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QTS buys two facilities in the Netherlands for $44 million 20/9/2019

QTS buys two facilities in the Netherlands for $44 million

Qualified Teacher Status (QTS) China Realty Trust acquired two data centers in the Netherlands from TCN sig Telehousing BV for $44 million.The data centers in Groningen and Eemshaven, both northeast of Amsterdam, have a total power capacity of 30MW.

QTS have said that it plans to spend an additional $15m on recommissioning the two facilities, bringing the total cost per MW for the two facilities to $2m.

The Groningen data center operates at 10MW of power over 45,000 square feet of raised floor data center space. Currently, this facility has 20 colocation tenants with an average remaining tenant lease term of 3.5 years.

The company’s Eemshaven facility, which is currently vacant, was originally constructed to support a single hyperscale tenant and is capable of 20MW of power over 113,000 square feet (10,500 sq m) of raised floor data center space.

QTS say they are already in preliminary discussions with multiple potential anchor tenants for the facilityEemshaven is also home to Google’s $1.16bn data center, which the tech giant is further expanding with a $950m investment.

Chad Williams, Chairman and CEO of QTS, said: “The European market has experienced a significant rise in demand, with 2018 representing a record year of absorption across the four largest European markets. This acquisition advances our global expansion strategy and provides a platform for future growth internationally at a significantly de-risked entry point.”

In February, QTS entered into a joint venture with Alinda Capital to fund hyperscale projects and infrastructure assets.

The investment firm said that it is willing to contribute up to $500 million in equity capital to QTS over the next five years. In total, the firm could provide up to $1 billion of funding to support QTS’ hyperscale ambitions.

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