GlobeSt.com: How does your strategy set you apart?

Foust: We saw the opportunity to invest in properties with computer data centers, properties that could provide mission-critical facilities 24/7. They would be for a range of tenants, whether they be corporate users or technology-oriented companies. These properties have a specialized infrastructure built for high-level and redundant power requirements as well as specialized, precision air-conditioning and fire-suppression systems. They are a separate asset class that has long-term value.

GlobeSt.com: What kind of assets fit your investment criteria?

Foust: Historically, we have invested in properties that were well-leased, income-producing assets that also had space in them already built out for previous tenants. Those spaces would serve as turnkey facilities we'd reposition for new users. Also in our buildings we have space that's more in a shell condition. Here we can create more customized solutions for tenants and work collaboratively with them to come up with a solution that is cost-effective and still meets their requirements.

GlobeSt.com: To what extent did the tech bust hamper your start-up?

Foust: Our strategy seemed contrarian at the time. We started investing in 2001 and we definitely went against the grain. But these facilities are strategic real estate that would continue to be important to the users. There's such a big infrastructure investment in these buildings, and they're very hard to replicate. That investment can be anywhere from $500 to $1,000 per foot to develop these properties, especially because the electrical engineering involved is so complex.

GlobeSt.com: What changes have taken place in the sector since the bust?

Foust: We're seeing demand growing rather quickly across many industry sectors--financial services, healthcare, Internet enterprises, communications, IT providers. They all have high demand for additional space. We're seeing a higher quantity of requirements and those requirements are growing in size. We're seeing data centers that are 20,000, 50,000, 100,000 sf and in some cases larger.

GlobeSt.com: What's the key requirement for making the niche work?

Foust: A real important factor has been attracting a team of technical experts in the data-center field--engineering, construction, data-center operations and a technology sales team focused on the users' IT department. Early on, we decided to make a big investment in that type of team, and that sets us apart from other real estate investors. We have experts in the field who can work with the tenants to determine the right property, the right location and the right set of engineering specs.

GlobeSt.com: No competition?

Foust: Foust: assets in a particular investment fund, but no one has made investments across the country in such a systematic way. You also need a certain scale to accommodate that significant investment in a professional staff, and that creates a barrier for folks coming in.

GlobeSt.com: We're seeing REITs trending into the private sector. What are your thoughts?

Foust: In many cases, in several asset classes, private capital will value properties in portfolios higher than the public market will. It's that private-capital-public-capital tension that's driving some of these mergers. For Digital, at this point we're focused on growing our business, and being public serves us very well in terms of effective access to capital, so we have no plans to change our status.

GlobeSt.com: So what are your growth plans?

Foust: We're certainly maintaining our acquisition pace here in the US, and we'd like to continue to expand into more of the active markets, such as the New York metropolitan market, Northern Virginia, Dallas and Phoenix. We've also seen a lot of demand in Silicon Valley. It really has come back, especially in terms of the higher-end, class A suburban office and our data-center niche, where there are single-digit vacancies.

GlobeSt.com: Any other growth plans?

Foust: We'll continue to invest in properties that are substantially leased, and we're looking to do more sale-leaseback business. It's an area where we can work with users and bring our capital to bear to expand operations where necessary. With the large amount of demand we're seeing and the lack of ready supply, we starting to acquire properties that are vacant or substantially vacant but have that special infrastructure.