QTS Renews Leases at One of the World’s Largest Data Centers

The new deals bring the weighted average remaining lease term to four years at QTS Metro Atlanta. QTS owns an adjacent, 17-acre plot of land which could be developed as needed into another facility.

QTS Atlanta Metro Data Center
QTS Atlanta Metro Data Center

QTS has signed new contracts with longstanding clients at its Atlanta metro hyperscale data center. Two lease extensions were inked, totaling 19 megawatts in aggregate capacity. The anchor tenants paid above pre-renewal rates.

The two clients signify a sizable portion of the company’s annualized rent, and the new deals bring the weighted average remaining lease term to four years. The hyperscale facility currently serves approximately 235 tenants from various industries. According to JLL’s latest Data Center Outlook, demand in the Atlanta market remained high throughout last year, with many large users seeking IT solutions at lower cost. The metro saw 12.5 megawatts in net absorption by the end of 2017, a value forecasted to be exceeded in 2018.

The Atlanta market remains a key destination for hyperscale customers. We expect the combination of our significant power cost advantage in Atlanta and future growth capacity enabled by our mega scale data centers will continue to provide strategic growth opportunities within the hyperscale vertical,” said Tag Greason, executive vice president at QTS, in a prepared statement.

Atlanta behemoth

QTS’ Atlanta Metro data center is one of the 10 largest in the world. Measuring approximately 970,000 gross square feet, it grants tenants access to more than 150 carriers, networks and cloud service providers. It has a total of 543,000 square feet of data center space, of which 453,000 square feet is 48-inch raised floor space. One of its selling points is the availability of a 120-megawatt substation built directly into the Georgia Power infrastructure. QTS is thus able to deliver some of the lowest energy costs in the Atlanta metro data center market.

According to QTS’ 10-K, the facility is adjacent to 17 acres of undeveloped land owned by the company. This plot, although currently not included in any development plans, could potentially provide space for a minimum of 584,000 net rentable square feet of raised floor.

Recently, QTS signed another hyperscale client in Virginia, at its Manassas data center. The cloud provider will initially use five megawatts of the total 24 which were leased.

Image courtesy of QTS