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Digital Realty's Unit Expands in Croatia & Madrid With Buyouts

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Digital Realty Trust, Inc.’s (DLR - Free Report) unit — Interxion — acquired Altus IT, the leading carrier-neutral data center provider in Croatia and a 3.6-acre land parcel in its Madrid campus.

Specifically, the buyout of Altus IT provides Digital Realty with a highly-connected data center, which was recently enhanced with the addition of network nodes of leading global cloud service providers. Moreover, the portfolio is well-connected, with access to more than 100 customers, around 50 connectivity providers and two important internet exchanges.

Moreover, Altus IT boosts Digital Realty's access to a global footprint of more than 700 connectivity providers spread over 280 data centers across 22 countries. Notably, the acquisitions highlight the company’s ongoing investment in PlatformDIGITAL — its global data center platform — that supports customers in their digital transformation strategies and complexities of the fast-growing demand for global coverage and additional capacity.

Per management, "Southeast Europe offers significant economic potential, and the acquisition of Altus IT represents an important step and our first gateway into that market. “

This aside, Interxion’s purchase of a land parcel in the Madrid campus is a strategic fit as it provides the company with future expansion opportunities in Spain’s most highly-interconnected data center campus. Markedly, the plot is less than a kilometer from Interxion’s existing data centers and will be used to build its fourth data center in Madrid’s technology zone known as Silicon Alley Madrid.

The plot can support a 35,000- square-meter facility, with up to 34 megawatts of capacity. The expansion project indicates Interxion’s confidence in the region’s strength as a digital hub.

Notably, data-center REITs are experiencing a market boom, with growth in cloud computing, IoT and big data, and an increasing number of companies opting for third-party IT infrastructure. The estimated growth rates for the AI, autonomous vehicle and virtual/augmented reality markets will remain robust over the next five to six years.

Moreover, data centers are poised to benefit from the rising reliance on technology in the wake of the coronavirus pandemic. Thus, data-center REITs like Equinix, Inc. (EQIX - Free Report) , CyrusOne Inc. and CoreSite Realty Corporation (COR - Free Report) will keep witnessing significant demand.

Such tailwinds have driven the 14.9% rally in shares of this Zacks Rank #3 (Hold) company over the past three months against the industry’s decline of 8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


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