Data center wholesale provider Digital Realty has increased its Australian footprint by 7,500 sq m with the acquisition of a fully operational data center in Macquarie Park, Sydney – its second facility in New South Wales.
Digital Realty has never been shy about its intentions to expand its Australian presence. It already has 86,327 sq ft in Sydney’s Erskine Park and 96,133 sq ft in Deer Park in Melbourne, Victoria.
Last year, Digital Realty SVP and Regional Head for Asia Pacific Kris Kumar said high demand across the region has led the company to consider growth in all key Asia Pacific markets the provider already operates in, with Australia being a key market targeted for growth.
Japan has also been earmarked as a new destination for Digital.
The Macquarie Park facility, at 23-25 Waterloo Road will not only add new space, however, to Digital’s portfolio, it will also bring in a blue chip customer. It is already fully leased to global IT services and products supplier Fujitsu until 2016 under a long-term contract.
Digital Realty paid AU$11.75m for the facility.
“Macquarie Park is an established hub for high-tech companies operating in Sydney,” Kumar said.
“Along with our recently completed Turn-Key Flex data center at Erskine Park, this acquisition is one more step in our Australian expansion plans, demonstrating our commitment to this important Asia Pacific market.”
Turn-Key Flex is the company’s model for building out data center space for clients, which allows they to mix and match components according to need.
According to the Australian Financial Review, Australian Superannuation fund Australian Unity previously owned the facility.
Kumar told the publication it had previously built its own facilities in Australia due to a lack of suitable existing real estate to purchase.
Macquarie Park is close to Sydney’s Central Business District, and is also the site selected by Macquarie Telecom for its AU$60, Intellicentre 2 data center, which opened in July.
New York Stock Exchange-listed Digital Realty has made a number of acquisitions elsewhere in the world in the last year as it expands its footprint in new markets, as opposed to its traditional US base.
In July it completed the acquisition of 761,000 sq ft of data center space in London – purchased from UK group Sentrum which owns six sites across the country – and a 164,000 sq ft site in Hong Kong with colo provider Savvis which marked its entry into that market.
It is redeveloping the Hong Kong site to bring it up to enterprise-grade standard. The facility is expected to come online midway through 2013.
In November, Digital Realty also purchased a redevelopment property in New Jersey offering 15.75MW which will be targeted at the New York City market.