Alliance Formed for Data Center Builds

The centers in question would be financed, designed and built by the alliance, with clients entering into long-term leases with the partnership once the projects are completed. "We liked the idea of using our financial capabilities to provide financing to companies that need new data centers, but didn't want to deploy their own capital or draw from operating budgets to get them built," comments KDC's senior vice president and data center development expert Ab Atkins, in an interview with GlobeSt.com.

And Atkins says that need for such data centers is growing, despite the current sluggish economy. More companies have become Internet-based, he notes, raising the demand for dedicated data centers. The paradox, he goes on to say, is that the demand for the product has increased, along with the barriers to entry. "Capital constraints in the current market make it difficult for a lot of potential competitors to get into the business," Atkins explains.

Building a data center isn't something that someone just goes and does. There are different costs involved, not to mention special uses of the assets and their needs. Digital Realty Trust provides that information and experiences, Atkins comments. Furthermore, Digital Realty Trust's corporate culture fits well with that of KDC's, he adds.

"We're talking to companies nationwide right now, that vary by industry, demand and requirements," Atkins says. He says he's not in a position right now to discuss potential deals or locations, but did acknowledge that there has been huge interest in what the partnership can provide.