Digital Realty Company Profile (2026): Hyperscale Backbone
Company Profile | AI Infrastructure & Data Centers | Updated August 2026
Digital Realty: The Hyperscale Backbone
Digital Realty (NYSE: DLR) is second largest data center REIT with 309 data centers including 89 unconsolidated as of March 31 2026, ~3.0 GW IT load capacity. FY2025 total annual revenue $6.112B with Adjusted EBITDA $3.34B per Business Remarks record, up from guidance $5.8-5.9B early 2025 → $5.93-6.03B Q2 → $6.03-6.08B Q3. Q3 2025 bookings $201M annual GAAP rental, $65M from 0-1MW + $20M interconnection. Q2 2025 revenue $1.49B vs $1.45B estimate.
Executive Summary
Digital Realty leases managed data centers to clients cloud, IT, social networking, communications, manufacturing. Flexibility makes it core component of operator strategies worldwide. Q1 2025 revenue ~$1.4B net income $106M Core FFO $1.77/share, 16% YoY. Q2 2025 revenue $1.49B vs $1.45B estimate, adjusted EBITDA +13% YoY reflecting data center revenue + fee income. Same capital cash NOI growth Q2 healthy +4.4% YoY driven 5.9% data center revenue, H1 2025 +3.4%. Q3 2025 net income $67.81M $0.15/share vs $51.19M $0.09 prior year, revenue $1.577B +10.2% YoY beating consensus, bookings expected generate $201M annual GAAP rental at share with $65M 0-1MW category + $20M interconnection gain.
Full-year guidance evolved with AI demand: early 2025 $5.8-5.9B vs analysts $6.1B downbeat (customers tighten spending) Q4 2024 revenue $1.44B vs $1.46B estimate, then upgraded Q2 to $5.93-6.03B vs earlier $5.83-5.93B, then Q3 to $6.03-6.08B and net income $3.57-3.62/share, culminating record $6.112B total annual revenue 2025 with $3.34B Adjusted EBITDA per Business Remarks.
Business Model
| Segment | Details |
|---|---|
| Data Center Colocation | Leased managed data centers, hyperscale + enterprise, 309 facilities. |
| Interconnection | $20M gain from interconnection in bookings, PlatformDIGITAL. |
| Hyperscale | 3.0 GW IT load capacity, xScale-like large AI facilities, Lagos third data center launch Nigeria digital future. |
Financials
FY2025 $6.112B revenue record, Adjusted EBITDA $3.34B (~54.6% margin). Net income per share $3.57-3.62 guidance. Core FFO $1.77 Q1 2025. Same capital cash NOI +4.4% Q2. Unlike Equinix 50% EBITDA margin similar. Digital Realty leases to managed sectors diverse.
THE CODEW TAKE
Digital Realty is hyperscale landlord for AI. While Equinix owns interconnection hub, Digital Realty owns gigawatts — 3.0 GW IT load across 309 data centers. Guidance raised three times 2025 ($5.8B→$6.112B) shows AI demand surprise to upside. $201M bookings with $65M small 0-1MW indicates edge + enterprise AI inference spreading beyond hyperscale. $6.112B revenue vs Equinix $9.33B — smaller but faster growth +10.2% Q3. Watch interconnection $20M — if Digital Realty replicates Equinix Fabric success, margin expansion follows.
- Business Remarks — Digital Realty record $6.112B 2025 revenue $3.34B Adjusted EBITDA
- TradingView — $5.8-5.9B early guidance vs $6.1B estimate downbeat, Q4 $1.44B vs $1.46B
- MarketBeat — Q2 2025 revenue $1.49B vs $1.45B, adjusted EBITDA +13% YoY
- Alphastreet — 309 data centers including 89 unconsolidated 3.0 GW IT load March 2026