Leveraging Successful Global Data Centre

Business Models for the benefit of Hong Kong

26 September 2011

1

Digital Realty Trust

Our data centres enable

customers to deliver critical

business operations.

We do this by providing enterprise

customers with secure, reliable and

cost effective data centre facilities

and services.

We are focused on investing in and acquiring, developing,

managing and operating data centre facilities to support

our customers’ needs while providing risk-adjusted returns for our

shareholders.

2

Global Platform for Growth

Portfolio totals 97 assets comprising 17.2 million square feet, including 2.2 million square feet of space held for redevelopment.(1)

Portfolio is located in 30 markets throughout North America, Europe, Singapore and Australia.(2)

(1) As September 6, 2011.

(2) Includes land parcels to be developed.

3

Customer Diversification

(4)

Major Customers

Percentage of

Annualized

Revenue

CTL (Qwest / Savvis) 10.6%

Equinix 4.2%

Facebook 4.1%

Telx 3.6%

Morgan Stanley 3.5%

NTT 2.6%

AT&T 2.4%

Softlayer Technologies 1.8%

Level 3 / Global Crossing 1.8%

Amazon 1.8%

Total 36.4%

(3)

No single customer accounts for more than 10.6% of annualized revenue

Customer Type by Percentage of Annualized Revenue

4

DIGITAL REALTY TRUST

Our Typical Customer Landscape

Corporate Enterprise Users

Colocation &

Managed Service Providers

System Integrators

Provide space, power, connectivity and services

Outsourced IT solutions for corporate enterprises

May provide network cross-connects & peering, and/or cloud/grid computing services

Shorter term contracts of 1-2 years for colo

Operate owned and leased assets

Mission-critical IT applications

Trend to consolidate data centers from “server closets” in office buildings

Operate owned and leased assets

International Network & Telecom Providers

Providing bandwidth/network access to Internet for enterprise customers

Consisting of telecom companies, data carriers, wireless providers, and Internet Service Providers (ISPs)

Primarily located in Internet Gateway data centers

5

North America Europe Asia

New York London Hong Kong

Silicon Valley Frankfurt Tokyo

Northern Virginia Amsterdam Singapore

Chicago Paris Sydney

Dallas Melbourne

Los Angeles

Hong Kong Multi Tenant Data Center Utilization Rate

Singapore Multi-Tenant Data Center Utilization Rate Sydney Multi Tenant Data Center Utilization Rate

Increased Utilization Rates Will Drive Data center Expansion

Top Global Multi-Tenant Data center Markets

99

94

89

84

80

70

80

90

100

2009 2010 2011 2012 2013

(%)

9896

94

88

83

70

80

90

100

2009 2010 2011 2012 2013

(%)

99

96

9289

83

70

80

90

100

2009 2010 2011 2012 2013

(%)

Source : Tier 1 Research, Multi Tenant DC Supply 2010 Report: Mid Year Update

6

Top DLR Investment Markets

U.S. Europe Asia/Pac

New Jersey London Singapore

Northern Virginia Paris Sydney

Silicon Valley Amsterdam Melbourne

Dallas Dublin

Phoenix

Boston

Potential Market for expansion: Hong Kong

Note: As of September 6, 2011.

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$612 $603

$910

$730

$836

$615

$1,639

$746

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2004 2005 2006 2007 2008 2009 2010 2011

Equity Preferred Debt

Consistent Access to Capital

Capital Raised ($ millions)

DLR has raised approximately $6.7 billion of capital from 2004 through Aug 2011

8

Variable Rate Debt4.1%

Fixed Rate Debt28.3%

Preferred3.6%

Equity64.1%

DLR Employs a Conservative Capital Structure

Weighted average cost of debt: 5.13%; 88.9% fixed

rate debt

Leverage ratios :

Net Debt / Total Enterprise Value: 31.1%

Net Debt / LQA Adj. EBITDA: 4.9x

Coverage ratios(4) :

Debt service: 3.9x

Fixed charge: 3.2x

Investment grade rating (BBB/Baa2) by all three

agencies

Total Equity Capitalization: $6.3 billion

Total Enterprise Value: $9.8 billion

Current Capital Structure Financial Metrics

Conservatism in capital management allows us access to attractive sources

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Shift from data centre value chain to ecosystem

Mature markets in the US and EU have seen a marked definition of business models

Colocation

Managed

Hosting

Simple

Hosting

Applications / Cloud

Networks

Neutral Data

Centre Facilities

& Services

The Data Centre Ecosystem

Incre

ase i

n c

om

ple

xit

y a

nd

reven

ue/r

isk

ENABLER

Major Growth Drivers

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DLR's Proprietary Market Research on APAC

In 2010, DLR commissioned an independent research to study the client opportunity in the

Pacific Rim

Information was gathered from a web-based survey using a panel of IT decision-makers

151 survey participants from Australia, Hong Kong and Singapore (approximately 1/3 from

each geography)

The results of this survey inform DLR's preference for target markets

Preferred City Location for New Data Center (Multiple responses were allowed)

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Different capital considerations in the ecosystem

Ecosystem players have identified and addressed their limitations, risks and opportunities

Predominantly Managed

Services Models

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Predominantly

Colocation Models

Capex Cost of Revenue ($/sqm)

Revenue per sqm per annum

$18,000

$ 3,500

$ 3,000

$ 12,000

$ / sqm of DC

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Asia Pacific drivers for data centres The Asia Pacific region is demonstrating a shortage of quality data center capacity to

address the rapid growth in technology needs

The rapid growth in dependence on Information and Communications Technology (“ICT”) has

led to dramatic increases in the need for data processing, networking and storage technologies

across organizations

Business imperatives including agility and speed to market, security, general compliance and

regulatory requirements are forcing organizations to redesign their Information Technology

framework

Existing data centers in major metros of Singapore, Sydney, Melbourne, Hong Kong, Shanghai

and Tokyo are at capacity in terms of space and/or power and are unable to address the

growing market demand

The advent and increasing adoption of Cloud Computing combined with exponential growth in

content distribution is continuing to drive demand for new data center development

Most Enterprise customers are adopting two streams of technology solutions

Private/Hybrid Cloud based services for non-critical applications

Outsourcing of infrastructure (space, power, cooling and some services) to leverage opex

solutions and segregate risk management

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Singapore – Case study Occupancy

Customer take-up is progressing 18+ months ahead of timeline due to strong demand.

Construction Status

Levels 2 thru 7 designed for five data halls each

customer move-ins in progress

Customer profile

Large global customers of DLR

Mature organisations that prefer an outsourced opex solution

Capital to be spent more wisely on core business

The shift has begun in APAC

De-coupling of data centre facilities and services, from network and compute

Understanding of different risk profiles and their management

Selective sourcing Vs Outsourcing

Understanding of capital investment horizons

Technology obsolescence (4 – 5 years) Vs Data Centre obsolescence (20 -25 years)

Government

Provides guidance on Singapore as a destination for data centres to customers (EDB &

IDA initiatives)

Active involvement of financial regulator (MAS) in financial sector outsourcing, setting

standards and addressing risk for financial customers

Neutral to DC business models when allocating land, incentives, licensing, ground

leases

Property Type 7 story, multi-tenant data center

currently capable of delivering

30 MW of gross power capacity

Location 29A Jurong International Business

Park

NRA ~370,500 square feet

Date Acquired December 2010

Acquisition

Strategy Acquire high quality wholesale

data center development project

(base building only) in a high

demand, supply constrained

market and design and construct

DLR POD’s for lease

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Summary Takeaways for Hong Kong Government Hong Kong is well-positioned to attract significant data centre investment but needs to

address its current limitations as a destination for data centre industry players

Government release of land to build sites should be on an accelerated timeline (less than 12

months)

Government should be agnostic to DC business models….this would allow significant industry

investment into the country and attract global customers to select HK to meet their data centre

requirements

Define incentives and “open window” demonstrating clear guidelines for customers

Simplify ground leases and remove investment uncertainty on land releases

Recognise the implicit role of data centre facilities organisations in being able to invest in HK

and provide the “catalyst” for Enterprise end-users, IT services, Cloud providers etc to use HK

as their data centre destination

DLR has a strong demand pipeline for Hong Kong from its global customer base and is looking

to make a significant investment in Hong Kong to satisfy its global customer demand

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