Data Center Provider REITs Offer Attractive Investment Vehicles

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Data Center Provider REITs Offer Attractive
Investment Vehicles
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Data Center Provider REITs Offer Attractive
Investment Vehicles

• REITs have become new option for investors
  looking for income and tax advantages
• Traditionally REITs focused on commercial real
  estate ownership
• Investors are looking for higher dividends and at
  non-traditional real estate ownership, which
  opens up to new opportunities
• Through data center provider REITs, investors can
  take advantage of significant diversification
• Broadening scope of available options, investors
  get better returns

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Data Center Provider REITs Offer Attractive
Investment Vehicles

• High Growth on the Horizon for Data Center
  Providers
• Providers are expected significant growth in
  coming years
• New technologies, services and market dynamics
  fuels this growth
• Cloud computing has moved from marketing hype to
  legitimate business solution
• Survey shows, CIOs will adopt cloud strategies in
  coming year
• 40 of corporate executives have deployed cloud
  technologies in 2012
• Another driver is data storage

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Data Center Provider REITs Offer Attractive
Investment Vehicles

• High Growth on the Horizon for Data Center
  Providers
• According to 451 Research Group, over 2.33
  billion people were on the Internet as of January
  2012. Over one trillion smartphones were in use
  at same time and 500 million new smartphones are
  added each year
• Other findings from research ninety percent of
  digital data created within past two years
  approx nine million servers are purchased
  worldwide each year Facebook alone manages
  approx 25 Terabytes of data daily
• Mobile media will impact growth very
  substantially. Access to data and applications
  will create additional demand for data center
  provider services

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Data Center Provider REITs Offer Attractive
Investment Vehicles

• Why Wont Companies Build their Own Data Centers?
• Technologies are often proprietary, outdated and
  cant accommodate new architectures. Older
  platforms lack power capabilities to function in
  todays high density data center
• Updating of building a companys data center
  costs millions. Enterprises pay much lower, fixed
  monthly operating expenses
• Leased space from multi-tenant data center
  provider reduces risk, gets latest technologies,
  scales operations as needed, implement disaster
  recovery plan, brings products to market quicker

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Data Center Provider REITs Offer Attractive
Investment Vehicles

• Investing in Data Center Provider REITs
• Research findings predict positive growth outlook
  for data center providers
• According to 451 Research Group, demand for North
  American multi-tenant data storage has grown
  exponentially
• Predictions from 2010 to 2014 show market size
  estimated to increase by 18.65 compound annual
  growth rate (CAGR). Growth suggest data center
  REITs have higher probability experiencing
  reliable dividends

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About the author

• Scott Brueggeman is Chief Marketing Officer for
  CyrusOne, a global enterprise colocation provider
  operating 23 highly secure data centers across
  the United States, London and Singapore. Learn
  more about Data Center Provider Services by
  visiting http//www.cyrusone.com/.