Digital Realty is continuing to build its European presence by expanding in Madrid, Spain, an existing market, and Zagreb, Croatia, a new market for the company.
Acquisition in Madrid, Spain
Digital Realty, through its European arm Interxion, acquired a 155k sqft land parcel in Madrid, Spain for $36.6m. This land will add to the company’s data center campus development in the metro. Once fully developed, the new data center will be Digital Realty’s fourth in Madrid. Additionally, it will contribute 34 megawatts of power capacity and 375k sqft of space. The site is located half-a-mile from Digital Realty’s existing data centers in Madrid.
- Land Cost: $1.1m per MW and $98 per buildable sqft
As of June 30, 2020, Digital Realty had 11.8 megawatts of power capacity and 244.4k sqft across its three data centers in Madrid. These facilities were 79% occupied and generated $32.0m of annual rent.
Digital Realty’s new fourth data center is located in Madrid’s technology zone known as “Silicon Alley Madrid”. It is part of the San Blas-Canillejas district and is located on Calle de Alfonso Gómez.
Acquisition in Zagreb, Croatia
Digital Realty, through its European arm Interxion, acquired Altus IT, the leading carrier-neutral data center provider in Zagreb, Croatia. Altus offers a gateway for interconnection and peering with a number of prominent service providers in southeast Europe. Specifically, this gateway is through one of the most interconnected data centers in the region.
Altus has more than 100 customers, which include:
- 50 connectivity providers (including five tier-one carriers)
- Two main internet exchanges (NetIX and Croatian Internet Exchange)
Rationale for Digital Realty in Spain and Croatia
Digital Realty is continuing to focus its acquisition efforts outside of the United States. Post-Interxion the company has begun to in-fill its European portfolio in Tier 2 markets, outside of the traditional “FLAP” (Frankfurt, London, Amsterdam and Paris) European data center hubs. The company’s strategy is particularly evident through this recent expansion in Spain and entry into a new market, being Croatia.
Digital Realty is the second largest public data center REIT with a global footprint of 280 data centers. The company’s data centers collectively represent 1,725 megawatts of power capacity and 34.0m sqft. These facilities are located across 45 metros and six continents.
