Digital Realty Plans $150 Million Expansion in Loudoun

Digital Realty Trust Inc. plans to expand its Ashburn campus with a $150 million investment between now and 2015, according to an announcement Wednesday from Gov. Bob McDonnell.

The expansion of the Loudoun County data center complex is expected to produce at least 50 new jobs, according to a press release from the Loudoun County Department of Economic Development.

The commitment comes with the incentive of a sales-tax exemption on certain data center computer equipment, made possible by legislation passed in 2009 by the General Assembly. The Virginia Economic Development Partnership worked with Loudoun County on the exemption to Digital Realty.

“This sales tax exemption is really a boon for our customers with data centers located in Loudoun County – already one of the most attractive data center markets in the country,” said Michael F. Foust, chief executive officer of Digital Realty, in a press release. “The significant relief we and our customers expect to receive effectively lowers the total cost of ownership of our data centers in the area. We are very excited about this development and believe it further establishes Virginia as a key hub for companies seeking to locate or strengthen their east coast data center footprint.”

The move further solidified Loudoun, and Ashburn in particular, as a primary hub of the Internet.

“Digital Realty’s continued commitment to Loudoun speaks volumes about the state of the digital economy in Northern Virginia,” said Loudoun Board of Supervisors Chairman Scott K. York (R-At Large) in a press release. “This major investment in ‘data center alley’ and the high quality jobs that come with it is a big win for Loudoun.”

Loudoun already has one of the strongest data center markets in the U.S., with five million square feet of existing data centers and another three million square feet in development.

“The Board of Supervisors has been focused since day one on expanding Loudoun’s commercial tax base, bringing jobs and revenue to our county,” said Matt Letourneau, chair of the board’s Economic Development Committee. “This incentive, as well as our abundant fiber, low electricity rates, and proximity to key markets, reinforces Loudoun’s status as a premier data center location.”

 DED assistant director Buddy Rizer said the expansion would result in more than one million square feet for Digital Realty, including the expansion, including the new 400,000 square feet of space that will house 22 data centers.