in a press release, Digital Realty CEO Michael Foust said acquiring the site would “immediately contribute stabilized cash flow to our portfolio from the existing long-term leases, while providing a wide range of future development and potential redevelopment opportunities.”
The current site is named the Convergence Business Park and Digital Realty is betting on a big return in investment. “With the availability of developable land and increased power from the expanding substation, we believe this investment has considerable upside potential,” stated Digital Realty Chief Acquisition Officer Scott Peterson.
The property itself offers IT capacity amounting for 16.5 megawatts. Electricity is supplied from power company Texas New Mexico Power. Meanwhile, Digital Realty already has a presence around the city with more than a dozen currently operating facilities in the Dallas area. Other companies with Dallas data centers include Internap, CyrusOne and Equinix.
Digital Realty’s acquisition follows an announcement just last week in which the company revealed that it would be partnering with colocation provider Equinix to work on a new Ashburn, Virginia data center for hosting provider Carpathia Hosting. Centered around Digital Realty’s “Powered Base Building architecture,” the new facility is expected to encompass 64 thousand square feet.
As a global provider of colocation services, Digital Realty operates a total of 98 properties worldwide spanning regions such as North America, Europe and the Asia-Pacific. For more information regarding the matter, view a press release from Digital Realty here (investor.digitalrealty.com).