The latest news on one of the industry's fastest growing data center companies.
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QTS 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.
QTS 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.
"Today we are launching a restructuring plan to position QTS for accelerated future growth by re-focusing our organization around the two primary drivers of demand in our business, Hyperscale and Hybrid Colocation," said Chad Williams, Chairman and CEO - QTS. "In addition, by simplifying our business and cost structure we anticipate achieving a meaningful increase in our profitability and long-term value for shareholders."
Company has agreed to acquire a total of 52 acres of land in Ashburn, Virginia in two parcels for a total purchase price of $53 million. The first parcel, representing 24 acres and a $17 million purchase price, closed during the third quarter of 2017. The second parcel, representing 28 acres and a $36 million purchase price, closed subsequent to the end of the third quarter of 2017. The combined site is located adjacent to QTS’ existing Vault campus in Dulles, Virginia, and provides significant capacity to support the Company’s ongoing growth in the nation’s largest Tier 1 data center market. In addition, the combined land parcels enhance the company’s strategic options in the Northern Virginia market where available land for development has become increasingly scarce. QTS believes the new combined site can ultimately support a total of more than 700,000 square feet of raised floor capacity and 140 megawatts of gross power.
QTS’ Irving hyperscale customer is executing on its plan to incrementally increase its capacity. The company initially selected QTS in 2016 to deliver on its hyperscale growth strategy and is now expanding by an additional two megawatt HyperBlock with the option to scale by an additional two megawatts over time.
The Internet of Things, artificial intelligence, machine learning, and online retailing are driving demand for increased computing power and capacity. Large enterprises and public cloud providers, known as hyperscale companies, are constantly monitoring the need to scale with additional capacity quickly and affordably. While some hyperscale companies are consuming significant concentrated megawatt deployments, QTS has seen a trend toward hyperscale companies taking multiple small block deployments over a period of time to reduce risk and increase agility.