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Digital Realty Unit Begins Paris Digital Park Construction

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Digital Realty Trust, Inc.’s (DLR - Free Report) recently-acquired unit — Interxion — has started building a major expansion project in Paris. This move will provide an impetus to the PlatformDIGITAL™expansion in France.

Referred as Interxion Digital Park, this new location has access to up to 85 megawatts (MW) of customer available power. Spanning an area of about 40,000 square meters, the site will house four data centers.

The first data center on this location, which also represents Interxion’s eighth in Paris, has been named PAR8. Being built in three phases, PAR8 will offer 9,600 square meters of equipped space and 19 MW of customer available power when fully constructed. The total capital expenditure, excluding land and other related costs, is projected to be €207 million.T he first phase of PAR8, which would likely offer about 3200 square meters, is slated to open in late 2021.

Being located near to the PAR7 facility, Interxion Paris Digital Park will gain from the network connectivity of its seven existing data centers which are all inter-connected.

The latest expansion in Paris seems a strategic fit because there is a solid demand for such facilities in Europe. The cloud and content platform providers have been expanding their presence continuously in major European cities.

Interxion, which recently concluded its combination with Digital Realty, already had a strong presence in the colocation and interconnection space in Europe, with business in more than 50 carrier-and cloud-neutral facilities across 11 countries and several metro areas, including Frankfurt, Amsterdam and Paris, as well as its Internet Gateway in Marseille.

Moreover, data-center REITs are likely to keep witnessing a solid demand for their facilities, with growth in cloud computing, Internet of Things (IoT) and big data, as well as an increasing number of companies opting for third-party IT infrastructure. Also, the estimated growth rates for artificial intelligence, autonomous vehicles and virtual/augmented reality markets will remain robust over the next five to eight years, giving significant impetus for growth to data-center REITs, including Digital Realty, Equinix, Inc. (EQIX - Free Report) , CyrusOne Inc. and CoreSite Realty Corp. (COR - Free Report) .

Over the past year, shares of Digital Realty have outperformed the industry it belongs to. Shares of this Zacks Rank #3 company have gained 21.2%, as against the industry’s decline of 9.3% during the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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