Digital Realty – Wholesale Colocation and Interconnection Services

July 22, 2024
Digital Realty

Digital Realty is one of the leading global providers of data center and colocation services. Its portfolio includes 207 facilities in 41 markets. These include Internet gateway properties (also known as carrier hotels) and powered shell buildings that can be leased to tenants of their choice.

At MarketplaceLIVE in New York, the company unveiled PlatformDIGITAL, a broad initiative that sharpens its focus on problem-solving for enterprise customers retooling their IT infrastructure. The strategy is aimed at countering data gravity and enabling more diverse routing options.

Preview About Digital Realty

Digital Realty is an operator of data centers with a focus on wholesale colocation, in which tenants lease a suite of raised-floor space that may be configured to their specific needs. This contrasts with retail colocation, in which customers rent a cabinet or cage in a shared data center. Digital Realty operates more than 300 data centers globally, with nearly 40 million square feet of space.

With the acquisition of Telx, Digital Realty now offers a broad set of interconnection services alongside its traditional colocation offerings. The company also recently launched MarketplaceLIVE, an event to encourage business between colocation customers at its facilities. In addition to these new services, Digital Realty continues to expand its use of renewable energy at 2323 Bryan Street in downtown Dallas.

Digital Realty - Wholesale Colocation and Interconnection Services

The company is also making moves to expand its footprint in Europe. It has pounced on a chance to acquire Interxion, a European colocation provider, for $8.4 billion, which would give it a large presence in the region. The acquisition reflects the shift in IT architectures that place applications and workloads closer to data centers, which is a key theme of Digital Realty’s recent “manifesto.” The company also aims to make it easier for companies to access cloud service providers with its PlatformDIGITAL platform.

Safe Harbor Statement

Digital Realty is a leading provider of data center space and services. Its facilities are located in key markets across Europe, North America, and Asia. The company’s clients include technology and Internet enterprises, and telecommunications providers. The company’s facilities are powered by renewable energy and are designed to provide a high level of uptime for its customers.

Digital Realty recently launched a connectivity orchestration platform to make it easier for customers to connect disparate infrastructures. The service is available at 61 sites in the US and Europe. The platform is designed to help companies manage their hybrid architectures and reduce network costs.

In addition to expanding its connectivity offerings, the company is focusing on water stewardship and energy efficiency. The company has partnered with Nalco Water to optimize water use at its data centers. The company has also signed two long-term contracts to procure renewable energy for its data centers.

The company also has a deal to acquire Telx, a national provider of colocation and interconnection solutions. The transaction is expected to close later this year and is subject to customary closing conditions. The company will receive a total of approximately $1.886 billion in equity value.

What is Digital Realty?

Digital Realty is the world’s leading wholesale colocation and interconnection provider, with 210 data centers across five continents. The company provides colocation, power, cooling and security services to a diverse mix of customers that includes enterprises, cloud service providers, network operators and other data center users.

The company’s strategy is to focus on solving problems for enterprise customers that are retooling their IT infrastructure. In addition to its core colocation business, the company has expanded into interconnection by buying 365 Main and Telx. It has also announced plans to acquire Interxion, a European colo company that is known for its carrier-neutral interconnection platform.

As the demand for colocation services continues to grow, Digital Realty is increasing its capacity in many of its markets. It recently completed construction of new cabinets in its Ashburn, Virginia campus, and has increased its capacity at its Los Angeles facilities. In addition, the company has deployed redundant power and cooling systems in its facilities. This allows it to maintain uptime and deliver a seamless experience for its customers. This is especially important for businesses that depend on continuous connectivity.

What are the features of digital reality?

Digital Realty is the world’s largest wholesale colocation provider, providing data center services in 210 locations on five continents. The company offers a full range of colocation, powered shell, and private suite solutions. Its data centers are located along primary fiber routes and power grids, and provide access to multiple Internet and cloud service providers.

Its data centers feature advanced mechanical solutions such as rear door heat exchangers and dual-powered cooling, enabling power densities of up to 150 kilowatts per cabinet. This allows customers to deploy high-density applications such as AI and machine learning with confidence.

Digital Realty - Wholesale Colocation and Interconnection Services

The company also provides a variety of security and operational controls to support customer data protection. All of its facilities meet the NIST 800-53r5 Physical and Environmental Protection control families, with many of them also achieving FISMA or FedRAMP Moderate certifications. In addition, its facilities are interconnected through its network fabric to ensure customers have access to the global networks they need for their businesses to thrive. The company’s new platform strategy, called PlatformDIGITAL, aims to sharpen its focus on problem-solving for enterprise customers who are retooling their IT infrastructure.

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Final Words

The acquisition of Telx and its global network of carrier-neutral interconnection facilities expands Digital Realty’s colo bona fides and offers customers the opportunity to quickly provision dedicated connectivity in multiple metros. This unique offering helps data center users deliver on the promise of a seamless and secure internet connection with reduced latency across an extensive and diverse geography.

The deal also illustrates the blurring of business boundaries between wholesale and retail colocation as providers seek to become one-stop shops for IT infrastructure. This trend was highlighted by Equinix’s recent “manifesto” highlighting plans to encourage interconnection within its data centers in Europe through its xScale initiative.

In a press release, Digital Realty CEO Bill Stein indicated that Telx’s strengths in interconnection, cloud access and multi-tenant colocation “perfectly complement” those of Digital Realty. The company says that while Telx will continue to operate as a separate business, the two companies will integrate in the future to better meet enterprise data center needs up the IT stack. This will include enabling them to better support a wide range of hybrid IT architectures by providing direct connections to the leading public clouds.

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