The Blackstone acquisition of QTS Realty for $10 billion is the biggest deal yet for the data center industry. On the DCF Show podcast, Rich Miller discusses what the Blackstone-QTS deal means for data center M&A, and what comes next.
QTS Data Centers
QTS Data Centers are masters of retrofitting industrial facilities and transforming them into state-of-the-art data fortresses. Their ability to renovate buildings in infrastructure rich areas makes them cost-efficient while delivers their 3 C’s: cloud, colocation, and custom data centers.
Headquarters: Overland Park, KS
Blackstone Infrastructure Partners will acquire QTS Realty Trust for $78 a share, valuing QTS at approximately $10 billion, the two companies said today. QTS operates more than 7 million square feet of data centers across North America and Europe.
Data center developers are scrambling to add capacity, as this year’s record leasing activity has consumed much of the available supply of server space. Several leading markets are seeing a boom in construction.
Data center activity is accelerating in the Greater Atlanta market, with strong leasing in the third quarter by QTS Data Centers and Switch, and a substantial expansion by Facebook.
The data center sector’s growing focus on sustainability was on display in the EPA Green Power Leadership Awards, which honored Microsoft, Equinix and QTS Realty Trust.
Recently the Waffle House business turned to colocation, through provider QTS, to achieve its IT and data infrastructure needs. These include, according to the QTS, extended value over what could be achieved internally, quick delivery in terms of risk exposure, better resource allocation and more. The full report, “Data Center Services: A Story of Build Versus Buy,” courtesy of QTS, explores the decisioning process to keep data services internal, or whether to use a colocation provider.
Rising rack densities and liquid cooling were the focus of the most popular stories on Data Center Frontier in November, along with the impact of data gravity and strategic moves by Digital Realty and QTS.
Projects like the IEIC (Internet Ecosystem Innovation Committee), of which QTS is a member, work to “stimulate transformation, regional economies and internet infrastructure growth globally,” and are designed to deemphasize the heavy reliance of the current concentrated, congested peering points. A new white paper from QTS, “QTS Peering and Data Exchange,” explores how companies can help the industry proliferate the number of buildings where internet and content networks can exchange traffic and do so in a neutral and open way.
QTS Realty has signed a 12-megawatt lease with a hyperscale customer, which will become the anchor tenant in a new data center building on the company’s Metro Atlanta campus.
Should you still be in the data center business? That’s the first question asked in a new report from QTS that explores the risks of the on premises data center, and the growing number of colocation offerings available.