Digital Realty Trust: Digital Realty gets $1.1 billion, sells Texas and Illinois data facilities

Jun 07, 2023 | Posted by Abdul-Rahman Oladimeji

Digital Realty, a US data center company, has had an eventful week raising money and selling data centers. The company announced that it had raised over $1 billion through the sale of shares, with the money going to be used for expansion and debt reduction. Digital is selling the vast majority stake in a pair of data centers outside Chicago, Illinois, and its entire stake in an unnamed non-core data center in Texas. In addition, Colin McLean has been chosen by the business to succeed Corey Dyer as chief revenue officer.

The company announced this week that it had raised around $1.1 billion from selling roughly 11 million shares granted under its at-the-market (ATM) scheme, including 3.5 million shares to be issued subject to future sales agreements. Digital Realty intends to use the proceeds from selling assets and ATM issuance to settle down debt and finance ongoing and future investment efforts. 

This week, Digital Realty announced the sale of a non-essential data center in Texas. The company reported net proceeds of approximately $150 million from selling its entire stake in the data center. The only information provided was that the facility was bought in 2012 and rented as a powered shell center. In 2012, Digital Realty purchased the Convergence Business Park in the Lewisville neighborhood of Dallas, 400 South Akard Street in Dallas, 8025 North Interstate 35 in Austin, and other properties. A deal between Digital Realty and its Singapore-listed Digital Core REIT to purchase 1215 Integrity Drive in Richardson last year fell through.

The corporation intends to construct new Texas facilities in the Dallas suburbs of Lewisville and Garland.

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