DuPont Fabros Technology, Inc. Q2 2008 Earnings Call Transcript

Just highlighting one section of the Q&A, about demand in different locations and the customer mix. Transcripts from Seeking Alpha.

>>Operator

Sri Anantha with Oppenheimer has our next question.

Sri Anantha - Oppenheimer

Good morning. Hey Hossein, I just had a quick question, as you look at the demand outlook for there for data center space. Could you just give us like some sense today, if you look at your sales pipeline what percentage of that pipeline comprises about and comprises as suppose to internet-centric businesses? And also if you could just give us a little bit of color on how your customer mix has evolved over the years, I know the initial demand for data center space was driven by the internet-centric businesses, but I would imagine that your customer mix is lot more diversified today then it what it was like three or four years ago?

Hossein Fateh

I think you are absolutely right on that, but however, it is more market centric and each market is different. Virginia is a round number its perhaps 60% to 80% internet based. Santa Clara, I would put at the same percentages perhaps even higher. Chicago is lower because Chicago being in the middle of country that’s tenants required data centric space and they want one data center. Chicago is the perfect location for that, and they want it in the middle of the country due to license fee issues. And it's a perfect market for that. Chicago will be non-internet based.

New York will be mostly around the banking sector and we actually feel very good about the banking outsource data center business and that perhaps a year ago or 18 months ago significant bank may not outsource data centers due to perhaps one thing to build their own data centers now many of the banks they are under stress and we feel outsourcing will be a fabulous option for them. So, we feel very good about our demand in New Jersey. I think to answer your question it depends on each market -- each market will be different.

Sri Anantha - Oppenheimer

Okay, but just if you look at your sales pipeline today where do you think the incremental demand is coming from, do you think it's still skewed towards internet businesses or it's now more a logic portion is coming from big traditional enterprise companies?

Hossein Fateh

Well I think Virginia and Santa Clara will be more skewed towards internet businesses in fact the large portion which we feel that Chicago when you look at our sales pipeline is probably 60%, 65% non-internet and 30%, 35% internet business. New Jersey will probably we guess is going to be probably in the same as Chicago 60%, 65% non-internet but we feel good about New Jersey in that many of the banks -- we want to expand there and have data center presence that’s outsourced and also the size of the tenants in New Jersey will be significantly larger than in Chicago.

Sri Anantha - Oppenheimer

Well the last question I have is, could you talk about demand from your existing customers they have existing customer base, do you think that the demand from them is still increasing at a pace --?

Hossein Fateh

In a [hysteretic] way, in a very good way we trench power loads of our tenants and we would not want to disclose them publicly but we see the loads increasing and that’s the very big way and we are tracking many of our existing customers and we believe not only they will expand in Virginia but they will expand with us in other markets.