Digital Realty (DLR)
300+ data centers in 27 countries. Major hyperscale leasing.
- Ticker: DLR
- Sector: dc operator (colocation)
- DC exposure tier: high
Digital Realty (DLR) is a high-exposure name in the data-center supply chain in the dc operator sector. Data Center Index tracks Digital Realty's capex history, project wins, and supplier exposure across the AI infrastructure buildout, refreshed daily from SEC filings and project announcements.
Digital Realty data center thesis
300+ data centers in 27 countries with $6.11B in 2025 revenue, leaning hard into hyperscale leasing for the AI cycle. Pipeline includes the 1,830 MW Project Bunkhouse mega-campus in Stilesboro, GA plus 500 MW in Indonesia and 300 MW in the UK, roughly 2.78 GW of announced capacity. Up 21% YoY as the market rewards the AI-ready footprint.
Bull case
- Project Bunkhouse alone is 1.83 GW of announced AI capacity in Georgia, a single asset that, when leased, materially shifts DLR's hyperscale revenue mix and demonstrates that mega-campus economics are now the standard release cycle.
- Long-tail PowerHouse joint venture with Blackstone provides $5B+ of pre-funded development capital; DLR can build hyperscale capacity without diluting equity, a structural advantage over peers leveraged on cap-rate compression.
- Mark-to-market releasing spreads on AI workloads are running double-digit positive; every renewal in a power-constrained metro (Ashburn, Hillsboro, Dallas) is a free option on the next leg of demand pricing.
Bear case
- Trades at $195 near 52-week highs with an FFO multiple in the high-20s, premium pricing that bakes in the Bunkhouse and UK mega-campus deliveries before either is fully leased.
- REIT rate sensitivity remains the biggest tail risk: DLR carries $19B+ in debt, and any back-up in 10Y yields rerates the entire multiple regardless of operating execution.
- Supply additions in core metros (Ashburn 300 MW, Garland 200 MW, Hillsboro 150 MW) come online into a market also being flooded by CoreWeave, Crusoe, and AirTrunk competition; release pricing could decelerate if the 2H 2026 absorption rate slips.
Data center exposure rationale
Pure-play colocation and hyperscale DC operator: 100% of revenue is DC by definition.
Digital Realty revenue and capex
In fiscal 2025, Digital Realty reported revenue of $6.1B, capital spending of $3.2B and operating income of $658.5M.
| Fiscal year | Revenue | Capex | Operating income |
|---|---|---|---|
| 2025 | $6.1B | $3.2B | $658.5M |
| 2024 | $5.6B | $2.8B | $471.9M |
| 2023 | $5.5B | $3.5B | $524.5M |
Tracked Digital Realty data center projects
- Project Bunkhouse (Taurus, Stilesboro), 1.3 GW, Stilesboro, GA · permitted
- Ashburn Campus, 500 MW, Ashburn, VA · operational
- Garland Campus, 160 MW est., Dallas, TX · under construction
- Hillsboro Campus, 150 MW est., Hillsboro, OR · operational
- Digital Realty Cyberjaya (Malaysia), 32 MW, Cyberjaya, Malaysia · operational
- Digital Realty Slough Trading Estate Campus, 15 MW, Slough, United Kingdom · operational
Recent Digital Realty news
- Digital Realty eyes gigawatt-scale data center site outside Indianapolis, Indiana, DCD, 2026-10-16
- Photonics quantum firm Orca Computing deploys PT-3 system at Digital Realty’s LHR19 data center, DCD, 2026-10-15
- Digital Realty tops out second data center in Seoul, South Korea, DCD, 2026-10-15
- Digital Realty begins work on KIX15 data center in Japan, DCD, 2026-10-09
- AI cloud provider Blackfuel emerges from stealth, plans first deployment in Spain, DCD, 2026-10-01