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Digital Realty Trust has revised its annual revenue and core funds from operations (FFO) outlook upwards, supported by sustained demand for data center infrastructure driven by artificial intelligence adoption. The company saw investor interest rise, with its shares gaining more than 2.5% in extended trading following the update. Growth in cloud computing, AI workloads, and enterprise digital transformation has strengthened occupancy and leasing activity across its global portfolio. The company also reported stable quarterly performance in line with expectations, while its adjusted FFO surpassed estimates, reflecting operational strength and improving demand conditions across key international markets.
Digital Realty Trust has increased its full-year revenue and core funds from operations (FFO) guidance, reflecting stronger-than-expected demand for data center services, largely supported by the rapid expansion of artificial intelligence applications. Following the update, the company’s shares rose by more than 2.5% in extended trading, indicating positive investor sentiment. Advertisement
The broader data center industry continues to benefit from companies shifting their computing infrastructure toward AI-driven workloads. Colocation providers, which offer space and infrastructure for businesses to host their servers, are seeing higher utilisation levels as cloud adoption and digital services expand across sectors.
Digital Realty, headquartered in Texas, operates managed data centers that serve clients across cloud computing, information technology, social media, communications, and manufacturing industries. The company continues to position itself as a key infrastructure provider supporting global digital transformation.
The company now expects adjusted FFO for the fiscal year in the range of USD 8 to USD 8.10 per share, revised upward from the earlier estimate of USD 7.90 to USD 8 per share. It has also increased its total revenue forecast to between USD 6.65 billion and USD 6.75 billion, compared with the earlier range of USD 6.60 billion to USD 6.70 billion.
The CEO stated that the company is accelerating the development of AI-focused hyperscale capacity in the United States, expanding its connectivity-rich assets across major global markets, and strengthening its capital position to support long-term growth.
For the first quarter, Digital Realty reported revenue of USD 1.6 billion, broadly in line with expectations based on industry estimates. Its adjusted FFO came in at USD 2.04 per share, exceeding market expectations of USD 1.84 per share.
In recent developments, the company has expanded into Malaysia, Portugal, and Bulgaria, while also strengthening its footprint in established markets such as Singapore, Japan, and London.
Source Reuters
5th Jun, 2025
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