DIGITAL REALTY TRUST, INC. DLR

The data center industry is experiencing unprecedented^🌐 demand fueled by AI, cloud expansion, and enterprise digitization. Digital Realty notes that while many gigawatt campus announcements are in remote areas due to power availability, their established presence in major metros with deep utility relationships provides a distinct advantage. The company anticipates connectivity will become increasingly important for latency-sensitive AI inference deployments, with AI averaging over 50% of quarterly bookings since mid-2023.

Digital Realty's global reach, full spectrum product offering, and 5 gigawatts of IT load capacity across 40 strategic metros are key differentiators. This capacity is highly sought after due to the difficulty of building in these connected locations, and AI workloads are expected to significantly utilize this power bank over the next several years. The company maintains a robust pipeline of demand from AI-oriented use cases, with 50% of Q3 bookings related to AI even without a record hyperscale lease.

Enterprise demand continues to grow as organizations transition from on-prem IT to more flexible, cloud-connected architectures. Digital Realty supports this shift by providing infrastructure and connectivity for hybrid environments, enabling proximity to cloud platforms and partners, and facilitating AI implementation. Examples include Oxford Quantum Circuits deploying a Quantum-AI computer in JFK10 and a global technology company using liquid cooling for HPC/AI environments.

Digital Realty received the EcoVadis Gold rating, placing it in the 97th percentile of all assessed companies for sustainability. The company expanded renewable energy commitments in Illinois by signing additional contracts for local community solar projects. Additionally, long-term renewable energy agreements were announced with Current Hydro to procure 500 gigawatt hours of clean baseload hydropower from three projects along the Ohio River.

The company has evolved its funding model, leveraging joint ventures, an oversubscribed $3+ billion hyperscale fund in the U.S., and balance sheet liquidity. This strategic private capital initiative allows Digital Realty to fuel growth for its customers and balance returns, generating accelerating bottom-line per share growth for shareholders. This approach enables the deployment of different leverage quantities at various project levels to achieve suitable returns.

Digital Realty is prepared for advanced AI technical requirements, including 800-volt architectures and liquid cooling. They are a long-standing partner of NVIDIA, working on future chipsets. Their modular designs and HD colo capability, available across 30 metros and 170 facilities, allow for densification up to 150 kilowatts, supporting new requirements like Rubin and Grace Blackwell within approximately 14 weeks. The Digital Realty Innovation Lab facilitates pre-engineering and standardization for repeatable global outcomes.