Powering the Data Center Future

Transcription

1 Powering the Data Center Future Jim Smith Chief Technology Officer 13 October 2014

2 Digital Realty Overview (NYSE: DLR) World s Largest Data Center REIT One of the 20 largest publicly-traded U.S. REITs (1) Equity market capitalization of approximately $9.0 billion (2) Investment management approach focused on return on invested capital (ROIC) Diversified portfolio of properties and tenants, located in over 30 markets throughout North America, Europe, Asia, and Australia (3) 130 properties 24.5 million rentable square feet Includes 1.4 million square feet of active development and 1.3 million square feet held for future development High quality tenant base approximately 2,000 leases with 600+ tenants, including leading global companies across various industries Investment grade ratings (4) S&P: BBB (Stable) Moody s: Baa2 (Stable) Fitch: BBB (Stable) Over a decade of experience providing data center solutions 1) U.S. REITs within the RMZ. Source: companies financials based on latest public filings. Based on equity market capitalization as of August 29, ) Based on closing common stock price of $65.25 as of August 29, 2014 and weighted average common stock and units outstanding as of June 30, ) As of June 30, Includes investments in thirteen unconsolidated joint ventures. 4) These credit ratings may not reflect the potential impact of risks relating to the structure or trading of the Company s securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion. The Company does not undertake any obligation to maintain the ratings or to advise of any change in ratings. Each agency s rating should be evaluated independently of any other agency s rating. An explanation of the significance of the ratings may be obtained from each of the rating agencies. 2

3 Global Scale Providing Customer Solutions in over 30 Markets DLR Market Seattle Dublin Manchester DLR Regional Office San Francisco Portlan d Sacramento St. Paul Chicag o Toront o Boston New York Philadelphia London Paris Amsterdam Geneva Japan Los Angeles Silicon Valley Phoenix Denver Dallas Austin St. Louis Atlanta Northern Virginia Charlotte Annualized Base Rent By Region (1) Asia 4% Houston Miami Europe 19% Hong Kong North America 77% Singapore Sydney Melbourne Note: Represents consolidated portfolio and investments in our unconsolidated joint ventures. 1) Annualized base rent represents the monthly contractual base rent (defined as cash base rent before abatements) under existing leases as of June 30, 2014 multiplied by 12. 3

4 s High-Quality, Diversified Tenant Base Tenant Type By Percentage of Annualized Base Rent (1) Major Tenants # Locations % ABR (1) (3) % Internet Enterprise (2) 6% Financial Services 17% Other Corporate Enterprise 20% (4) % % % 5 2.6% IT Services 31% Telcom Network Providers 26% 4 2.4% % 3 2.0% 7 1.9% 7 1.9% Total 33% Note: As of June 30, Represents consolidated portfolio plus our managed portfolio of unconsolidated joint ventures based on our ownership percentage. 1) Calculation based on annualized base rents (monthly contractual cash base rent before abatements under existing leases as of June 30, 2014 multiplied by 12). 2) Digital Realty s Internet Enterprise tenants include Amazon, Facebook, Google, Microsoft, Salesforce and Yahoo! occupying approximately 1.3 million square feet. 3) Represents leases with Savvis Communications Corporation and Qwest Communications International Inc. (or affiliates thereof), which are our direct tenants. CenturyLink, Inc. acquired Qwest in 2Q11 and Savvis in 3Q11, and Qwest and Savvis are now wholly owned subsidiaries of CenturyLink. 4) Represents leases with IBM and leases with SoftLayer. IBM acquired SoftLayer in July

5 We are a Dividend Payer Too Ten years of dividend growth As a REIT, we pay out essentially 100% of earnings 5

6 What is a Data Center? A BUILDING WITH Highly engineered and integrated set of building systems that ensure continuous availability of electrical, cooling, network security and fire protection services TYPICAL SYSTEMS Diesel generators and fuel systems Medium voltage distribution typically at 2N Uninterruptible power supplies (UPS) and batteries High capacity cooling Biometric and card access security Sometimes exotic fire suppression 6

7 Data Center 101 What is a Data Center? 7

8 Data Center 101 What is a Data Center? 8

9 Data Center 101 What is a Data Center? 9

10 About Data Centers They are expensive Up to $2000/square foot of construction costs Varies greatly by market and urbanization They are everywhere Urban v Suburban International They have long lives Typically years 10

11 Data Center Power Characteristics Loads are growing Koomey report Power efficiency is a critical competitive advantage Power costs often drive location and markets Local weather and environment are also key drivers Exceptionally high load factors Our top ten sites are 50% of our total load We only see 1/3 to 1/2 of the metered load in our portfolio We own almost 200,000 batteries 11

12 Digital Realty Load Growth 2005 to

13 Santa Clara, CA Suite 100 Load Factor 13

14 Santa Clara, CA Suite 100 Load Factor 14

15 Commentary Do not fear the data center This is not Investment is rational High load factors drive good investment outcomes for the industry Helping operators make connections is the best economic development activity for your system Truly the Factory of the Future 15

16 Jim Smith Chief Technology Officer