Data Center Firm Digital Realty Acquires San Francisco, Atlanta Data Centers

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Data center firm Digital Realty announced on Wednesday that it has acquired a data center in San Francisco for $85 million, and a data center in Atlanta for $63 million.

These acquisitions come on the heels of Digital Realty’s appointment of David Schirmacher senior vice president of technical operations.

“These acquisitions continue our strategy of investing in institutional quality data center facilities at attractive, risk-adjusted returns for our shareholders,” Scott Peterson, chief acquisitions officer for Digital Realty said in a statement. “The 360 Spear Street property adds a highly strategic asset, which abuts our 365 Main Street colocation facility in downtown San Francisco. While fully-leased today, this property has the potential to provide future expansion space for our colocation customers.”

In addition to 365 Main Street and 360 Spear Street, Digital Realty has a data center at 200 Paul Avenue, just south of downtown San Francisco. While Spear Street is fully leased, there is still availability in its Main Street and Paul Avenue data centers, according to its website.

The Atlanta acquisition was structured as a sale leaseback transaction with the previous owner, a US-based airline, and is located adjacent to the Hartsfield-Jackson Atlanta International Airport. According to the press release, the airline will continue to occupy approximately 167,000 square feet of 344,000 square feet under a new ten-year lease agreement with Digital Realty. The balance of the facility is leased on a long term basis to a provider of critical transaction processing solutions to companies operating in the global travel industry.

“The property in Atlanta adds a world-class facility with quality corporate customers to our global portfolio,” Peterson said in a statement. “We believe that our investment management approach to acquiring, developing and operating data center facilities will continue to provide both our customers and our shareholders a long-term platform for growth.”

Digital Realty’s 100 properties cover about 17.9 million square feet. Its portfolio covers 32 markets throughout Europe, North America, Singapore and Australia.

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