Data centre provider Digital Realty eyes M&As, partnerships for Asia growth

Data centre interior.

Digital Realty Trust Inc., a global provider of data centers, will rely on acquisitions, partnerships and the expansion of its own network in Asia as it seeks to boost its presence in the region.

“Asia is a fragmented market so consolidation should happen because you get natural economies of scale,” Krupal Raval, chief financial officer for Asia Pacific at Digital Realty, said in an interview in Singapore this week. “We have a balance sheet capacity where we have the ability to do acquisitions, but it depends on the price and willing sellers. Asia is the least mature of all the markets so there is an opportunity for both pure organic growth and acquisitions.”

Digital Realty, which owns one of the largest real estate investment trusts in the U.S., is seeking to expand in its core Asia markets of Japan, Australia, Singapore and Hong Kong and would like to enter countries such as China and India. It currently has eight data centers in the region, and in terms of potential acquisition targets, it looks for those with the right locations, building quality and the opportunity to build client relationships.

The San Francisco-based company currently derives 76 percent of its revenue from its U.S. business. It sees the potential for Asia’s revenue contribution to reach double digits from the current 7 percent.

Digital Realty, which is listed in New York, has explored a possible Asian data center REIT but found that multiples in Asia are inferior to the ones it trades at, Raval said. Though there is a lot of investor interest it doesn’t have plans for such a move yet, he said.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.