QTS Realty Trust, Inc., an Overland Park, Kansas-based real estate investment trust that invests in carrier-neutral data centers and provides colocation and peering services, as per recent reports this week, has announced acquiring two operational data center facilities in the Netherlands. Reports are that the two recently acquired facilities – totaling around 30MW in current built-out – have been acquired for a price of $44m, which also includes the associated closing costs, from TCN SIG Telehousing BV.
The Kansas-based QTS currently anticipates an additional capital investment of around $15m that will go into these facilities to recommission them and bring them to fully up and running status. With this additional investment included along with the initial purchase price, QTS claims that this translates an up-front cost of $2m per megawatt, which as per QTS is still “materially below the average cost to build in the Netherlands market.”
“The data center industry has increasingly become a global business, particularly among our target hyperscale customers. The European market, in particular, has experienced a significant rise in demand, with 2018 representing a record year of absorption across the four largest European markets,” stated Chad Williams, chairman, and CEO of QTS. “This acquisition advances our global expansion strategy and provides a platform for future growth internationally at a significantly de-risked entry point. Acquiring strategically located facilities at a competitive price aligns with our overall growth strategy and has clear long-term benefits for our customers and shareholders.”