Data Centers' Q2 Renaissance

There's one thing data center owners are computing so far in 2014—better financial performance. (Assuming they did all their financial calculations on the cloud, they're contributing to their own wealth.)

We got a roundup of some of the big data center operators in the US—all of which are reporting increasing revenues and business to the SEC. First up on our radar is CoreSite Realty Corp, which saw revenues jump nearly 14% in Q2 over the previous year to $65.7M, which included nearly $10M in 121 new and expanded data center leases, including 26,500 SF lease at its Silicone Valley data center (here).

CoreSite's CEO Tom Ray told investors that much of the jump in revenue is credited to its turn-key data center capacity and strong leasing in LA, Boston, and Northern Virginia. And of course that means CoreSite is building out more data center space: 198k SF in VA2, a $74M project. And the company reports it may develop up to 382k SF at its Silicone Valley data center campus and another 300k SF at its New York data center (where it had 202k SF of shell space at NY2). 

Dupont Fabros's CEO Hossein Fateh told investors recently that “increasing levels of customer demand drove strong leasing results” during Q2. And the outlook for the rest of 2014 is equally as rosy as CoreSite plans to jump per share earning expectations by 5-cents. During Q2, the company earned $64.6M on $102M in revenue. It's an $11M jump in revenue from the previous year due to new leases, the company states.

While 96% of Dupont Fabros' portfolio is leased, the company warns one of its four largest customers is seeking to sublease space at one of its Northern Virginia facilities. Due to this, the company expects a 20% drop in rents upon releasing the facility, it reports to the SEC.