U.S. firm aims to complete the data center transactions in 2016
U.S.-based Digital Reality, which provides data center, colocation and interconnection solutions, entered into a definitive agreement with Equinix to acquire a portfolio of eight carrier-neutral data centers across Europe. Five of the data center facilities are located in London, two in Amsterdam and one in Frankfurt, Germany. The total value of the transactions is approximately $874 million, Digital Realty said.
Under terms of the agreement, Digital Realty will acquire a fee interest in one data center in Amsterdam and will acquire leasehold interests in the other seven data centers, with a weighted average remaining lease term of approximately 23 years.
“The acquisition of this portfolio of eight highly attractive facilities will enhance Digital Realty’s strong global presence and offer us even greater scale on the increasingly important European data center landscape,” said Digital Realty CEO William Stein. “We have made several recent strategic investments in Europe, and this new portfolio, which is concentrated in three of the most strategically important data center and interconnection hubs in Europe, will immediately bring on board a large, diversified customer base and will also provide significant opportunities to grow and extend our footprint across the continent for years to come.”
Digital Realty said the eight European data centers contain approximately 213,000 net sellable square feet and currently serve more than 650 “blue chip” clients predominantly concentrated in the network; cloud and IT services; content and digital media; and financial services verticals. Digital Realty expects the acquisition to be fully completed in the second half of 2016, with the deal subject to customary closing conditions, including approval by the European Commission.
Digital Realty said it currently provides data center and colocation strategies to more than 1,000 firms across its portfolio of data centers located throughout North America, Europe, Asia and Australia.
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Tele2 Russia to launch 450 MHz LTE test
In other EMEA news, Russian mobile operator Tele2 is set to launch a LTE network trial using the 450 MHz spectrum band in the Tver region. The network is set for launch May 27.
The telco, partially owned by state-owned telecom firm Rostelecom, said it plans to launch LTE services through the 450 MHz band in Moscow, St. Petersburg, Leningrad and Novgorod. The telco initially launched LTE services in June 2013, and currently offers service though spectrum in the 800 MHz, 1800 MHz and 2.6 GHz bands.