DuPont Fabros Technology
{{Short description|American data center provider}}
{{Infobox company
| name = DuPont Fabros Technology, Inc.
| fate = Acquired by Digital Realty
| foundation = {{start date and age|2007|03|2}}
| defunct = {{end date and age|2017|09|14}}
| location_city = Washington, D.C.
| industry = Real estate investment trust
| products = Data centers
| key_people = {{nowrap | Christopher P. Eldredge, CEO
Lammot J. du Pont, Chairman
Jeffrey H. Foster, CFO[https://www.sec.gov/Archives/edgar/data/910322/000091032217000003/af2016123110k.htm Astoria Financial Corporation 2016 Form 10-K Annual Report]}}
| revenue = {{increase}} $0.528 billion (2016)
| net_income = {{increase}} $0.181 billion (2016)
| assets = {{increase}} $3.034 billion (2016)
| equity = {{increase}} $0.962 billion (2016)
}}
DuPont Fabros Technology, Inc. (DFT) was a real estate investment trust that invested in carrier-neutral data centers and provided colocation and peering services. In 2017, the company was acquired by Digital Realty.
Operations
As of December 31, 2016, the company owned 11 operating data center facilities comprising over 3.3 million net rentable square feet. Eight of the properties were in Northern Virginia, two were in Elk Grove Village, Illinois, and one was in Santa Clara, California.
The company leased space to companies, on a wholesale level, in which such companies rented space to build their own data centers.{{cite news | url=http://www.barrons.com/articles/the-growing-allure-of-data-center-reits-1497676056 | title=The Growing Allure of Data-Center REITs | first=Tiernan | last=Ray | work=Barron's | date=June 17, 2017}}
The company had 32 customers and derived 92% of its revenue from its 15 largest customers. The company's largest customers included Microsoft (25.4% of revenue), Facebook (20.2% of revenue), Rackspace (9.0% of revenue), and Yahoo! (6.0% of revenue).
History
The company was co-founded by Lammot J. du Pont, an analyst for JPMorgan Chase and Hossein Fateh, a real estate developer in the Washington metropolitan area.{{cite news | url=https://www.bizjournals.com/washington/stories/2010/02/22/tidbits7.html | title=The founders of DuPont Fabros double down | first=Nick | last=Adde | work=American City Business Journals | date=February 22, 2010}} The company sought to acquire data centers that belonged to defunct internet service providers.
In 2004, the company's predecessor acquired 5 data centers from Savvis for $52 million in a leaseback transaction.{{cite press release | url=http://www.businesswire.com/news/home/20040308005512/en/SAVVIS-Closes-Purchase-Cable-Wireless-America-Assets | title=Savvis Closes Purchase of Cable & Wireless America Assets | publisher=Business Wire | date=March 8, 2004}}
In 2005, the company's predecessor acquired a 230,000 square foot data center from AOL for $58.5 million.{{cite news | url=https://www.washingtonpost.com/wp-dyn/content/article/2005/07/27/AR2005072702539.html | title=Tenants to Revive Vacant Data Centers | first=Jenalia | last=Moreno | newspaper=The Washington Post | date=July 28, 2005}}
On March 2, 2007, the company was incorporated as a real estate investment trust.
In October 2007, the company became a public company via an initial public offering that raised $640 million, the 7th largest initial public offering of a real estate investment trust at that time.{{cite news | url=https://www.reuters.com/article/dupontfabros/update-1-reit-dupont-fabros-technology-ipo-raises-640-5-mln-idUSN1837411420071018 | title=REIT DuPont Fabros Technology IPO raises $640.5 mln | first=Lilla | last=Zuill | work=Reuters | date=October 18, 2007}}
In early 2008, the company halted construction projects due to a lack of financing.{{cite news | url=https://www.nytimes.com/2010/02/10/realestate/commercial/10data.html | title=North Jersey Finds Popularity as Home for Data Centers | first=Jotham | last=Sederstrom | work=The New York Times | date=February 9, 2010 |url-access=subscription}}
In 2009, the company was named as the fastest growing company in the Washington metro area by American City Business Journals.{{cite web | url=https://www.bizjournals.com/washington/print-edition/2014/10/31/50-fastest-growing-companiesa-win-for-the-books.html | title=50 Fastest Growing Companies: A win for the books | first=Joanne S. | last=Lawton | work=American City Business Journals}}
In February 2011, Mohammed Mark Amin resigned from the board of directors and was replaced by John T. Roberts Jr.{{cite press release | url=https://www.prnewswire.com/news-releases/john-t-roberts-jr-joins-dupont-fabros-technology-incs-board-of-directors-mark-amin-resigns-as-director-116425799.html | title=John T. Roberts Jr. Joins DuPont Fabros Technology, Inc.'s Board of Directors; Mark Amin Resigns as Director | publisher=PR Newswire | date=February 17, 2011}}
In 2012, Hossein Fateh, the chief executive officer of the company, forgone his $450,000 salary in exchange for use of the company jet.{{cite news | url=https://www.bizjournals.com/washington/print-edition/2012/04/27/dupont-fabros-technologys-hossein.html | title=DuPont Fabros Technology's Hossein Fateh trades salary for a private jet | first=Bryant Ruiz | last=Switzky | work=American City Business Journals | date=February 6, 2013}}
In 2012, the company reported that the volume of leasing was the largest in company history.{{cite news | url=https://www.bizjournals.com/washington/breaking_ground/2013/02/volume-of-leasing-in-2012-largest-in.html | title=Volume of leasing in 2012 largest in Dupont Fabros' history | first=Kim | last=Steele | work=American City Business Journals | date=May 2, 2012}}
In May 2012, Mohammed Mark Amin, formerly a director of the company, was accused by the U.S. Securities and Exchange Commission of making a $618,000 profit as a result of insider trading in the company's securities.{{cite news | url=https://dealbook.nytimes.com/2012/05/08/insider-trading-crackdown-ensnares-hollywood-producer/ | title=Insider Trading Crackdown Ensnares Hollywood Producer | first=Azam | last=Ahmed | work=The New York Times | date=May 8, 2012 |url-access=subscription}}{{cite press release | url=https://www.sec.gov/news/press-release/2012-2012-86htm | title=SEC Charges Movie Producer and Ring of Relatives and Business Partners with Insider Trading | publisher=U.S. Securities and Exchange Commission | date=May 8, 2012}}{{cite news | url=https://www.law360.com/articles/338405/film-producer-pals-reach-2m-deal-in-insider-trading-case | title=Film Producer, Pals Reach $2M Deal In Insider Trading Case | first=Max | last=Stendahl | work=Law360 | date=May 8, 2012 |url-access=subscription}}
In September 2014, the company opened a new data center in Ashburn, Virginia.{{cite press release | url=https://www.prnewswire.com/news-releases/dupont-fabros-technology-inc-hosts-ribbon-cutting-ceremony-for-newest-data-center-located-on-ashburn-corporate-campus-277054181.html | title=DuPont Fabros Technology Inc. Hosts Ribbon-Cutting Ceremony For Newest Data Center Located On Ashburn Corporate Campus | publisher=PR Newswire | date=September 25, 2014}}
In February 2015, Christopher P. Eldredge was named chief executive officer of the company.{{cite press release | url=https://www.prnewswire.com/news-releases/dupont-fabros-technology-inc-names-christopher-p-eldredge-president-and-chief-executive-officer-300031075.html | title=DuPont Fabros Technology Inc. Names Christopher P. Eldredge President And Chief Executive Officer | publisher=PR Newswire | date=February 4, 2015}}
In March 2015, the company won the Brill Award For Data Center Design issued by Uptime Institute.{{cite press release | url=https://www.prnewswire.com/news-releases/dupont-fabros-technology-inc-wins-brill-award-for-data-center-design-300043299.html | title=DuPont Fabros Technology, Inc. Wins Brill Award For Data Center Design | publisher=PR Newswire | date=March 2, 2015}}
In March 2016, the company acquired a 46.7 acre parcel of land in Hillsboro, Oregon for $11.2 million.{{cite press release | url=https://globenewswire.com/news-release/2016/03/17/821029/0/en/DuPont-Fabros-Technology-Inc-Announces-New-Leases-Totaling-Over-27-Megawatts-of-Critical-Load-Commencement-of-Development-of-SC1-Phase-III-and-Acquisition-of-Land-for-Future-Develo.html | title=DuPont Fabros Technology, Inc. Announces New Leases Totaling Over 27 Megawatts of Critical Load, Commencement of Development of SC1 Phase III and Acquisition of Land for Future Development | publisher=Globe Newswire | date=March 17, 2016}}{{cite news | url=http://www.oregonlive.com/silicon-forest/index.ssf/2016/08/data_center_company_buys_hills.html | title=Data center company buys Hillsboro acreage for new server farm | first1=Luke | last1=Hammill | first2=Mike | last2=Rogoway | work=The Oregonian | date=August 9, 2016}}
In June 2016, the company sold a 38-acre data center in New Jersey to Quality Technology Services for $125 million.{{cite press release | url=https://www.prnewswire.com/news-releases/qts-acquires-dupont-fabros-38-acre-new-jersey-data-center-campus-300280302.html| title=QTS Acquires DuPont Fabros' 38-Acre New Jersey Data Center Campus | publisher=PR Newswire | date=June 6, 2016}}{{cite news | url=https://www.reuters.com/article/idUSASC08SUU | title=QTS says acquires Dupont Fabros' New Jersey data center campus | publisher=Reuters | date=June 6, 2016}}
In October 2016, the company acquired the former printing plant of the Toronto Star for C$54.25 million, with plans to convert it to a data center.{{cite press release | url=https://globenewswire.com/news-release/2016/10/27/883581/0/en/DuPont-Fabros-Technology-Inc-Announces-Purchase-of-Shell-Building-in-the-Greater-Toronto-Area.html | title=DuPont Fabros Technology, Inc. Announces Purchase of Shell Building in the Greater Toronto Area | publisher=Globe Newswire | date=October 27, 2016}}{{cite news | url=https://www.bisnow.com/toronto/news/data-center/data-center-to-replace-former-toronto-star-printing-facility-74996 | title=Data Centre To Replace Former Toronto Star Printing Facility | first=Ian | last=Johnston | work=Bisnow Media | date=May 31, 2017}}
In May 2017, the company acquired a 56.5-acre undeveloped site in Mesa, Arizona with plans to construct a data center campus.{{cite news | url=https://www.bizjournals.com/phoenix/news/2017/05/10/data-center-developer-buys-mesa-land-for-potential.html | title=Data center developer buys Mesa land for potential 1 million SF campus | first=Mike | last=Sunnucks | work=American City Business Journals | date=May 10, 2017}}
In September 2017, the company was acquired by Digital Realty.{{cite press release | url=https://www.prnewswire.com/news-releases/digital-realty-completes-merger-with-dupont-fabros-300520007.html | title=Digital Realty Completes Merger With DuPont Fabros | publisher=PR Newswire | date=September 14, 2017}}{{cite news | url=https://www.bizjournals.com/washington/news/2017/09/15/digital-realty-acquires-dupont-fabros-in-7-8b-deal.html | title=Digital Realty acquires DuPont Fabros in $7.8B deal | first=Michael | last=Neibauer | work=American City Business Journals | date=September 15, 2017}}