Digital Realty Doubles Down on Cloud Service With DuPont Fabros Merger

Posted by Instor on Jun 9, 2017 2:02:49 PM

Big news in the data center space, as Digital Realty acquires fellow data center operator DuPoint Fabros in a deal valued at $7.6 billion. Learn more about Instor's partnership with Digital Realty and hear from our President Jack Vonich. 


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Instor Partner Digital Realty Acquires DuPont Fabros

Instor partner Digital Realty has purchased data center operator DuPont Fabros for $7.6 billion, it was announced today.

The move comes as the need for cloud-based providers has risen exponentially in the past few years. The merger will give Digital Realty the ability to serve more data centers in top U.S. metropolitan areas. It also puts Digital Realty in a position to expand is hyper-scale product offerings to its blue chip customer base.

According to a press release from the company, the offer is valued at $63.60 per share. Both companies saw shares of their stock rise in pre-trading hours on Friday, thanks to the announcement.

Based in Washington, D.C., DuPont Fabros owns a dozen data centers in U.S. and Canadian markets, while Digital Realty has 156 in its arsenal.  

Since 2014, Digital Realty and Instor Solutions have been partners in the data center space, with Instor tapping into its Data Center Fit Up program to prep Digital Realty’s wholesale data centers to make them equipment ready for seamless hardware installs. As an official contractor, Instor also assists Digital Realty with rack installs, electrical support, remote power, data center containment and other key infrastructure elements.

Instor President Jack Vonich underscored the importance of today’s deal by saying it will allow Instor to serve an even broader array of customers throughout North America.

“Digital Realty’s acquisition of DuPont Fabros really makes sense on a lot of fronts, especially with DLR’s focus on cloud and large enterprise market segments,” Vonich said. “Digital Realty continues to build its dominance in the data center marketplace and we couldn’t be more proud to be partners with them.”

Past projects Instor has assisted Digital Realty with include a 10,000 square foot data center in Santa Clara, California, a 14,000 square foot center in Ashburn, Virginia and 15,000 square feet of space in Franklin Park, Illinois. 

Digital Realty CEO William Stein said the deal could help his company realize up to $18 million in annual overhead savings. He also said Digital Realty would use bridge financing from Bank of America/Merrill Lynch and Citigroup to complete the deal. No date has been set for the close.



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