DigitalCentre2020 The Future of Data Centres Omer Wilson Marketing Director Asia Pacific 29 th October 2015
The Future is Robotics Genetics, Nanotechnology & Robotics 2
'two billion years from the origin of life to cells; fourteen years from the PC to the World Wide Web ' 3
10x The digital universe is doubling in size every two years; it will multiply ten-fold by 2020 - IDC / EMC 4
50% Nearly half of all large enterprises will have hybrid cloud deployments by the end of 2017 - Gartner 5
$15 trillion The Industrial Internet has the potential to add $10 to $15 trillion (with a T ) to global GDP over the next 20 years - General Electric 6
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 $9.4 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) 131 properties 24.5 million rentable square feet Includes 1.3 million square feet of active development and 1.2 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 March 31, 2014. 2) Based on closing common stock price of $58.88 as of July 1, 2014 and weighted average common stock and units outstanding diluted as of March 31, 2014. 3) As of March 31, 2014. 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 Credit ratings are not recommendations to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion.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. 7
Global - Digital Realty Data Centres The Digital Hubs for Asia Pacific and the Globe 8
The combination, not the tool Focus on cloud purity will fail, focus on connection Global business spending for infrastructure and services related to the cloud reached an estimated $174 billion in 2014, a 20% increase from 2013 (1) In 2017: Global data centre traffic is forecast to triple to 7.7 Zb (1) 160 Global IP Traffic by Region (2) Monthly Exobyte Usage by Category (EB/mo) EB/mo in thousands 120 80 40-2012 2013 2014 2015 2016 2017 1) JLL Data Center Outlook North America 2014. 2) Cisco Visual Networking Index Forecast and Methodology, 2012-2017, May 2013. North America Europe Asia Pacific Other 9
Digital Global Alliances Strength Through Partnership IT/VERTICAL CONSULTANTS DIGITAL CONSULTING PARTNERS SYSTEMS INTEGRATORS DIGITAL CORE Digital Realty keeps our focus on what we do best and what our clients have come to expect Datacenter Fitouts Advanced Tools Space Power Tools Connectivity Equipment Leasing DIGITAL CORE PLUS Enabling our clients from fit-out through to deployment is vital to their success DIGITAL CONSULTING PARTNERS MANAGED SERVICES Value Added Resellers Agents Referral Partners DIGITAL SERVICES PARTNERS CLOUD SERVICES Digital Realty clients are solving complex business problems with our solutions. As we help them turn their datacenters into data advantage our consulting partners light the way DIGITAL SERVICES PARTNERS NETWORK SERVICES The demand for intelligent guidance with regard to cloud and managed services is strong and growing 10
The Right Strategy. What is it? Agile, Robust - Cloud & Network Connectivity 11
IoT Will Make Current Value Blush Global, Open, Connected simply table stakes
The Future is Genetics Genetics, Nanotechnology & Robotics 13
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Focused Pursuit Comprehensive Customer Focused Product Suite SCALE COLOCATION CONNECTIVITY Solution to scale from a medium 300+ kw to very large compute deployments Can execute a solution for medium to large deployment in weeks, contracting for 5-10+ years Customize data center environment to specific deployment needs Due to size of deployments, customers sometimes opt to have their own on-site staff Enabling small (1 Cab) to medium (75 Cab) data center deployments Provides agility to quickly deploy computing infrastructure in days, contract for 2-3 years Consistent designs and operational environment and consistent power expenses Leverage optional skilled remote hands and on-site customer support Connecting customers & partners inside the data center Connecting across data centers in the same metropolitan area Privately and securely connecting to cloud services Enabling Internet peering and multicloud access 15
Facility Classification Overview Internet Gateway, Campus Connect and Individual Property Scale Colocation INTERNET GATEWAY FACILITY CAMPUS CONNECT FACILITY INDIVIDUAL PROPERTY CUSTOMER FOCUS SMACC Network Providers IT Services Financial Services CUSTOMER FOCUS SMACC Network Providers IT Services Financial Services CUSTOMER FOCUS Customers requiring abundant space and power FACILITY EXAMPLES FACILITY EXAMPLES FACILITY EXAMPLES 350 EAST CERMAK Chicago, IL ASHBURN CAMPUS Ashburn, VA 55 MIDDLESEX TURNPIKE Boston, MA 56 MARIETTA ST Atlanta, GA DALLAS CAMPUS Dallas, TX 2260 EL SEGUNDO BLVD. El Segundo, CA TARGETED CUSTOMER EXAMPLES TARGETED CUSTOMER EXAMPLES TARGETED CUSTOMER EXAMPLES 16
Global Campus Network Attractive Environments for Customers to Land and Grow CAMPUS LOCATIONS Ashburn Chicago New York Dallas Silicon Valley London Singapore KEY CUSTOMER ECOSYSTEM IT & Cloud Services Network & Mobility Financial Services Media & Other 17
Elastic Hybrid Cloud Directly Connect to SoftLayer in < 1.5 Milliseconds OVERVIEW IBM as a partner can scale Elastic Hybrid Cloud and Storage to Enterprise built around the connected campus CAMPUS CONNECT FACILITY MECHANICAL & ELECTRICAL AGILE FOUNDATION Directly connect to SoftLayer in less than 1.5 milliseconds Provide secure 10G direct cross-connect from customers to SoftLayer Cloud SCALE COLO SUITE MMR 18
A Disruptive Transition Where? M2M & IoT Dominant Endpoints (Current) Dominant Endpoints (2025) Smartphone Smart City Smart Grids Tablet Smart Agriculture Smart Healthcare Laptop / PC Intelligent Buildings Smart connected vehicle car sensors/actuators talk to each other & vehicles talk to each other Smart / Connected Cars Person behind every endpoint Devices organised as systems (macro endpoints) Human vs. Machine growth projections. 19
Drivers in the market - 1 Market Drivers >> Value, Opportunity The drivers are many and diverse The amount of data created globally has grown by a CAGR of 57.1% in the last five years (2008-2013) and will continue to grow at a CAGR of 40.3% from 2013 to 2018 Internet enabled devices Global Internet Users 2013A 2018F CAGR 2013A- 18F 5.6 billion 18.2 billion 26.6% 2.4 billion 5.3 billion 17.2% 20
Drivers in the market - 1 Market Drivers >> Value, Opportunity Why own and manage internal data centres? % of outsourced data centre space 21
CLIENT Leader in semiconductors used in 95% of all smartphones globally CHALLENGE A data centre solution that aligns with its vision of sustainability SOLUTION A Digital Realty data centre, comprehensive DCIM system, and robust connectivity, with leading edge high-efficiency cooling We had an immediate need for a high efficiency, high density data centre. But more importantly, we have a long-term need for a partner who can potentially help us with our go-forward data centre strategy. - John Goodenough, Vice President of Design Technology and Automation, ARM Holdings 22
CLIENT Global data storage provider CHALLENGE Rapidly growing business and explosion of data to store and manage Our requirements were rigorous and our timeline was short, and Digital Realty delivered. It was a great partnership every step of the way. - Bob Lofton, Vice President of Information Technology, NetApp SOLUTION Made-to-order data center solution to support its growing business into the future, completed within one year 23
M2M Digital Cloud Connect 24
OUR MISSION: To Create awareness of, and educate decision-makers on, a 5 year vision towards the Digital Centre 2020 to encourage businesses to make the switch from Data Centre to Digital Centre to ensure stability, scalability and growth in a rapidly changing landscape. 26
The Future is Digital Loyang Way Next Generation of Data Centre 27
Green Data Centres? 28
An Overview Data Centres are one of the largest and fastest growing consumers of electricity in the United States, consuming an estimated 90 billion KWh in 2013. This figure is forecasted to reach 140 billion KWh by 2020, according to the Natural Resources Defense Council. In a report by Mordor Intelligence, energy usage in data centres throughout Asia Pacific is rising to match demand. 26.5% of the total energy used by data centres around the world is consumed by the APAC region. Asia Pacific is the fastest growing region with 13.12% CAGR from 2015-2020, while the global data centre market is estimated to grow at a CAGR of 12.24% to reach $3.01 billion by the end of 2020. Aided by the increase in requirement for energy efficient data centres from various enterprises coupled with rules and regulation set by several governments in order to promote the usage of these eco-friendly data centres, the global market is likely to expand at a CAGR of 30.8% between 2015 and 2022. 29
Digital Realty Building Green The DLR-managed portfolio (global) was supplied with 22% renewables in 2014. Within Europe in 2015, our power contracts are 100% renewable. This covers our portfolio in the UK, Ireland, Paris and Amsterdam. Digital Realty is a signatory to the Corporate Renewable Energy Buyer s Principles, co-sponsored by BSR, WWF, WRI, and RMI. This initiative supports greater access to renewable energy power. 30
Industry Recognition! Our Profile Park Data Centre in Dublin is a great example of highly energy efficient (design PUE 1.15) BREEAM-certified data centre construction. The project received a Brill Award, and uses an innovative indirect adiabatic cooling system that allows the data center to operate efficiently yearround. Our Digital Singapore facility received a Green Mark Platinum certification by the Building and Construction Authority (BCA) and Infocomm Development Authority (IDA). This was the first time a colocation data centre in Singapore has achieved the Green Mark Platinum level under the category of Existing Data Centre. 31
Sustainability >> Client Value The Clean Start Program Digital Realty will procure third-party verified renewable energy certificates (RECs) on behalf of participating clients. Clean energy generated by power plants that are fueled by renewable resources 32
3 Dublin, Ireland [Digital Profile Park] Presentation Name 19 November 2015 33
Why Dublin Why Now / What s Changed? PROFILE PARK IS THE JEWEL IN THE CROWN ITS REFRESHINGLY BOLD 1920KW DATA HALLS AT DESIGN PUE OF 1.15! WHAT DOES THIS MEAN? $800,000 SAVINGS PER ANNUM OVER OUR COMPETITORS ON ELECTRICTY COSTS! HOW DID WE ACHIEVE THIS? WE USE JUST AIR TO COOL THE DATA HALL NO AIR CONDITIONING / NO CHILLERS / EXCOOL TECHNOLOGY INNOVATION WITH JUST IN TIME DELIVERY
4 Crawley, UK [Rackspace Data Centre] Presentation Name 19 November 2015 36
Crawley, UK The UK s Green Data Centre RACKSPACE Based in Crawley, West Sussex, 130 000 square foot data centre The initial build was constructed in 15 months and took approximately 500,000 man hours It provides 6MW across two data suites, and will eventually comprise of four data suites with a total 12MW capacity The site allows for further expansion up to 30MW The facility has been designed to meet the specific needs of Rackspace customers, encompassing top speeds, availability and energy consumption Power Usage Effectiveness (PUE) of 1.15 compared to the average data centre today rating of 1.7 Design BREEAM assessment certification of Excellent: it is one of the UK s greenest data centres First data centre in the UK to make use of innovative 'indirect outside air' cooling technology on this scale, without mechanical cooling, which means the overhead energy required to operate the data centre has been cut by 80 per cent 37
Questions?
Thank You Omer M. Wilson Marketing Director, APAC owilson@digitalrealty.com www.digitalrealty.com 45