Digital Realty reported quarterly earnings of $1.9 billion, up 21 percent over the same time last year.. The data center real estate investment trust (REIT) reported record overall leasing activity and strong growth in its interconnection business, but shares fell slightly on earnings.. – Digital Realty.
Total leasing for the quarter was $855 million, with signings in the 0-1MW category (including interconnection) exceeding last quarter’s record by 40 percent. Total greater-than-a-megawatt leasing reached $689m, “driven by a new high watermark in pricing,” the company said..
Total hyperscale bookings of $689m were another record.. Digital Realty’s total backlog similarly hit a new record of $2.5bn, including 2028 revenue.. “Demand was broad-based across geographies, customer segments and deployment types,” CEO Andy Power said in an earnings call.. “In addition to two sizable hyperscale leases signed in early July in Northern Virginia, leasing was strong in APAC and exceeded our prior regional record by more than 600 percent.”.
CFO Matt Mercier added: “This quarter, the 500kW-1MW subsegment was particularly strong, driven by large enterprise and service provider deployments. We also saw a large network architecture deployment by one of the leading AI labs across 15 of our sites in EMEA.. “The sites serve as interconnection hubs, giving the customer direct private connectivity to cloud providers, network carriers and enterprise customers within each region.”.
Digital Realty spent $1.5 billion in development capex this past quarter, for a total of $3.3bn so far this year.. The company’s development pipeline is 1.5GW under construction at a total expected cost of $22bn. The pipeline is 63 percent pre-leased..
Despite the revenue growth and total year guidance being raised, shares in the company fell amid broader uncertainty in the AI data center market.. “We have very little exposure, less than two percent, to some of the noise and names that people are worried about,” Power said on CNBC, following concerns about neocloud debt.. 27 Oct 2026
