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Digital Realty (DLR) Unit Opens 12th Data Center Near Paris

Digital Realty (DLR) unit's boosting of its data center presence in the Paris region positions it well to gain from the rising trend of enterprises sc...

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Digital Realty Trust, Inc.'s DLR unit — Interxion — announced the expansion of its global data center platform with the opening of a new facility to the east of Paris. It is expected to help the company capitalize on the rising trend of enterprises scaling up their digital business.

Referred to as PAR12, this new facility is Interxion's 12th data center in the French capital region. It is slated to provide up to 12 megawatts of IT load capacity. Plus, it would offer eight data halls providing more than 690 square meter of new colocation facilities. The data center will help customer deploy network hubs on PlatformDIGITAL, the company’s flagship global data centre platform, for scaling digital business.

Located in Ferrières-en-Brie, this new development marks the third hub in the Paris region for Digital Realty, and complements the two existing data center hubs in the north and south of Paris. It will cater to the rising demand of cloud service providers seeking to improve the resilience of their services.

Per Interxion's management, "It will also allow companies in the east of France to improve the resilience of their infrastructure by being located close to Paris, while being connected to a high-performance low latency network.”

The expansion of its footprint in Paris is a strategic fit for Digital Realty, with the Ile-de-France capital region emerging as a centre of attention for French digital business efforts. In fact, data gravity intensity in Paris will more than double annually through 2024, per the company’s Data Gravity Index DGx™.

Demand for space at data-center REITs’ properties has been shooting up on growth in cloud computing, Internet of Things, artificial intelligence and big data, and an increasing number of companies opting for third-party IT infrastructure.

The heightening reliance on technology in the wake of the pandemic has now become an added advantage, thanks to the work-from-home trend, and e-retail and e-learning gaining popularity, spurring demand for data-center spaces. Data-center landlords, including Digital Realty, Equinix EQIX, CyrusOne Inc. CONE and CoreSite Realty Corporation COR, are likely to continue witnessing substantial demand.

Given the solid growth prospects of the data-center real estate market, Digital Realty is expected to continue facing stiff competition from existing players as well as the entry of new players. Amid this, there is likely to be aggressive pricing pressure in the data-center market.

- Zacks

In the past three months, the company’s shares have gained 8.1%, outperforming the industry’s rally of 6.8%.

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Digital Realty currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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