Digital Realty opens new Docklands facility to support the growth of London's technology ecosystem
Artificial Intelligence, Internet of Things, 5G and Blockchain currently on track to contribute £6.25 billion to London economy in 2019 – expected to increase to £24.29 billion by 2029
LONDON, Sept. 12, 2019 /PRNewswire/ -- Digital Realty (NYSE: DLR), a leading global provider of data centre, colocation and interconnection solutions, announced today the official opening of Cloud House, the latest facility in its Digital Docklands campus of highly-connected data centres in London's Docklands area. The investment will support the growth of London's technology ecosystem, with the city set to experience a multibillion-pound technology boom, according to a new study conducted by Development Economics.
The Digital Realty-commissioned study, "Digital Capitals Index: London," examines the value that innovative technologies will deliver to the city's economy over the next decade through new jobs, businesses, industries and efficiencies in public services. The report focuses on four of the most widely discussed technology innovations: Artificial Intelligence (AI), the Internet of Things (IoT), 5G and Blockchain.
Aggregate Annual Value to London's Economy, 2019
Table 1: London – contribution of four digital technologies: 2019 (£GBP, 2019 prices), "Digital Capitals Index: London"
These four innovative technologies combined will add £6.25 billion to London's economy in 2019, with IoT contributing the most at £3.09 billion (49 percent of the total) primarily through improvements in operational efficiencies.
AI is the second most impactful with an expected contribution in 2019 of £1.99 billion (32 percent of the total) through applications such as combating money laundering. Blockchain will generate £1.04 billion of value (17 percent), and 5G, still in its early stages, will add £130 million (2 percent).
By 2029, however, these new technologies are tipped to contribute an estimated £24.29 billion to London's economy, £18.04 billion more than 2019.
Aggregate Annual Value to London's Economy, 2029
Table 2: London – contribution of four digital technologies: 2029 (£GBP, 2019 prices), "Digital Capitals Index: London"
The most spectacular growth is expected to come from 5G, with its economic contribution to London's economy set to increase 3,000 percent over the next decade, from £130 million to £4.29 billion, as 5G becomes the foundation for the deployment of many other innovative, data-led technologies.
Digital Realty's investment in the Digital Docklands is designed to underpin the growing importance of data-led technologies to London's economy by ensuring the city's businesses have the right digital infrastructure to adopt and deliver on complex technology, wherever and whenever they need. The Digital Docklands campus is highly connected, offering the high-speed global connectivity required to deliver on the promise of AI, IoT, 5G and Blockchain.
"Cities around the world are on the cusp of a technology revolution that could drive substantial economic growth," says Jeff Tapley, EMEA Managing Director, Digital Realty. "The opening of our new facility in the Digital Docklands underscores Digital Realty's commitment to supporting the technology revolution in London. Businesses can rely on our secure platform to connect to and deliver the critical technology they need to succeed, from AI to IoT, from one city and country to anywhere in the world in order to efficiently grow and scale."
About Digital Realty
Digital Realty supports the data centre, colocation and interconnection strategies of more than 2,000 firms across its secure, network-rich portfolio of data centres located throughout North America, Europe, Latin America, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare and consumer products. www.digitalrealty.com. Follow Digital Realty on social media: LinkedIn, Twitter, Facebook, Instagram and YouTube.
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This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to Digital Docklands, the digital economy as a whole, the Digital Capital: London" report and our expectations for London technology. These risks and uncertainties include, among others, the following: reduced demand for data centres or decreases in information technology spending; decreased rental rates, increased operating costs or increased vacancy rates; increased competition or available supply of data centre space; the suitability of our data centres and data centre infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services; our dependence upon significant customers; bankruptcy or insolvency of a major customer or a significant number of smaller customers; our inability to successfully develop and lease new properties and development space; the impact of current global and local economic, credit and market conditions; changes in foreign exchange rates; our inability to retain data centre space that we lease or sublease from third parties; difficulties managing an international business; our failure to successfully integrate and operate acquired or developed properties or businesses; risks related to joint venture investments; risks associated with using debt to fund our business activities; our failure to complete any financing arrangements contemplated from time to time; and, risks related to our taxation as a REIT. For a further list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2018 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019 and June 30, 2019. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.