We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Digital Realty (DLR) Expands in Toronto With New Facility
Read MoreHide Full Article
Digital Realty Trust, Inc. (DLR - Free Report) recently unveiled its third data center in Toronto. The move further expands the company’s presence in the fourth largest city in North America which is also the financial and business capital of Canada.
The latest 46-megawatt facility, situated on the former Toronto Star Printing Plant site at One Century Place in Vaughan, Ontario, enjoys proximity to downtown Toronto, major highways, and an international airport. With 23 computer rooms, this facility can house power capacities from one to three megawatts per room.
The expansion in Toronto is a strategic fit for Digital Realty as the capital city is home to several financial and technology companies, as well as emerging tech start-ups that are making significant strides in digital transformation, and require reliable provisioning of IT services and capabilities. Ranking among the top technology clusters in North America, Toronto has more than 15,000 technology companies along the Toronto-to-Waterloo corridor. Moreover, the city’s diverse population is growing rapidly, thereby offering bright prospects for Digital Realty.
Data-center REITs are expected to continue experiencing a boom market with growth in cloud computing, Internet of Things and big data and an increasing number of companies opting for third-party IT infrastructure. Also, the estimated growth rates for the artificial intelligence, autonomous vehicle and virtual/augmented reality markets will remain robust over the next five to eight years. These factors, along with an improved outlook for economic growth, are anticipated to give significant impetus for growth to data-center REITs, including Digital Realty, Equinix, Inc. (EQIX - Free Report) , CyrusOne Inc. and CoreSite Realty Corporation (COR - Free Report) .
Specifically, Digital Realty is poised to benefit from the stellar demand for data centers, as well as accretive acquisitions and development efforts. In addition, the company’s solid operating platform and healthy balance-sheet position enabled it to hike dividend in March.
However, the company faces intense competition in the industry. Amid this, aggressive pricing pressure is also likely to continue in the upcoming period. Furthermore, the company has a substantial debt burden and hence, rate hike adds to its woes.
However, the stock has inched up 0.2% over the past three months compared with the industry’s rally of 2.6%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Digital Realty (DLR) Expands in Toronto With New Facility
Digital Realty Trust, Inc. (DLR - Free Report) recently unveiled its third data center in Toronto. The move further expands the company’s presence in the fourth largest city in North America which is also the financial and business capital of Canada.
The latest 46-megawatt facility, situated on the former Toronto Star Printing Plant site at One Century Place in Vaughan, Ontario, enjoys proximity to downtown Toronto, major highways, and an international airport. With 23 computer rooms, this facility can house power capacities from one to three megawatts per room.
The expansion in Toronto is a strategic fit for Digital Realty as the capital city is home to several financial and technology companies, as well as emerging tech start-ups that are making significant strides in digital transformation, and require reliable provisioning of IT services and capabilities. Ranking among the top technology clusters in North America, Toronto has more than 15,000 technology companies along the Toronto-to-Waterloo corridor. Moreover, the city’s diverse population is growing rapidly, thereby offering bright prospects for Digital Realty.
Data-center REITs are expected to continue experiencing a boom market with growth in cloud computing, Internet of Things and big data and an increasing number of companies opting for third-party IT infrastructure. Also, the estimated growth rates for the artificial intelligence, autonomous vehicle and virtual/augmented reality markets will remain robust over the next five to eight years. These factors, along with an improved outlook for economic growth, are anticipated to give significant impetus for growth to data-center REITs, including Digital Realty, Equinix, Inc. (EQIX - Free Report) , CyrusOne Inc. and CoreSite Realty Corporation (COR - Free Report) .
Specifically, Digital Realty is poised to benefit from the stellar demand for data centers, as well as accretive acquisitions and development efforts. In addition, the company’s solid operating platform and healthy balance-sheet position enabled it to hike dividend in March.
However, the company faces intense competition in the industry. Amid this, aggressive pricing pressure is also likely to continue in the upcoming period. Furthermore, the company has a substantial debt burden and hence, rate hike adds to its woes.
Currently, Digital Realty has a Zacks Rank #3 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, the stock has inched up 0.2% over the past three months compared with the industry’s rally of 2.6%.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>