Monday, October 23, 2017

One of the USA’s largest southern data centres is about to become an infrastructure giant

A shell of 700,000 sqf, of which 300,000 sqf are already operational, is set to be filled up with more server halls.

QTS, one of the most active data centre real estate investment trusts (REIT) in the US today, is planning to expand its 300,000 sqf data centre in Dallas, Texas.

According to Dallas News, the company has put forward plans worth $78m to expand its hub in Las Colinas by building out two data halls within the existing 700,000 sqf shell and constructing a new data centre building.

The shell was bought by QTS back in 2013 from Maxim which used the site as a semiconductor manufacturing plant.

With the asset, QTS became also the owner of the 40-acre land plot owned by Maxim. The site is powered by an on-site 140MW dual-fed substation.

Other nearby data centres include CyrusOne Carrollton facility which amounts to 670,000 sqf and 60MW of power, Digital Realty’s Dallas 365,647 sqf data centre and Cyxtera’s two data centres comprising 263,700 sqf and 24MW of power.

Chad Giddings, QTS’s vice president of marketing, said: “Due to success in leasing our existing capacity in Irving, we are developing preliminary plans for adding capacity in land adjacent to our current site [in Las Colinas].”

QTS has recently released its financial results for Q2 2017 which saw a net income of $4.6m, a decrease of 20.6% compared to the second quarter of 2016.

Revenues hit $107.9m in Q2 2017, an increase of 9.3% compared to Q2 2016.

Chad Williams, Chairman and CEO of QTS, said: “We remain focused on building strength and capacity within QTS to continue to deliver valuable solutions for larger C1-hyperscale customers while executing on the strong growth opportunity with our C2 and C3 customers enabling their diverse hybrid IT strategies.”

The company is expecting 2017 year-over-year revenue growth to be at the low end of its previously provided range of 11 – 13%, due to lower than expected utility recovery revenue, which passes through directly to lower operating costs, as well as lighter leasing volume earlier in the year.