QTS Announces 24 Megawatt Lease with Global Cloud-Based Software Company
Overland Park, Kan. (March 2, 2018) - QTS Realty Trust (NYSE: QTS), a leading provider of software-defined and mega-scale data center solutions, today announced that it has signed a 24 megawatt data center lease with a global cloud-based software company. As part of the lease agreement, the customer will lease the full 24 megawatt powered shell up front. The customer will also lease approximately five megawatts of turn-key data center capacity within the shell upon lease commencement. The customer is expected to sign future commitments, scaling to the full 24 megawatts of turn-key power capacity over approximately two years. The initial lease is expected to commence in the first quarter of 2019.
In conjunction with the deal signing, QTS has closed on the acquisition of 61 acres of undeveloped land in Manassas, VA that will support this deployment. Ultimately, QTS believes the site can support a total of more than 85 megawatts of gross power. This powered shell approach and gradual turn-key development enables QTS to support this customer's needs within a disciplined capital plan. Development capital expenditures associated with the new development in Manassas were factored into the Company's recently provided capital expenditure guidance for the full-year 2018.
"QTS is pleased to expand our support of one of the world's leading software companies," said Chad Williams, Chairman and CEO - QTS. "This announcement reinforces our ability to execute on one of the Company's core strategies and serve as a strategic partner to the world's largest and fastest growing technology companies. The Hyperscale vertical is a key component to the data center ecosystem and a foundational part of QTS from the very outset."
QTS recently announced a strategic plan to realign its business around its two primary drivers of demand, Hyperscale and Hybrid-Enabled Colocation. The Hyperscale vertical has been a focus of QTS since its inception enabled by the Company's mega data center infrastructure, innovative technology and expertise. This lease signing represents a significant accelerant to QTS' momentum within Hyperscale.
The land purchase in Manassas, VA, combined with the recently announced 52 acres of land in Ashburn, VA and QTS' existing Vault campus in Dulles, VA provides significant capacity to support the Company's ongoing growth in the nation's largest Tier 1 data center market.
QTS Realty Trust, Inc. (NYSE: QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 6 million square feet of owned mega scale data center space throughout North America. Through its software-defined technology platform, QTS is able to deliver secure, compliant infrastructure solutions, robust connectivity and premium customer service to more than 1,100 leading hyperscale technology companies, enterprises, and government entities. Visit QTS at www.qtsdatacenters.com, call toll-free 877.QTS.DATA or follow on Twitter @DataCenters_QTS.