Digital Realty Trust, Inc. (NYSE: DLR): Corporate Profile & Financials
Source: Form 10-K Annual Report For the fiscal year ended December 31, 2025
Quick Facts / Company Snapshot
| Metric / Attribute | Disclosed Detail |
|---|---|
| Company Name | Digital Realty Trust, Inc. / Digital Realty Trust, L.P. |
| Ticker Symbol & Primary Exchange | (NYSE: DLR) |
| Corporate Headquarters | 2323 Bryan Street, Suite 1800, Dallas, Texas 75201 |
| State of Incorporation | Maryland (Parent incorporated March 9, 2004; Operating Partnership organized July 21, 2004) |
| Tax Status | Real Estate Investment Trust (REIT) |
| Chief Executive Officer | Andrew P. Power (President & Chief Executive Officer) |
| Chief Financial Officer | Matthew R. Mercier |
| Chief Accounting Officer | Christine B. Kornegay |
| Total Operating Revenues (FY 2025) | $6,112,692 thousand |
| GAAP Net Income (FY 2025) | $1,313,165 thousand |
| Net Income Available to Common Stockholders (FY 2025) | $1,267,865 thousand |
| Total Consolidated Assets | $49,410,468 thousand |
| Total Consolidated Indebtedness (Face Value) | $18,556,770 thousand |
| Total Portfolio Data Centers | 310 facilities (including 89 held in unconsolidated entities) |
| Total Rentable Square Feet | 43,208 thousand sq ft (plus 9,679 thousand under active development and 4,696 thousand held for development) |
| Global Full-Time Employees | 4,282 employees (as of December 31, 2025) |
Company Overview
Digital Realty Trust, Inc. is a leading global provider of data center, colocation, and interconnection solutions. Operating as a self-administered and self-managed real estate investment trust (REIT) under the Internal Revenue Code, the Parent conducts substantially all of its operations through its operating partnership subsidiary, Digital Realty Trust, L.P., in which it held an approximate 98.2% common general partnership interest as of December 31, 2025. The Parent was incorporated in Maryland on March 9, 2004, while the Operating Partnership was organized as a Maryland limited partnership on July 21, 2004. As the sole general partner of the Operating Partnership, the Parent exercises exclusive and complete responsibility over the day-to-day administration, operational management, and strategic development of the enterprise.
The enterprise provides critical infrastructure that serves as the foundation for the digital economy. Its comprehensive portfolio provides secure, highly connected, and continuously available environments that house mission-critical computer systems, networking equipment, storage units, and corporate information technology applications. Customers depend on this infrastructure for digital communications, transaction processing, disaster recovery, cloud computing workflows, and artificial intelligence model development. A key differentiator of the company’s operating footprint is its collection of internet gateway facilities: highly connected, network-dense hubs that enable data exchange within and between major international metropolitan regions. These carrier-neutral gateway facilities facilitate low-latency peering and transit connections that are capital-intensive and historically difficult for competitors to replicate on a cost-competitive basis.
As of December 31, 2025, the company’s comprehensive portfolio encompassed 310 data centers, containing approximately 57.6 million rentable square feet, including 89 data centers held through unconsolidated joint venture entities. Geographically, this footprint spans 118 data centers located across the United States, 113 facilities situated throughout Europe, 36 facilities in Latin America, 18 in Asia, 16 across Africa, six in Australia, and three in Canada. Across the operational data center space, the portfolio maintained an aggregate occupancy rate of 84.7%. The platform’s global customer base comprises more than 5,000 customers from diverse commercial industry verticals, such as cloud and information technology services, communications and mobile networks, digital social media, financial services, life sciences, healthcare, automotive, energy, and global retail platforms.
Business Segments
Digital Realty Trust, Inc. operates and manages its business as a single global operating and reportable segment. The company’s chief operating decision maker (CODM), identified as President and Chief Executive Officer Andrew P. Power, utilizes consolidated net income computed in accordance with U.S. GAAP as the primary metric for evaluating operating results, setting investment parameters, and allocating corporate capital resources. The company’s customer base is increasingly multinational, frequently executing multi-regional deployment agreements across North America, EMEA, and Asia Pacific under unified master service frameworks. Consequently, management oversees data center operations, capacity engineering, power procurement, and customer sales on a global, integrated basis rather than through autonomous geographic or product-type divisions.
The primary revenue streams feeding into this single operating segment are disclosed as follows:
- Rental and Other Services: Represents the core revenue stream generated by leasing data center space, electrical power, cooling capacity, and interconnection services to enterprise customers under operating lease structures. For the fiscal year ended December 31, 2025, rental and other services generated $5,968,918 thousand, compared to $5,482,472 thousand in 2024 and $5,430,173 thousand in 2023.
- Fee Income and Other: Encompasses fees earned from contractual property management, asset management, development oversight, and construction fit-out services rendered to unconsolidated joint ventures. For the fiscal year ended December 31, 2025, fee income and other contributed $143,774 thousand, compared to $72,496 thousand in 2024 and $46,888 thousand in 2023.
Total operating revenues for the company reached $6,112,692 thousand for the year ended December 31, 2025, demonstrating top-line scale derived from continuing execution of customer leases and expansion of development capacity across major geographic operating hubs.
History and Evolution
Digital Realty Trust, Inc. was formed in 2004 to consolidate a dispersed portfolio of technology-related properties previously owned by private investment funds. Following its initial public offering on the New York Stock Exchange in October 2004, the company pioneered the institutional data center REIT model. Since its public listing, the company has completed substantial strategic capital formation, raising approximately $81 billion of capital through common equity offerings, preferred stock issuances, exchangeable and non-exchangeable bond placements, syndicated global bank credit agreements, term loan facilities, secured project debt, joint ventures, and capital recycling via non-core asset divestitures.
The strategic trajectory of Digital Realty has been shaped by transformational transactions that expanded its technical capabilities from wholesale powered base shells to retail colocation, software-defined interconnection, and international edge platforms:
- Wholesale Foundation and Public Listing (2004): Established the initial institutional framework for owning, operating, and developing large-scale, powered shell and turn-key mechanical-electrical corporate data centers across primary North American technology hubs.
- Telx Acquisition (2015): Acquired Telx for approximately $1.9 billion, establishing an immediate carrier-neutral colocation and interconnection footprint across key metropolitan aggregation hubs within the United States. This acquisition contributed $330,845 thousand in recognized goodwill.
- DuPont Fabros Technology Merger (2017): Completed an all-stock merger with DuPont Fabros Technology, Inc., adding hyperscale data center facilities and extensive expansion capacity across Northern Virginia, Chicago, and Silicon Valley. The transaction resulted in $2,592,147 thousand of recognized goodwill.
- Ascenty Investment (2018): Expanded operations into Latin America through the acquisition and subsequent joint venture structuring of Ascenty, the leading data center and dark fiber provider in Brazil, with later expansions into Chile, Mexico, and Colombia.
- Interxion Combination (2020): Closed the strategic combination with InterXion Holding N.V., providing an extensive pan-European footprint spanning carrier-dense interconnection centers in major metropolitan hubs, including Frankfurt, Paris, Amsterdam, London, and Marseille. Goodwill associated with the Interxion combination was $4,698,882 thousand as of December 31, 2025 (reflecting foreign currency exchange adjustments).
- Teraco Acquisition (2022): Completed the acquisition of a majority interest in Teraco, the premier and most densely interconnected data center platform in South Africa, operating facilities across Johannesburg, Cape Town, and Durban. Goodwill associated with the Teraco combination stood at $1,622,047 thousand as of December 31, 2025.
- Digital Core REIT Listing and Capital Recycling (2021-2025): Sponsored the public listing of Digital Core REIT on the Singapore Exchange in December 2021, establishing an institutional vehicle for recycling capital out of mature stabilized North American and European assets while preserving operational continuity and earning ongoing management fees.
- Digital Realty DC Partners NA Fund Launch (2025): Established an institutional private fund vehicle, raising over $3 billion of equity commitments supporting approximately $10 billion of total data center investment capacity. In May 2025, Digital Realty contributed operating data centers and development land parcels to the Fund for gross proceeds of approximately $937 million, followed by an additional 40% interest contribution in five operating facilities during the fourth quarter of 2025 for approximately $427 million.
Products and Services
The company provides a comprehensive spectrum of data center, power, space, and connectivity products configured to support diverse computing architectures:
- PlatformDIGITAL®: The company’s foundational global data center platform designed to scale digital business and manage data gravity challenges by unifying users, networks, clouds, computing systems, and controls near major data aggregation points.
- Colocation Solutions (0 to 1 Megawatt): Targeted at enterprise and network customers requiring high-density rack deployments from single cabinets up to 75 cabinets. These move-in-ready cage suites provide predictable electrical power, continuous cooling, multi-layered security, and fast deployment timelines ranging from days to weeks. Lease contracts in this category generally maintain duration terms of two to five years.
- Scale and Hyperscale Data Center Deployments (> 1 Megawatt): Configured for large technology companies, systems integrators, and global cloud service providers requiring multi-megawatt IT capacities. Deployments can scale from medium halls to entire dedicated facilities, executed over lease durations generally spanning five to ten or more years, with customized electrical redundancy, dedicated power delivery, and specialized cooling architectures.
- Powered Base Building®: A wholesale infrastructure solution where Digital Realty provides the foundational building envelope, physical land parcel, high-voltage power substation interconnects, and redundant telecommunications pathways, allowing customers with internal facilities engineering resources to build out and manage their own mechanical-electrical IT architecture.
- Turn-Key Flex®: Modular, pre-engineered data center architecture featuring dedicated electrical infrastructure, battery backup uninterruptible power systems (UPS), emergency backup diesel generation, and cooling infrastructure built out in defined capacity increments.
- Critical Facilities Management®: Round-the-clock, 24/7 technical operations and engineering support provided by on-site technicians, managing power quality, humidity, cooling efficiency, physical access controls, and emergency power failovers.
- Cross Connect: Physical fiber optic, coaxial, or copper cabling links established directly between two customer-defined demarcation endpoints located within a Digital Realty facility, enabling private, direct data exchange without traversing public networks.
- Metro Connect: High-bandwidth, dedicated metropolitan network links providing low-latency data transport between distinct Digital Realty data centers located across the same metropolitan area.
- ServiceFabric®: A proprietary, open software-defined interconnection and virtual orchestration platform enabling customers to provision global network connections dynamically across Digital Realty data center locations, third-party facilities, and over 305 cloud on-ramps worldwide.
- Internet Services: High-speed, resilient direct access ports connected to multiple internet service providers (ISPs) delivered via multi-service physical ports.
- Precabling: Pre-installed fiber infrastructure routed between customer footprint spaces and central Meet-Me-Rooms (MMRs), reducing physical deployment times and complexity for low-latency and high-density computing clusters.
- Pathway: Dedicated conduit and raceway infrastructure within and between data center facilities designed to support bulk-fiber optical installations for hyperscale interconnection.
Brand Portfolio
Digital Realty maintains proprietary trademarks and commercial brand identities that represent its market offerings:
- Digital Realty®: The primary corporate and operational brand under which global real estate ownership, development, and master customer contracts are executed.
- PlatformDIGITAL®: The branded global data center architecture framework unifying global locations, cross-connect infrastructure, and cloud interconnection nodes.
- Pervasive Data Center Architecture (PDx®): A structured architectural design methodology assisting global enterprises in decentralizing their IT infrastructure and addressing data gravity constraints.
- ServiceFabric®: The branded software-defined networking and connectivity orchestration platform providing dynamic multi-cloud interconnection.
- Turn-Key Flex®: The proprietary modular data center engineering and construction system designed for rapid capacity deployment.
- Powered Base Building®: The institutional product designation for unequipped or base-shell data center real estate facilities.
- Critical Facilities Management®: The company’s branded engineering, operations, and facility maintenance methodology.
- Together@Digital: The internal workplace belonging, workforce recruitment, and corporate philanthropy program.
Geographical Presence
The company maintains a global footprint across six continents, providing enterprise capacity across major technology and commercial metros. As of December 31, 2025, the breakdown of properties across wholly owned facilities and unconsolidated joint ventures encompasses the following regional distributions:
- North America: Spans 91 consolidated data center buildings (18,504 thousand rentable square feet) and 41 unconsolidated data center buildings across the United States and Canada. Primary operational markets include Northern Virginia (16 consolidated facilities; 5,200 thousand sq ft), Chicago (7 consolidated facilities; 2,230 thousand sq ft), Dallas (16 consolidated facilities; 2,660 thousand sq ft), Silicon Valley (11 consolidated facilities; 1,175 thousand sq ft), New York (10 consolidated facilities; 1,497 thousand sq ft), Portland (3 consolidated facilities; 1,147 thousand sq ft), San Francisco (5 consolidated facilities; 844 thousand sq ft), Phoenix (2 consolidated facilities; 783 thousand sq ft), Toronto (2 consolidated facilities; 593 thousand sq ft), Los Angeles (2 consolidated facilities; 750 thousand sq ft), Seattle (1 consolidated facility; 412 thousand sq ft), Houston (6 consolidated facilities; 393 thousand sq ft), Boston (2 consolidated facilities; 336 thousand sq ft), Atlanta (3 consolidated facilities; 154 thousand sq ft), Miami (1 consolidated facility; 150 thousand sq ft), and Charlotte (3 consolidated facilities; 95 thousand sq ft).
- Europe, Middle East, and Africa (EMEA): Spans 119 consolidated data center buildings (11,858 thousand rentable square feet) and 6 unconsolidated data center buildings. Key regional operating centers include Frankfurt (24 consolidated facilities; 2,102 thousand sq ft), London (13 consolidated facilities; 1,348 thousand sq ft), Amsterdam (13 consolidated facilities; 1,425 thousand sq ft), Paris (12 consolidated facilities; 1,262 thousand sq ft), Johannesburg (5 consolidated facilities; 1,681 thousand sq ft), Zurich (3 consolidated facilities; 596 thousand sq ft), Marseille (4 consolidated facilities; 558 thousand sq ft), Dublin (9 consolidated facilities; 555 thousand sq ft), Vienna (3 consolidated facilities; 356 thousand sq ft), Madrid (4 consolidated facilities; 352 thousand sq ft), Brussels (3 consolidated facilities; 338 thousand sq ft), Cape Town (2 consolidated facilities; 326 thousand sq ft), Stockholm (6 consolidated facilities; 245 thousand sq ft), Copenhagen (3 consolidated facilities; 226 thousand sq ft), Dusseldorf (3 consolidated facilities; 181 thousand sq ft), Athens (4 consolidated facilities; 148 thousand sq ft), and Durban (1 consolidated facility; 59 thousand sq ft), alongside emerging hubs in Mombasa, Nairobi, Zagreb, Maputo, Crete, and Rome.
- Asia Pacific (APAC): Comprises 11 consolidated data center buildings (1,660 thousand rentable square feet) and 42 unconsolidated facilities. Consolidated operations feature Singapore (3 facilities; 810 thousand sq ft), Sydney (4 facilities; 361 thousand sq ft), Hong Kong (1 facility; 180 thousand sq ft), Seoul (1 facility; 162 thousand sq ft), and Melbourne (2 facilities; 147 thousand sq ft). Unconsolidated joint venture platforms expand this footprint across Tokyo, Osaka, Jakarta, and Chennai.
- Latin America: Represented via the company’s unconsolidated joint venture interest in Ascenty, encompassing 36 operational data center properties located primarily across Sao Paulo, Rio de Janeiro, Fortaleza, Santiago, Bogota, and Queretaro.
Competitor Analysis
The data center colocation and digital infrastructure industry is highly competitive, characterized by rapid capital deployment, intense competition for available electrical power substations, and technological evolution. Based strictly on disclosures in the company’s Form 10-K, Digital Realty competes globally against numerous specialized data center providers, colocation operators, and traditional real estate entities in each of its primary metropolitan markets. The company’s primary competitors explicitly identified in the filing include:
- Equinix, Inc.: A global data center and colocation provider operating facilities across many of the same North American, European, and Asia Pacific metropolitan markets. Equinix is also disclosed as one of Digital Realty’s top 20 customers, generating $95,641 thousand in annualized recurring revenue across 14 locations.
- NTT: A global telecommunications and data center operating company with substantial operational facilities across North America, Europe, and the Asia Pacific region.
- Global Switch Holdings Limited: A major data center operator with scale facilities across Europe and the Asia Pacific region.
- Regional and Private Operators: Competitors include various private operators throughout the United States, as well as distinct regional data center developers and operators situated across Europe, Asia, Latin America, Africa, and Australia.
The 10-K notes that some competitors may possess advantages in specific localized markets, such as longer regional operating histories, pre-existing local relationships, or greater marketing presence. Competition centers around factors such as available power capacity, pricing, electrical redundancy levels, network density, physical security, geographic location, and access to cloud on-ramps. Furthermore, the company faces potential competition from its own hyperscale customers, who may evaluate constructing and managing their own proprietary data centers rather than leasing external capacity.
Management Discussion & Analysis (MD&A)
A rigorous review of the company’s operating results for the fiscal year ended December 31, 2025, compared to the fiscal year ended December 31, 2024, reveals key developments in operating revenues, property expenses, capital transactions, and liquidity.
Operating Revenues Breakdown
Total operating revenues grew by $557,724 thousand (or 10.0%) to $6,112,692 thousand in 2025 from $5,554,968 thousand in 2024. The company evaluates operating performance by bifurcating its property portfolio into stabilized and non-stabilized pools:
- Stabilized Portfolio Revenues: Increased by $244,685 thousand (or 6.1%) to $4,272,850 thousand in 2025, compared to $4,028,165 thousand in 2024. This improvement was driven by higher rental rates achieved on contract renewals and new leasing across all global regions, supported by the strengthening of key foreign currencies against the U.S. dollar, primarily the Euro, British pound sterling, and Singapore dollar.
- Non-Stabilized Portfolio Revenues: Increased by $241,761 thousand (or 16.6%) to $1,696,068 thousand in 2025 from $1,454,307 thousand in 2024. The net expansion was fueled by a $447.1 million increase resulting from the delivery and operational lease-up of development projects (most notably in Northern Virginia, Johannesburg, and Portland), offset by a $205.3 million reduction resulting from data centers sold or contributed to joint ventures in 2024 and 2025.
- Fee Income and Other: Advanced by $71,278 thousand (or 98.3%) to $143,774 thousand in 2025 from $72,496 thousand in 2024. The expansion was propelled by a $51.5 million increase in development and construction fit-out fees (including electrical fit-out services for joint venture assets) and a $20.7 million increase in joint venture asset and property management fees.
Operating Expenses Breakdown
Total operating expenses rose by $371,096 thousand (or 7.3%) to $5,454,200 thousand in 2025 compared to $5,083,104 thousand in 2024:
- Rental Property Operating and Maintenance (Utilities): Reached $1,426,485 thousand in 2025 compared to $1,333,416 thousand in 2024, reflecting an increase of $93,069 thousand (or 7.0%). Stabilized utility costs increased by $29,235 thousand due to higher unit power prices. Non-stabilized utilities rose by $63,834 thousand, reflecting a $129.2 million increase from utility consumption in newly completed development facilities, partially offset by a $13.1 million decline in power agreement charges and a $52.3 million reduction from properties sold or contributed.
- Rental Property Operating and Maintenance (Excluding Utilities): Rose by $95,643 thousand (or 9.7%) to $1,080,564 thousand in 2025 from $984,921 thousand in 2024. Stabilized maintenance costs rose by $60,481 thousand due to expanded data center labor and common area maintenance, while non-stabilized maintenance rose by $35,162 thousand, reflecting a $78.7 million increase across expanding facilities offset by a $43.5 million reduction from divested properties.
- Property Taxes and Insurance: Totaled $219,688 thousand in 2025 compared to $200,778 thousand in 2024, an increase of $18,910 thousand (or 9.4%). Stabilized property taxes increased by $10,882 thousand, while non-stabilized taxes expanded by $8,028 thousand due to property reassessments in Chicago, Northern Virginia, and Portland, offset by $3.8 million in divestitures.
- Depreciation and Amortization: Advanced by $122,839 thousand (or 6.9%) to $1,894,636 thousand in 2025 compared to $1,771,797 thousand in 2024, driven by newly completed development projects and equipment placed in service.
- General and Administrative: Rose by $85,459 thousand (or 17.8%) to $565,482 thousand in 2025 from $480,023 thousand in 2024, reflecting higher corporate personnel headcounts and ongoing investments in corporate information technology platforms.
- Transactions and Integration: Increased by $91,188 thousand (or 97.1%) to $185,090 thousand in 2025 from $93,902 thousand in 2024, driven by capital placement fees associated with securing equity commitments for the Fund, lease terminations in connection with acquisitions, and internal integration projects.
- Provision for Impairment: Decreased to $78,553 thousand in 2025 compared to $191,184 thousand in 2024. The 2025 charge reflected fair value write-downs on four non-core data center properties in secondary U.S. markets where current and forecasted cash flows declined. The 2024 charge reflected write-downs on non-core U.S. properties marked down in anticipation of divestiture.
Non-Operating Items and Net Income
Operating income rose to $658,492 thousand in 2025 compared to $471,864 thousand in 2024. Among non-operating items:
- Gain on Disposition of Properties, net: Totaled $995,586 thousand in 2025 compared to $595,825 thousand in 2024, an increase of $399,761 thousand. The 2025 gain was driven by the contribution of data centers and land sites to the Fund ($903.5 million total gain, comprising an initial $873 million gain upon launch and $30.2 million on subsequent asset contributions), contributions to the Blackstone joint venture ($58 million), sales of non-core data centers in Atlanta, Miami, Boston, and Dallas ($33 million), and Mitsubishi JV ownership adjustments ($5.1 million).
- Equity in Loss of Unconsolidated Entities: Registered at $(31,987) thousand in 2025 compared to $(120,138) thousand in 2024. The reduction in losses was heavily influenced by foreign exchange debt remeasurements within the Ascenty joint venture.
- Interest Expense: Decreased by $14,889 thousand to $437,947 thousand in 2025 from $452,836 thousand in 2024, as lower average drawn balances on revolving credit facilities and term loans offset the coupon expense of new unsecured senior notes.
- Income Tax Expense: Decreased by $22,720 thousand to $32,040 thousand in 2025 from $54,760 thousand in 2024, primarily due to favorable tax legislation enacted in a foreign jurisdiction.
- Consolidated Net Income: Reached $1,313,165 thousand in 2025, compared to $588,327 thousand in 2024 and $950,312 thousand in 2023.
- Net Income Available to Common Stockholders: Totaled $1,267,865 thousand in 2025, compared to $561,766 thousand in 2024 and $908,114 thousand in 2023.
Cash Flow Dynamics
Cash, cash equivalents, and restricted cash stood at $3,458,290 thousand as of December 31, 2025 (including $6,643 thousand in restricted cash), reflecting a net decrease of $305,074 thousand during the year:
- Operating Activities: Generated net cash inflows of $2,412,136 thousand in 2025, an increase of $150,659 thousand compared to $2,261,477 thousand in 2024, driven by higher operational revenue from newly delivered capacity and expanded interest income from cash reserves.
- Investing Activities: Used net cash of $2,230,472 thousand in 2025 compared to $1,906,157 thousand in 2024. Expenditures on real estate improvements rose to $3,181,179 thousand, while asset acquisition spend declined to $321,246 thousand. Gross proceeds from property sales and joint venture contributions provided $1,619,624 thousand in liquidity, while net capital contributions to unconsolidated joint ventures absorbed $365,680 thousand.
- Financing Activities: Used net cash of $486,738 thousand in 2025, compared to generating net cash inflows of $2,063,433 thousand in 2024. During 2025, debt borrowings provided $5,291,715 thousand across senior notes and credit facility draws, while debt repayments absorbed $5,101,137 thousand (including the paydown of £400 million in sterling notes, €650 million in senior notes, and the early redemption of €1.075 billion in notes due 2026). Net proceeds from common stock sales under the ATM program contributed $1,106,031 thousand, while dividends and partnership distributions absorbed $1,728,466 thousand.
Board of Directors and Leadership Team
The company is governed by an experienced board of directors and an executive leadership team possessing extensive backgrounds across real estate investment, capital markets, telecommunications, and corporate technology infrastructure.
Executive Officers
- Andrew P. Power: President & Chief Executive Officer. Directs global business strategy, capital allocation, customer alignment, and organizational leadership across the worldwide operating footprint.
- Matthew R. Mercier: Chief Financial Officer. Oversees global financial operations, capital markets execution, accounting, tax planning, financial reporting, and investor relations.
- Christine B. Kornegay: Chief Accounting Officer. Manages corporate accounting, global financial controls, SEC compliance, and financial reporting systems.
Board of Directors
- Mary Hogan Preusse: Chairman of the Board. Independent director providing extensive expertise in real estate investment trust analysis, portfolio management, and corporate governance.
- Andrew P. Power: Director, President & Chief Executive Officer.
- Stephen R. Bolze: Independent Director. Former senior executive at General Electric and infrastructure investment specialist.
- VeraLinn Jamieson: Independent Director. Retired Lieutenant General of the United States Air Force, offering strategic perspective on cyber intelligence, national security, and operational defense.
- Kevin J. Kennedy: Independent Director. Technology and telecommunications industry veteran with extensive executive leadership experience.
- William G. LaPerch: Independent Director. Telecommunications network infrastructure executive with deep expertise in global fiber routing.
- Jean F.H.P. Mandeville: Independent Director. International corporate finance executive with European leadership experience.
- Afshin Mohebbi: Independent Director. Telecommunications and technology corporate executive with extensive investment background.
- Mark R. Patterson: Independent Director. Real estate investment banking executive and institutional investment advisor.
- Susan Swanezy: Independent Director. Real estate private equity capital markets specialist with broad institutional investor relationships.
Future Strategy
The company’s primary long-term business objectives center on maximizing sustainable growth in earnings and funds from operations (FFO) per share, optimizing risk-adjusted returns on invested capital, and returning cash to stockholders through regular dividends. The official forward-looking corporate strategy revolves around five pillars:
- Achieving Superior Risk-Adjusted Returns: Digital Realty deploys underwriting parameters on all development projects and lease negotiations to generate strong yields above its cost of capital. Development projects are systematically prioritized based on pre-leasing demand commitments, market absorption dynamics, and regional power availability.
- Prudential Capital Allocation and Balance Sheet Management: Management maintains a conservative capital structure designed to withstand macroeconomic shifts and interest rate cycles. Financial targets include maintaining a net debt-to-Adjusted EBITDA ratio around 5.5x, maintaining a fixed-charge coverage ratio exceeding 3.0x, and limiting variable-rate debt exposure to less than 20% of total indebtedness (achieved at 7.8% variable-rate debt as of December 31, 2025). Capital recycling through asset sales, the Digital Core REIT platform, and the hyperscale Digital Realty DC Partners NA Fund enables the company to de-lever and redeploy capital into higher-yielding development sites.
- Expanding PlatformDIGITAL® and Product Innovation: The company focuses on expanding its full-spectrum offerings, bridging the gap between high-density retail colocation and multi-hundred-megawatt hyperscale campuses. Leveraging ServiceFabric®, Digital Realty aims to capture hybrid cloud and distributed enterprise workloads by simplifying global private interconnection.
- Accelerating Global Connected Campuses: Digital Realty continues expanding its footprint around existing campus environments where land holdings and power allocations exist. Expanding within dense campuses generates operational scale, lowers per-megawatt construction costs, and reinforces network ecosystems that attract additional enterprise tenants.
- Sustainability Leadership and Energy Sourcing: Addressing long-term climate risks and resource availability through energy efficiency investments, water conservation technologies, and renewable power contracts. The company has validated Science-Based Target initiative (SBTi) commitments to reduce Scope 1 and 2 emissions by 42% by 2030 (against a 2023 baseline) and Scope 3 emissions by 25%, while matching regional power consumption with clean, renewable energy sources.
Key Strengths
The company benefits from competitive moats and operational capabilities that reinforce its industry position:
- Global Scale and Network-Dense Footprint: With 310 data centers spanning more than 55 metropolitan areas across 30 countries and six continents, Digital Realty possesses a global presence that allows multinational customers to contract seamlessly through a single provider.
- Core Internet Gateways and Data Gravity: The company owns key metropolitan interconnection hubs containing over 232,000 cross connects. These facilities serve as primary data transit junctions where major carriers, cloud providers, and digital platforms congregate, creating self-reinforcing network ecosystems that cannot be easily replicated.
- Disciplined Capital Access and Investment-Grade Balance Sheet: As an investment-grade issuer, the company enjoys access to diverse international debt and equity capital pools. In 2025 alone, the company raised over $4.3 billion in long-term euro-denominated senior notes with maturities extending out to 2037, maintaining an average effective portfolio borrowing rate of 2.90%.
- Diverse, High-Credit Customer Base: The platform serves more than 5,000 customers. Its largest single tenant accounted for 11.7% of annualized recurring revenue as of December 31, 2025, and no other customer represented more than 9.0%. Approximately 50.9% of recurring revenue is generated by the top 20 customers, which comprise well-capitalized cloud service providers, investment-grade financial firms, and software platforms.
- Extensive Development Pipeline and Land Bank: Digital Realty held 9,679 thousand square feet of space under active development and 4,696 thousand square feet held for future development as of December 31, 2025. This real estate and infrastructure pipeline accommodates over 3,500 megawatts of future IT load capacity, including more than 1,000 megawatts developable in the Northern Virginia market.
- Sustainability Recognition: Awarded the Nareit “Leader in the Light” award for data centers for nine consecutive years, demonstrating institutional leadership in carbon footprint reduction, ENERGY STAR certifications, and green lease standards.
Key Challenges and Risks
The enterprise is subject to operational, financial, and macroeconomic risks detailed in its SEC filings:
- Power Availability, Grid Reliability, and Power Pricing: Data centers require massive quantities of continuous electrical power. The company depends on local utility companies and regional power grids. Power constraints or moratoriums imposed by local authorities or grid operators can delay development deliveries and impede expansion. Furthermore, volatility in power commodity markets, grid modernization surcharges, and green transition tariffs could increase operating costs that may not be fully passed through to customers.
- Intense Market Competition and Supply Additions: The company faces competition from established operators such as Equinix, Inc., NTT, and Global Switch, as well as well-funded private equity consortiums and sovereign wealth platforms entering the sector. Aggressive speculative development in key metros could create localized oversupply, putting downward pressure on market rents and renewal rates.
- Customer Concentration and Hyperscaler Self-Build Risk: The company’s top three customers generate approximately 26% of total annualized recurring revenue. Hyperscale cloud and enterprise technology customers may choose to build and operate their own proprietary data centers, bypass third-party platforms, or demand aggressive pricing concessions during contract renewals.
- Substantial Indebtedness and Capital Markets Exposure: With $18.6 billion in total consolidated debt, the company requires continuous access to debt and equity capital to refinance maturing obligations and fund capital expenditures ($3.25 billion to $3.75 billion expected in 2026). Rising benchmark interest rates increase borrowing costs upon refinancing, while adverse changes in debt credit ratings could limit capital access.
- Geopolitical and International Currency Volatility: Operating across 30 nations exposes the business to foreign currency exchange fluctuations (notably in the Euro, British pound, South African rand, and Brazilian real). Foreign operations are also subject to cross-border capital restrictions, unique tax codes, labor collective bargaining agreements, and geopolitical conflicts.
- Global Supply Chain Disruptions and Construction Overruns: Developing mission-critical infrastructure requires specialized mechanical and electrical equipment with extended lead times, such as diesel backup generators, power transformers, UPS units, and liquid cooling systems. Global supply disruptions, trade tariffs, and specialized labor shortages could lead to delivery delays, project cost inflation, and contractual financial penalties under customer service-level agreements.
- Information Security, Operational Continuity, and Physical Perils: Facilities are exposed to cyberattacks, physical infrastructure failures, cooling plant breakdowns, and natural catastrophes (floods, earthquakes, hurricanes). Substantially all customer contracts mandate rigid uptime service level commitments; mechanical or power disruptions can trigger service level credits, legal liability, or lease terminations.
- REIT Compliance and Taxation Rules: Failure to maintain qualification as a REIT would result in corporate-level federal and state income tax liabilities, reducing cash available for distributions and debt service. Additionally, changes in domestic or international corporate tax structures, such as the OECD Pillar Two global minimum tax regulations, could increase foreign tax liabilities.
Conclusion and Strategic Outlook
Digital Realty Trust, Inc. occupies a central position within global digital infrastructure, serving as an essential real estate foundation for enterprise computing, multi-cloud interconnection, and accelerating artificial intelligence workloads. During fiscal year 2025, the company demonstrated top-line operating resilience, generating over $6.1 billion in revenues and achieving notable progress in its strategic capital initiatives through the successful launch of the Digital Realty DC Partners NA Fund and continued joint-venture development execution. Supported by a development pipeline that accommodates over 3,500 megawatts of future capacity, a conservative debt structure with fixed-rate hedging, and an established global footprint, Digital Realty is positioned to address the ongoing digital transformation while managing power constraints, supply chain timelines, and evolving capital costs.
Official Site
For more corporate, investor, and operational information, visit the official corporate portal: https://www.digitalrealty.com. Official filings, shareholder reports, and regulatory exhibits are publicly accessible through the SEC EDGAR Filing Database.
Financial Statements
All monetary values in the following financial statement tables are presented in thousands of U.S. dollars unless otherwise specified.
Consolidated Income Statements
| Line Item | Year Ended December 31, 2025 | Year Ended December 31, 2024 | YoY Growth (%) |
|---|---|---|---|
| Rental and other services | $5,968,918 | $5,482,472 | +8.87% |
| Fee income and other | $143,774 | $72,496 | +98.32% |
| Total operating revenues | $6,112,692 | $5,554,968 | +10.04% |
| Rental property operating and maintenance | $2,507,049 | $2,318,337 | +8.14% |
| Property taxes and insurance | $219,688 | $200,778 | +9.42% |
| Depreciation and amortization | $1,894,636 | $1,771,797 | +6.93% |
| General and administrative | $565,482 | $480,023 | +17.80% |
| Transactions and integration | $185,090 | $93,902 | +97.11% |
| Provision for impairment | $78,553 | $191,184 | -58.91% |
| Other operating expenses | $3,702 | $27,083 | -86.33% |
| Total operating expenses | $5,454,200 | $5,083,104 | +7.30% |
| Operating income | $658,492 | $471,864 | +39.55% |
| Equity in loss of unconsolidated entities | $(31,987) | $(120,138) | -73.37% |
| Gain on disposition of properties, net | $995,586 | $595,825 | +67.09% |
| Other income, net | $161,052 | $154,243 | +4.41% |
| Interest expense | $(437,947) | $(452,836) | -3.29% |
| Gain (loss) on debt extinguishment and modifications | $9 | $(5,871) | N/M |
| Income tax expense | $(32,040) | $(54,760) | -41.49% |
| Net income | $1,313,165 | $588,327 | +123.20% |
| Net (income) loss attributable to noncontrolling interests | $(4,576) | $14,163 | N/M |
| Net income attributable to Digital Realty Trust, Inc. | $1,308,589 | $602,490 | +117.20% |
| Preferred stock dividends | $(40,724) | $(40,724) | 0.00% |
| Net income available to common stockholders | $1,267,865 | $561,766 | +125.69% |
Consolidated Balance Sheets
| Balance Sheet Item | As of December 31, 2025 | As of December 31, 2024 | YoY Growth (%) |
|---|---|---|---|
| Investments in properties, net | $26,433,617 | $24,120,782 | +9.59% |
| Investments in unconsolidated entities | $3,427,903 | $2,639,800 | +29.85% |
| Net investments in real estate | $29,861,520 | $26,760,582 | +11.59% |
| Operating lease right-of-use assets, net | $1,135,645 | $1,178,853 | -3.67% |
| Cash and cash equivalents | $3,451,647 | $3,870,891 | -10.83% |
| Accounts and other receivables, net | $1,358,895 | $1,257,464 | +8.07% |
| Deferred rent, net | $750,907 | $642,456 | +16.88% |
| Goodwill | $9,711,953 | $8,929,431 | +8.76% |
| Customer relationship value, deferred leasing costs and other intangibles, net | $2,134,698 | $2,178,054 | -1.99% |
| Assets held for sale and contribution | $349,826 | $0 | N/M |
| Other assets | $655,377 | $465,885 | +40.67% |
| Total assets | $49,410,468 | $45,283,616 | +9.11% |
| Global revolving credit facilities, net | $899,090 | $1,611,308 | -44.20% |
| Unsecured term loans, net | $439,536 | $386,903 | +13.60% |
| Unsecured senior notes, net of discount | $16,194,441 | $13,962,852 | +15.98% |
| Secured and other debt, net of discount | $869,068 | $753,314 | +15.37% |
| Operating lease liabilities | $1,253,217 | $1,294,219 | -3.17% |
| Accounts payable and other accrued liabilities | $2,600,979 | $2,056,215 | +26.49% |
| Deferred tax liabilities | $1,124,724 | $1,084,562 | +3.70% |
| Accrued dividends and distributions | $428,337 | $418,661 | +2.31% |
| Security deposits and prepaid rents | $754,920 | $539,802 | +39.85% |
| Obligations associated with assets held for sale and contribution | $182 | $0 | N/M |
| Total liabilities | $24,564,494 | $22,107,836 | +11.11% |
| Redeemable noncontrolling interests | $1,498,975 | $1,433,185 | +4.59% |
| Preferred Stock | $731,690 | $731,690 | 0.00% |
| Common Stock | $3,406 | $3,337 | +2.07% |
| Additional paid-in capital | $29,350,487 | $28,079,738 | +4.53% |
| Accumulated dividends in excess of earnings | $(6,690,722) | $(6,292,085) | +6.34% |
| Accumulated other comprehensive loss, net | $(469,198) | $(1,182,283) | -60.31% |
| Total stockholders’ equity | $22,925,663 | $21,340,397 | +7.43% |
| Noncontrolling interests | $421,336 | $402,198 | +4.76% |
| Total equity | $23,346,999 | $21,742,595 | +7.38% |
| Total liabilities and equity | $49,410,468 | $45,283,616 | +9.11% |
Consolidated Statements of Cash Flows
| Cash Flow Activity | Year Ended December 31, 2025 | Year Ended December 31, 2024 | YoY Growth (%) |
|---|---|---|---|
| Net cash provided by operating activities | $2,412,136 | $2,261,477 | +6.66% |
| Improvements to investments in real estate | $(3,181,179) | $(2,831,740) | +12.34% |
| Cash paid for business combination / asset acquisitions, net | $(321,246) | $(508,001) | -36.76% |
| Investments in and advances to unconsolidated entities | $(519,098) | $(315,623) | +64.47% |
| Return of investment from unconsolidated entities | $153,418 | $99,864 | +53.63% |
| Proceeds from sale of assets | $1,619,624 | $1,764,835 | -8.23% |
| Other investing activities, net | $18,009 | $(115,492) | N/M |
| Net cash used in investing activities | $(2,230,472) | $(1,906,157) | +17.01% |
| Proceeds from credit facilities | $1,802,807 | $1,636,351 | +10.17% |
| Payments on credit facilities | $(2,586,749) | $(1,715,044) | +50.83% |
| Borrowings on secured / unsecured debt | $3,488,908 | $2,234,999 | +56.10% |
| Repayments on secured / unsecured debt | $(2,514,388) | $(2,119,007) | +18.66% |
| Capital contributions from (distributions to) noncontrolling interests, net | $3,574 | $(21,418) | N/M |
| Proceeds from issuance of common stock, net | $1,106,031 | $3,650,771 | -69.70% |
| Payments of dividends and distributions | $(1,728,466) | $(1,633,247) | +5.83% |
| Other financing activities, net | $(58,455) | $30,028 | N/M |
| Net cash (used in) provided by financing activities | $(486,738) | $2,063,433 | N/M |
| Net (decrease) increase in cash, cash equivalents and restricted cash | $(305,074) | $2,418,753 | N/M |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | $(113,336) | $(178,523) | -36.51% |
| Cash, cash equivalents and restricted cash at beginning of period | $3,876,700 | $1,636,470 | +136.89% |
| Cash, cash equivalents and restricted cash at end of period | $3,458,290 | $3,876,700 | -10.79% |
Subsidiaries & Joint Ventures
The following list details the material operating subsidiaries and joint venture entities disclosed in the consolidated financial statements:
- Digital Realty Trust, L.P. (Operating Partnership): Maryland limited partnership through which Digital Realty Trust, Inc. conducts its operations and holds substantially all business assets. Digital Realty Trust, Inc. is the sole general partner and owned an approximate 98.2% common general partnership interest as of December 31, 2025.
- Digital Dutch Finco B.V.: Indirect wholly owned financing subsidiary incorporated in the Netherlands; issuer of guaranteed senior notes and term loan facilities.
- Digital Euro Finco, LLC: Indirect wholly owned financing subsidiary; issuer of guaranteed senior notes.
- Digital Intrepid Holding B.V.: Indirect wholly owned subsidiary organized in the Netherlands; issuer of Swiss franc-denominated guaranteed notes and holding company for European operations.
- Digital Services, Inc.: Wholly owned domestic taxable REIT subsidiary (TRS).
- Teraco Platform: Consolidated subsidiary platform in South Africa operating data centers across Johannesburg, Cape Town, and Durban, with a redeemable noncontrolling interest held by Rollover Shareholders.
- Interxion: Consolidated European data center, colocation, and interconnection platform.
- Digital Realty DC Partners NA Fund: Unconsolidated strategic capital venture formed in 2025; Digital Realty acts as general partner and retains a 20% equity interest in operating assets and development projects.
- Blackstone Joint Ventures: Unconsolidated development joint ventures across Frankfurt, Paris, and Northern Virginia; ownership ranges from 20% to 50%.
- GI Partners Joint Venture: Unconsolidated joint venture owning hyperscale data center facilities in the Chicago metropolitan area; Digital Realty holds a 20% to 25% equity interest.
- Mitsubishi Joint Venture / MC Digital Realty: Unconsolidated joint ventures in Dallas, Texas (20% retained interest) and Japan (50% equity interest).
- TPG Real Estate Joint Venture: Unconsolidated joint venture owning three hyperscale data center buildings in Northern Virginia; Digital Realty holds a 20% equity interest.
- Realty Income Joint Venture: Unconsolidated joint venture developing data center facilities in Northern Virginia; Digital Realty holds a 20% equity interest.
- Bersama Digital Infrastructure Asia Joint Venture (Digital Realty Bersama): Unconsolidated joint venture formed in March 2025 to develop and operate data centers in Jakarta, Indonesia; Digital Realty holds a 50% equity interest.
- Ascenty: Unconsolidated joint venture operating data centers in Latin America (Brazil, Chile, Mexico, and Colombia); Digital Realty holds a 49% equity interest (VIE).
- Digital Connexion: Unconsolidated joint venture in India; Digital Realty holds a 33% equity interest.
- Digital Core REIT (DCREIT): Unconsolidated publicly traded Singapore REIT (SGX: DCRU); Digital Realty owns 32% of units and direct property co-investments (10% in North American properties, 35% in Frankfurt).
- Other Unconsolidated Joint Ventures: Clise (50%), Mapletree (20%), Menlo (20%), Walsh (88%), Medallion (60%), Mivne (50%), and Lumen (50%).
Other Investments & Holdings
Strategic and minority investments held by the Company include:
- Digital Core REIT Units (SGX: DCRU): 420 million units owned as of December 31, 2025, representing a 32% equity interest, with an estimated fair market value of $214 million based on the market price of $0.51 per unit.
- Ascenty Variable Interest Entity (VIE): 49% equity interest in Ascenty, which includes an approximate 2% interest held by a noncontrolling interest holder with a carrying value of $23 million as of December 31, 2025.
- Long-Term Renewable Energy Power Purchase Agreements: Long-term fixed-price power contracts ranging from 5 to 20 years to procure renewable power and Energy Attribute Certificates (EACs), generating 1,240 GWh of EACs in 2024.
- Non-Derivatives Designated as Net Investment Hedges: 545 million Swiss francs of notes issued by Digital Intrepid Holding B.V. designated as net investment hedges of Swiss subsidiaries.
- Cross-Currency Interest Rate Swaps: $2.3 billion notional amount of cross-currency interest rate swaps designated as net investment hedges to convert U.S. dollar fixed-rate debt into foreign currencies.
Physical Properties
Operating Portfolio and Development Footprint
As of December 31, 2025, the Company’s global footprint encompassed 310 data centers (221 consolidated and 89 held in unconsolidated entities), totaling 43,208 thousand net rentable square feet, 9,679 thousand square feet under active development, and 4,696 thousand square feet held for development.
| Metropolitan Area / Region | Data Center Buildings | Net Rentable Square Feet (in thousands) | Space Under Active Development (Sq Ft in thousands) | Space Held for Development (Sq Ft in thousands) | Occupancy Percentage |
|---|---|---|---|---|---|
| Northern Virginia | 16 | 5,200 | 309 | 283 | 95.1% |
| Chicago | 7 | 2,230 | 565 | 68 | 93.9% |
| New York | 10 | 1,497 | 70 | 28 | 72.2% |
| Dallas | 16 | 2,660 | 408 | 246 | 82.6% |
| Portland | 3 | 1,147 | 0 | 0 | 99.9% |
| Silicon Valley | 11 | 1,175 | 13 | 37 | 81.7% |
| Phoenix | 2 | 783 | 19 | 0 | 75.6% |
| Toronto | 2 | 593 | 0 | 135 | 96.5% |
| San Francisco | 5 | 844 | 0 | 0 | 60.1% |
| Seattle | 1 | 412 | 0 | 0 | 67.5% |
| Atlanta | 3 | 154 | 68 | 314 | 76.7% |
| Los Angeles | 2 | 750 | 0 | 104 | 86.6% |
| Houston | 6 | 393 | 0 | 14 | 69.7% |
| Boston | 2 | 336 | 0 | 51 | 39.4% |
| Austin | 1 | 86 | 0 | 0 | 60.9% |
| Miami | 1 | 150 | 0 | 12 | 85.4% |
| Charlotte | 3 | 95 | 0 | 0 | 94.4% |
| North America Consolidated Total | 91 | 18,504 | 1,452 | 1,290 | 85.5% |
| Frankfurt | 24 | 2,102 | 1,071 | 0 | 81.9% |
| London | 13 | 1,348 | 77 | 76 | 65.4% |
| Amsterdam | 13 | 1,425 | 202 | 19 | 81.4% |
| Paris | 12 | 1,262 | 622 | 0 | 84.4% |
| Johannesburg | 5 | 1,681 | 530 | 0 | 83.3% |
| Zurich | 3 | 596 | 0 | 0 | 78.2% |
| Marseille | 4 | 558 | 237 | 378 | 78.1% |
| Dublin | 9 | 555 | 0 | 0 | 76.1% |
| Madrid | 4 | 352 | 56 | 0 | 79.1% |
| Vienna | 3 | 356 | 133 | 0 | 82.2% |
| Cape Town | 2 | 326 | 402 | 0 | 89.3% |
| Brussels | 3 | 338 | 0 | 0 | 70.0% |
| Copenhagen | 3 | 226 | 0 | 99 | 72.7% |
| Stockholm | 6 | 245 | 0 | 0 | 46.4% |
| Dusseldorf | 3 | 181 | 55 | 0 | 50.8% |
| Athens | 4 | 148 | 61 | 0 | 82.8% |
| Durban | 1 | 59 | 0 | 0 | 69.6% |
| Mombasa | 2 | 37 | 0 | 21 | 47.3% |
| Nairobi | 1 | 16 | 75 | 0 | 66.7% |
| Zagreb | 1 | 34 | 0 | 0 | 66.8% |
| Maputo | 1 | 3 | 0 | 0 | 45.7% |
| Crete | 1 | 11 | 0 | 0 | 6.1% |
| Rome | 1 | 0 | 37 | 0 | 100.0% |
| Lisbon | 0 | 0 | 0 | 44 | 0.0% |
| Barcelona | 0 | 0 | 144 | 0 | 0.0% |
| EMEA Consolidated Total | 119 | 11,858 | 3,701 | 638 | 77.9% |
| Singapore | 3 | 810 | 0 | 80 | 89.9% |
| Sydney | 4 | 361 | 0 | 88 | 83.3% |
| Hong Kong | 1 | 180 | 0 | 104 | 88.2% |
| Melbourne | 2 | 147 | 0 | 0 | 90.3% |
| Seoul | 1 | 162 | 1,025 | 0 | 51.5% |
| Asia Pacific Consolidated Total | 11 | 1,660 | 1,025 | 272 | 84.6% |
| Managed Unconsolidated Entities Total | 40 | 7,000 | 2,441 | 409 | 93.7% |
| Non-Managed Unconsolidated Entities Total | 49 | 4,186 | 1,061 | 2,087 | 85.3% |
| Total Portfolio | 310 | 43,208 | 9,679 | 4,696 | 84.7% |
Principal Corporate & Regional Offices
- Principal Executive Offices: 2323 Bryan Street, Suite 1800, Dallas, Texas 75201.
- Regional U.S. Offices: Boston, Massachusetts; Chicago, Illinois; Dallas, Texas; Los Angeles, California; New York, New York; Northern Virginia; San Francisco, California.
- Regional International Offices: Amsterdam, Netherlands; Dublin, Ireland; London, United Kingdom; Singapore; Sydney, Australia; Tokyo, Japan; Hong Kong.
Investments and Capital Expenditure
Capital Expenditures Breakdown
| Expenditure Category (Cash Basis) | Year Ended December 31, 2025 (in thousands) | Year Ended December 31, 2024 (in thousands) | YoY Growth (%) |
|---|---|---|---|
| Development projects | $2,541,138 | $2,260,692 | +12.41% |
| Enhancement and improvements | $28,321 | $35,243 | -19.64% |
| Recurring capital expenditures | $343,925 | $305,712 | +12.50% |
| Total capital expenditures (excluding indirect costs) | $2,913,384 | $2,601,647 | +11.98% |
| Capitalized interest | $127,200 | $118,900 | +6.98% |
| Capitalized employee compensation and overhead | $140,600 | $111,200 | +26.44% |
| Total indirect costs capitalized | $267,800 | $230,100 | +16.38% |
Consolidated Construction Projects in Progress (as of December 31, 2025)
| Project Category | Current Investment (in thousands) | Future Investment (in thousands) | Total Estimated Cost (in thousands) |
|---|---|---|---|
| Future Development Capacity | $2,758,950 | $2,948,899 | $5,707,849 |
| Data Center Construction | $2,102,068 | $2,568,611 | $4,670,679 |
| Equipment Pool and Other Inventory | $279,942 | $0 | $279,942 |
| Campus, Tenant Improvements and Other | $263,408 | $257,176 | $520,584 |
| Consolidated Land Held and Development Construction in Progress | $5,404,368 | $5,774,686 | $11,179,054 |
- Research and Development (R&D): The Company owns, acquires, develops, and operates data center properties and does not engage in separate, reportable research and development expenditures under U.S. GAAP.
- 2026 Expected Capital Expenditures: The Company expects to incur approximately $3.25 billion to $3.75 billion of capital expenditures during the year ending December 31, 2026, inclusive of joint venture contributions and net of partner contributions.
- Open Construction Commitments: As of December 31, 2025, open construction contract commitments totaled approximately $2.6 billion, including reimbursable amounts of $110.6 million.
Share Capital and Outstanding Shares
| Security Class | Par Value | Shares / Units Authorized | Issued and Outstanding as of December 31, 2025 | Issued and Outstanding as of December 31, 2024 |
|---|---|---|---|---|
| Common Stock (Digital Realty Trust, Inc.) | $0.01 | 502,000,000 | 343,557,430 | 336,636,742 |
| Preferred Stock (Digital Realty Trust, Inc.) | $0.01 | 110,000,000 | 30,200,000 | 30,200,000 |
| — Series J Cumulative Redeemable Preferred Stock (5.250%) | $0.01 | N/A | 8,000,000 | 8,000,000 |
| — Series K Cumulative Redeemable Preferred Stock (5.850%) | $0.01 | N/A | 8,400,000 | 8,400,000 |
| — Series L Cumulative Redeemable Preferred Stock (5.200%) | $0.01 | N/A | 13,800,000 | 13,800,000 |
| Operating Partnership Common Units (Held by Parent / General Partner) | N/A | N/A | 343,557,430 | 336,636,742 |
| Operating Partnership Common Units (Held by Third Parties / Limited Partners) | N/A | N/A | 4,045,000 | 4,049,000 |
| Operating Partnership Incentive Units (Held by Employees and Directors) | N/A | N/A | 2,144,000 | 2,086,000 |
| Operating Partnership Preferred Units | N/A | N/A | 30,200,000 | 30,200,000 |
| Treasury Stock | $0.01 | N/A | 0 | 0 |
- Common Shares Outstanding as of February 9, 2026: 343,615,444 common shares.
- At-the-Market (ATM) Equity Program Capacity: As of December 31, 2025, approximately $1.9 billion of common stock remained available for issuance under the 2024 Sales Agreement.
- Exchangeable Senior Notes: 1.875% Exchangeable Senior Notes due 2029 ($1.15 billion principal amount) with an initial exchange rate of 4.7998 shares per $1,000 principal amount (exchange price of approximately $208.34 per share).
- Liquidation Preference of Preferred Stock: $25.00 per share ($755,000 thousand total liquidation preference across Series J, K, and L).
Frequently Asked Questions
What is the core business structure of Digital Realty Trust, Inc.?
Digital Realty Trust, Inc. operates as a real estate investment trust (REIT) structured as an umbrella partnership REIT (UPREIT). The Parent serves as the sole general partner of Digital Realty Trust, L.P. (the Operating Partnership), holding an approximate 98.2% common general partnership interest as of December 31, 2025. The Operating Partnership directly and indirectly owns, develops, and operates the real estate and technology infrastructure assets.
How large is Digital Realty’s global data center portfolio?
As of December 31, 2025, the company’s global portfolio included 310 data centers containing approximately 57.6 million rentable square feet, including 89 data centers held through unconsolidated joint ventures. The portfolio spans more than 55 metropolitan markets across 30 countries on six continents, including facilities in North America, Europe, Latin America, Asia, Africa, and Australia.
How does Digital Realty manage its exposure to floating interest rates?
The company maintains a policy of limiting unhedged floating-rate debt to less than 20% of its total outstanding debt. As of December 31, 2025, approximately 92.2% of the company’s $18.6 billion in total consolidated indebtedness was subject to fixed interest rates or variable rates hedged via interest rate swaps, leaving only 7.8% in unhedged variable-rate debt. The total effective portfolio borrowing interest rate was 2.90%.
What were the financial results of the Digital Realty DC Partners NA Fund in 2025?
During the first half of 2025, Digital Realty launched the Fund, raising more than $3 billion of equity commitments. In May 2025, the company contributed operating data centers and development land to the Fund, receiving approximately $937 million in gross proceeds, recognizing an initial gain on disposition of $873 million, and retaining an equity investment in the underlying assets of $661 million. An additional 40% interest in five operating data centers was contributed in the fourth quarter for approximately $427 million, yielding an additional gain of $30.2 million.
What is the status of the SEC investigation into cybersecurity disclosures mentioned in the 2025 10-K?
Digital Realty cooperated with the Division of Enforcement of the U.S. Securities and Exchange Commission in an investigation regarding the adequacy of disclosures concerning cybersecurity risks and disclosure controls. By letter dated December 22, 2025, the SEC Division of Enforcement informed the company that it had concluded the investigation and did not intend to recommend an enforcement action against Digital Realty.