QTS Renews Leases Representing 19 Megawatts with Two Hyperscale Anchor Tenants in Atlanta-Metro Data Center
Overland Park, Kan. (March 15, 2018) - QTS Realty Trust (NYSE: QTS), a leading provider of software-defined and mega-scale data center solutions, today announced that it has signed lease extensions with two hyperscale anchor tenants in its Atlanta-Metro data center. The two leases represent 19 megawatts (MW) of aggregate capacity and were signed at pricing levels above pre-renewal rates.
The renewals include a lease extension with a hyperscale tenant that was previously discussed in conjunction with QTS' fourth quarter 2017 earnings results. These two lease extensions together account for a significant portion of the total C1-Custom Data Center annualized rent that was subject to a lease scheduled to expire in 2018 as of the end of the fourth quarter 2017. These two lease renewals, combined with leasing activity year-to-date through March 14, 2018, extend QTS' weighted-average remaining C1-Custom Data Center lease term to approximately 48 months, pro forma as of December 31, 2017.
"We are pleased to continue to support the data center requirements of two of the world's leading technology companies," said Tag Greason, EVP - Hyperscale. "The Atlanta market remains a key destination for hyperscale customers. We expect the combination of our significant power cost advantage in Atlanta and future growth capacity enabled by our mega scale data centers will continue to provide strategic growth opportunities within the hyperscale vertical."
At nearly 970,000 gross square feet, QTS' Atlanta Metro data center is one of the ten largest data centers in the world and through adjacent owned land has the capacity for meaningful incremental expansion. The facility supports approximately 235 customers across a diversified mix of industry verticals, 2,000+ cross connects and access to over 150 carriers, networks and cloud service providers, making it one of the most strategic, interconnected data centers in the Southeast region. The site includes one of the largest pre-positioned, data center-owned substations in the country with 120 megawatts of transformer capacity built directly into Georgia Power's power grid. This enables QTS to deliver, it believes, the lowest cost of power to its customers in the Atlanta data center market at less than 4 cents per kilowatt hour.
These two lease renewals in the Atlanta market support continued momentum for QTS within the hyperscale vertical. Recently, QTS announced a new 24 megawatt data center lease with a global cloud-based software company in Manassas, VA. This lease represents the expectation of a full 24 megawatts of incremental demand from a long-term, existing QTS customer. The hyperscale vertical has been and will continue to be a growth opportunity for QTS given the Company's focus on developing mega scale data centers in strategic markets.
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.