Digital Realty Trust, Inc.

Research Study Indicates Widespread Datacentre ...





SAN FRANCISCO and LONDON, November 7 /PRNewswire/ --

    - Digital Realty Trust Survey Also Finds that Most European Companies Are
Implementing Green Datacentre Strategies



    Digital Realty Trust, Inc. (NYSE: DLR), a leading owner and manager of
corporate datacentres and Internet gateways, is reporting new research data
focused on the leading datacentre trends in the European market. The release
of this data follows the publication of a similar study of the U.S.
datacentre market earlier in 2007. This new European study is based on a
recent poll of senior decision makers who are either directly responsible for
datacentres or influence significant decisions related to datacentre
operations at large European companies. The research was conducted for
Digital Realty Trust by the respected research firm Campos Research &
Analysis, the same firm that conducted the earlier study of
datacentre-related initiatives in the U.S. The surveyed companies come from a
wide range of industries, including financial services, manufacturing,
professional services, packaged consumer goods, telecommunications, consumer
services and information technology.



    Key findings from the research study and additional data points are
provided below:


    
    -- More than 80 percent of respondents have plans to expand their
       datacentres.
       - 18 percent plan to expand their datacentre in the very near term
         (within the next 12 months).
       - 67 percent plan to expand their datacentres within the next 24
         months.
       - 15 percent of respondents are in the planning stages for datacentre
         expansion that will happen more than 24 months from now.
       - Of the study participants who are planning datacentre expansions, 79
         percent plan to expand in two or more locations, indicating that
         these expansions will be complex, multi-site datacentre initiatives.
       - The average size of the planned expansions is approximately 1,000
         square metres (10,000 square feet).

    -- Disaster recovery initiatives were cited as the leading reason for
       expansions, but the need for additional network connectivity,
       upgraded cooling, more raised floor area, additional power, and new
       applications were also cited as key drivers for expansion plans.

    -- Respondents identified the following cities as their most preferred
       cities for the location of their datacentre expansions (in order of
       ranking):
       - London
       - Paris
       - Dublin
       - Amsterdam
       - New York

    -- Nearly 60 percent of companies have developed a green strategy for
       their datacentres that will impact their future datacentre decisions.

    -- 74 percent of companies expect virtualization to reduce their space
       requirements, but they estimate this reduction to be 20 percent or
       less.





    "Similar to our survey of the U.S. market earlier this year, this study
of European datacentre initiatives paints a robust picture of the datacentre
market: broad-based demand for datacentre space from a wide variety of
industries, with strong growth prospects based on the project timelines
looking out two years and beyond. The findings revealed that demand was even
stronger than our own estimates; it is remarkable to see that in both Europe
and the U.S. more than 80 percent of companies are planning datacentre
expansions," said Michael F. Foust, CEO of Digital Realty Trust.



    Mr. Foust added, "One thing that is very clear from this European study
and the earlier U.S. study is that datacentres are core to the operating
infrastructure for companies today. Datacentres are no longer simply a closet
full of servers that only the IT team worries about; datacentres are critical
assets that the executive team and Board of Directors have as one of the key
issues on their radar screen."



    "This second phase of our study is important because it puts the data
into a global perspective, and confirms that the market can expect to see
sustained demand for datacentre space throughout Europe and in the U.S. as
companies implement their datacentre plans," said Chris Crosby, Senior Vice
President of Digital Realty Trust. "This study also underscored that we are
focused on the right markets, with cities like London, Paris, Amsterdam and
New York clearly being locations where European companies want to expand.
Each of these markets has limited supplies of quality datacentre space, and
Digital Realty Trust is well-positioned to serve that growing demand with our
portfolio of world-class facilities in each of those markets."



A number of additional findings from the research study are as follows:

    
    -- Approximately 17 percent of companies have no redundancy for their
       electrical and cooling equipment in their current datacentres.
       -- Only half of companies have dedicated backups (2N) for their 
          critical electrical systems.

    -- Three quarters of all respondents are planning to expand to
       datacentres with between approximately 500 and 2500 square metres 
       (5,000-25,000 square feet) of raised floor space.

    -- When study participants were asked to rate the importance of several
       factors in selecting a geographic location for their datacentres,
       security was ranked as the most important criterion followed by
       accessibility for company personnel, telecom availability and power
       costs.

    -- Three out of every five respondents plan to use a partner to implement
       their expansion plans. Only 21 percent are planning to implement the
       expansion themselves.





    Mr. Crosby also commented, "One interesting difference between the
results of the U.S. and European studies is the leading reason behind these
expansions. In Europe, disaster recovery is far and away the primary reason
that companies cited for their expansion plans, while in the United States
the deployment of new applications was the lead reason. The difference
suggests that while demand will be strong in both markets, companies in the
EU and the United States will be approaching their projects with very
different mindsets and datacentre needs -- an important distinction when
responding to customers. Another interesting difference is that a smaller
percentage of European companies are planning immediate expansions in the
next 12 months (17 percent in Europe vs. 34 percent in the U.S.), but the
percentages are nearly identical when you look out to 24 months. This
confirms our belief that the European market is about 18 months behind the
U.S. in its adoption of new facilities."



    Digital Realty Trust will present the full findings of this research
study at the Datacentre Dynamics London event on November 12-13, 2007. For
more information about this event, visit http://www.datacentredynamics.com.



About the Methodology

    Metrics reported in this study are based on Web-based surveys of IT
decisionmakers at large corporations in five European countries: the U.K.,
Germany, France, the Netherlands and Ireland. All surveyed companies in the
U.K., Germany and France have annual revenues of at least euro 1 billion
and/or at least 5000+ employees. Due to the smaller sample size of companies
in Ireland and the Netherlands that meet those criteria, surveyed companies
in those two countries have minimum annual revenue of euro 100 million. All
survey participants are directly involved in the process of managing
corporate datacentres, implementing new datacentres or expanding existing
datacentres. All participants were senior level executives, including CxOs,
in MIS, IS or Finance. The survey was conducted in September 2007 and the
sample size was 125.



About Digital Realty Trust, Inc.

    Digital Realty Trust, Inc. owns, acquires, develops, redevelops and
manages technology-related real estate. The Company is focused on providing
Turn-Key Datacentre(TM) and Powered Base Building(TM) datacentre solutions
for domestic and international tenants across a variety of industry verticals
ranging from information technology and internet enterprises, to
manufacturing and financial services. Digital Realty Trust's 67 properties,
excluding one property held as an investment in an unconsolidated joint
venture, contain applications and operations critical to the day-to-day
operations of technology industry tenants and corporate enterprise datacentre
tenants. Comprising approximately 12.0 million rentable square feet,
including 1.7 million square feet of space held for redevelopment, Digital
Realty Trust's portfolio is located in 26 markets throughout North America
and Europe. For additional information, please visit Digital Realty Trust's
website at http://www.digitalrealtytrust.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. Such forward looking statements include statements related to the
survey data obtained and growth in the European datacentre markets, survey
respondent's expansion plans and related statements, respondent's green
strategies, expected impacts of virtualization. These risks and uncertainties
include adverse economic or real estate developments in the Company's markets
or the technology industry; general economic conditions; defaults on or
non-renewal of leases by tenants; increased interest rates and operating
costs; inability to manage domestic and international growth effectively;
failure to obtain necessary outside financing; decreased rental rates or
increased vacancy rates; difficulties in identifying properties to acquire
and completing acquisitions at acceptable return levels; failure to
successfully operate acquired properties and operations; failure of acquired
properties to perform as expected; failure to successfully redevelop
properties acquired for such purposes or unexpected costs related thereto;
failure to maintain the Company's status as a REIT; environmental
uncertainties and risks related to natural disasters; financial market
fluctuations; changes in foreign currency exchange rates; risks of operating
in foreign markets; and 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
United States Securities and Exchange Commission, or SEC, including the
Company's annual report on Form 10-K for the year ended December 31, 2006, as
updated by subsequent reports on Form 10-Q and Form 8-K filed with the SEC.
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
    Chief Financial Officer and
    Chief Investment Officer
    Digital Realty Trust, Inc.
    +1-415-738-6500

    Pamela A. Matthews
    Investor/Analyst Information
    Digital Realty Trust, Inc.
    +1-415-738-6500

    Chris Crosby
    Sales & Technical Operations
    Digital Realty Trust, Inc.
    +1-214-231-1350





Web site: http://www.digitalrealtytrust.com