Digital Realty (DLR) Q2 FY25 earnings call

Earnings call· Jun 2025 (Q2 FY25)· Real Estate· Jul 24, 2025

Source: earnings call transcript

Digital Realty delivered a strong Q2 FY25, marked by record 0-1 megawatt plus interconnection bookings and robust core FFO per share growth, driven by its global platform and strategic focus on connectivity. The successful U.S. Hyperscale Data Center Fund and substantial development pipeline provide a long runway for future growth, while the company maintains a strong balance sheet and increased its full-year guidance. Management highlighted broad-based demand and the potential for enterprise AI adoption to further compound workloads in core markets.

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DLR operating KPIs by quarter

DLR operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	This call Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Bookings 0-1 megawatt plus interconnection	$76M Highlights for the fourth quarter include $100 million of new leases signed at Digital Realty share, driven by a 16% sequential uplift in the 0-1 megawatt plus interconnection bookings for a new record of $76 million. Source: earnings call transcript	$69M Leasing in our 0 to 1 megawatt plus interconnection segment was $69 million, our second highest ever behind only last quarter's record. Source: earnings call transcript	$90M Record performance in the 0-1 megawatt plus interconnection product set stole the show in the quarter with $90 million of bookings. Source: earnings call transcript	$85M Like last quarter, our 0-1 megawatt plus interconnection category was a strong contributor to our leasing strength with $85 million in new leases, along with a healthy $76 million of greater than a megawatt leasing. Source: earnings call transcript	$96M Our 0 to 1 megawatt plus interconnection product set continued its strong momentum, posting a new leasing record of $96 million, 7% higher than the previous record set in 2Q of '25. Source: earnings call transcript	$98M Strength was broad-based in the quarter with another record of $98 million of leasing within our 0-1 megawatt plus interconnection product where proximity, connectivity and access to relevant enterprises and service providers matter most. Source: earnings call transcript	$108M During the second quarter, we achieved that objective for the first time, delivering $108 million of bookings in our 0-1 megawatt plus interconnection business and marking a third consecutive quarterly record. Source: earnings call transcript	+10.2%
Interconnection bookings	$15M Interconnection bookings were also strong at $15 million, nearly matching last quarter's record. Source: earnings call transcript	$15M This quarter's total included $15 million of interconnection bookings. Source: earnings call transcript	—	$20M Interconnection leasing of $20 million marked a second consecutive record quarter which was 13% higher than the last quarter's record, underscoring the growing recognition of our connectivity-driven value proposition. Source: earnings call transcript	$18.9M Interconnection bookings approached last quarter's record at $18.9 million. Source: earnings call transcript	$18.6M Interconnection bookings remained strong at $18.6 million, 24% higher than a year ago. Source: earnings call transcript	$20.5M Interconnection bookings of 20.5 million in the quarter also marked a new record, up 18% from the prior year as these bookings benefit from the overall growth in our 0-1 megawatt category. Source: earnings call transcript	+10.2%
New logos added	166 Finally, the strength and breadth of data center demand and the progress of our go-to-market initiatives are also reflected in our addition of a record 166 new logos. Source: earnings call transcript	119 During the first quarter, we added another 119 new logos, including a leading global semiconductor equipment manufacturer deploying high-performance computing in Paris to take advantage of the well-developed cloud and network communities, along with an emerging AI community on PlatformDIGITAL. Source: earnings call transcript	139 This strategic advantage continues to set Digital Realty apart, driving the addition of 139 new logos in the second quarter. Source: earnings call transcript	156 We also added a near-record 156 new logos. Source: earnings call transcript	—	116 We continue to increase our market share in this category, while growing our customer base with 116 new logos added in the quarter. Source: earnings call transcript	142 As we add new customers, 142 new logos this quarter, expand new -- to new markets and new services with existing customers. Source: earnings call transcript	+22.4%
Bookings Greater than-megawatt	$23M We also signed $23 million within the greater than-megawatt category which was mostly weighted toward EMEA and APAC following last quarter's outsized strength in the Americas. Source: earnings call transcript	$172M At our share, greater than a megawatt leasing was $172 million. Source: earnings call transcript	$45M We signed $45 million within the greater than a megawatt category at our share with leasing spread across our regions. Source: earnings call transcript	$76M Like last quarter, our 0-1 megawatt plus interconnection category was a strong contributor to our leasing strength with $85 million in new leases, along with a healthy $76 million of greater than a megawatt leasing. Source: earnings call transcript	$78M We signed $78 million within the greater than 1 megawatt category at our share with continued strength in the Americas. Source: earnings call transcript	—	—	+2.6%
Churn rate	2% For the quarter, churn remained well controlled at 2%. Source: earnings call transcript	—	—	1.6% For the quarter, total churn remained low at 1.6%. Source: earnings call transcript	—	—	—	—
Capacity delivered	—	<50 In the first quarter, we grew core FFO by 6.1%, posted strong leasing results and increased the capacity under development by another 26% despite delivering nearly 50 megawatts of new capacity during the quarter, a great start to the year. Source: earnings call transcript	96 During the quarter, we delivered a record 96 megawatts of new capacity, 98% of which was pre-leased while 16 megawatts of new data center projects started construction, leaving 734 megawatts under construction. Source: earnings call transcript	—	~90 During the quarter, we delivered about 90 megawatts of new capacity, 75% of which was pre-leased, while we started about 135 megawatts of new data center projects, increasing our total development to 769 megawatts under construction. Source: earnings call transcript	63 During the quarter, we delivered 63 megawatts of new capacity, 84% of which was pre-leased, while we started about 464 megawatts of new data center capacity that was nearly 50% pre-leased, increasing our total development to 1.2 gigawatts under construction. Source: earnings call transcript	76 During the quarter, we delivered 76 megawatts of new IT capacity, approximately 60% of which was pre-leased. Source: earnings call transcript	+20.6%
Capacity starts	—	219 We delivered nearly 50 megawatts of new capacity, 83% of which was pre-leased, while we started another 219 megawatts of new projects, highlighted by 200 megawatts in Northern Virginia that is 50% pre-leased. Source: earnings call transcript	16 During the quarter, we delivered a record 96 megawatts of new capacity, 98% of which was pre-leased while 16 megawatts of new data center projects started construction, leaving 734 megawatts under construction. Source: earnings call transcript	—	~135 During the quarter, we delivered about 90 megawatts of new capacity, 75% of which was pre-leased, while we started about 135 megawatts of new data center projects, increasing our total development to 769 megawatts under construction. Source: earnings call transcript	~464 During the quarter, we delivered 63 megawatts of new capacity, 84% of which was pre-leased, while we started about 464 megawatts of new data center capacity that was nearly 50% pre-leased, increasing our total development to 1.2 gigawatts under construction. Source: earnings call transcript	312 At the same time, we commenced development of 312 megawatts of capacity including significant available inventory in Northern Virginia and Marseille to support future customer deployments. Source: earnings call transcript	—
Capital expenditures Development	—	~$700M During the quarter, we spent approximately $1 billion on development CapEx on a gross basis, including our partner share and roughly $700 million on a net basis to Digital Realty. Source: earnings call transcript	~$700M During the second quarter, we spent over $900 million on development CapEx on a gross basis, which includes our partner share and approximately $700 million on a net basis to Digital Realty. Source: earnings call transcript	$900M+ During the third quarter, we spent over $900 million on development CapEx when including our partner share and approximately $700 million on a net basis to Digital Realty. Source: earnings call transcript	—	—	—	—
Capital expenditures Development, net to Digital Realty	—	—	—	~$700M During the third quarter, we spent over $900 million on development CapEx when including our partner share and approximately $700 million on a net basis to Digital Realty. Source: earnings call transcript	$930M We spent $930 million on development CapEx in the quarter, net of our partner share, bringing full year spend to $3 billion. Source: earnings call transcript	$910M We spent $910 million on development CapEx in the quarter, net of our partner share. Source: earnings call transcript	$1.1B We invested $1.1 billion in development CapEx during the quarter, net of our partner share, bringing year-to-date capital spending to $2 billion. Source: earnings call transcript	+20.9%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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