Digital Realty’s acquisition of DuPont Fabros creates a cloud colossus with 26 million SF of data center space, and a dominant market position in the two hottest markets: Northern Virginia and Chicago.
Digital Realty will acquire rival DuPont Fabros Technology (DFT), in a blockbuster $7.6 billion transaction that will boost its ability to serve the hyperscale data center market.
Developer DuPontFabros Technology (DFT) has just signed its largest deal yet, pre-leasing 28.8 megawatts of data center space across two major markets.
Ashburn, Virginia is the Internet’s boom town. Ashburn is seeing an unprecedented level of data center construction, and more is in the pipeline with three new players likely to enter the Northern Virginia market.
As cloud computing providers seek more and more data center capacity, they are pre-leasing entire data center buildings, prompting developers to adopt a build-to-suit model for these projects.
DuPont Fabros Technology said there has been strong interest in its New Jersey data center in Piscataway, N.J. and a sale could be completed in the third quarter. Bidders include both public and private data center companies.
The cloud builders continue to lease massive chunks of data space, boosting the fortune of major data center developers. In the latest megadeal, DuPont Fabros Technology has pre-leased 16 megawatts of space in Santa Clara.
Several wholesale data center providers unveiled plans this week to offer data halls with less backup power infrastructure than traditional data centers, which typically offer multiple levels of emergency power in the event of a utility grid outage.
Digital Realty plans to build up to 2 million square feet of new space in the heart of “Data Center Alley” in Ashburn, Virginia. Data center companies have bought up hundreds of acres of land for future development in northern Virginia, ensuring compute capacity for the clouds to come.