Digital Realty Trust (DLR)

Hyperscale + colocation data-center REIT (Digital Realty) — scaled capacity landlord

AI exposure 30% — derived from reported segment revenue, not asserted.

Where it sits

Physical Infrastructure → Data Center Real Estate & Colocation · figures rebased to Q2 2026, reported 2026-07-23

Hyperscale data-center leasing (large turn-key for cloud/AI — >1MW deployments) leads 2 businesses in this sub-tier that together are 100% of revenue, so Data Center Real Estate & Colocation is effectively the whole company rather than one leg of it.

Reported segments

Data-center leasing & services (by type) — 100% of revenue

Digital Realty ($1.92B Q2 2026, core FFO $2.13/sh +14% YoY) — global data-center REIT (hyperscale + colocation). Hyperscale leasing ~60% (turn-key >1MW for cloud/AI — record AI-driven bookings, the AI growth engine) + Colocation/Interconnection ~40% (PlatformDIGITAL). Primary B2 Data Center Real Estate & Colocation. Bigger hyperscale footprint than Equinix. Customers = hyperscalers (MSFT/AMZN/GOOGL/META/ORCL); suppliers = VRT/power/server makers.

How the 30% is built

Data-center leasing & services (by type) — 100% of revenue × 30% AI-driven (estimate). Unchanged estimate — Q2 2026 gave a record $1.9B backlog, $307M of bookings (including a record $108M of 0-1MW + interconnection, i.e. the NON-hyperscale half) and a 1.4 GW / $20B pipeline 63% pre-leased, but no AI-versus-cloud attribution; enterprise colocation and cloud-on-ramp leasing remain a large independent…

Investment read

Moat. Scale, global footprint, hyperscaler relationships and — the load-bearing asset — a banked land-and-power position (~5 GW) in markets where new supply is gated by interconnect queues rather than capital. Still less interconnection-moated than Equinix, and hyperscalers can self-build.

Bottleneck / pricing power. Pricing power is realized, not improving: Q2 2026 cash renewal spreads 25.4% (GAAP 32.0%), with the full-year spread guide nearly doubled to 9.0-11.0% from 6.0-8.0%. A decade of below-market leases is marking to a power-constrained market.

Role in the AI stack. The hyperscale-capacity landlord layer.

Connected companies

Vertiv Holdings (VRT) — DLR is supplied by: cooling + power systems
Trane Technologies (TT) — DLR is supplied by: thermal management
EMCOR Group (EME) — DLR is supplied by: mechanical/electrical build
Microsoft (MSFT) — DLR supplies: hyperscale data-center capacity leased to Azure
Meta Platforms (META) — DLR supplies: wholesale data-center space for Meta
Amazon (AMZN) — DLR supplies: data-center space hosting AWS Direct Connect on-ramps (100G nodes in DLR facilities)
nVent Electric (NVT) — DLR is supplied by: electrical enclosures + thermal connections for DC REITs
Powell Industries (POWL) — DLR is supplied by: switchgear + power control for data-center builds
Johnson Controls (JCI) — DLR is supplied by: chillers + CDUs for hyperscale data-center REIT
Equinix (EQIX) — DLR competes with: Two largest DC REITs — EQIX interconnection-led, DLR hyperscale-led
Iron Mountain (IRM) — DLR competes with: Digital Realty (scaled hyperscale/colo REIT) vs Iron Mountain (small, fast-growing DC entrant, mostly records-storage)
Siemens (SIEGY) — DLR is supplied by: data-center electrical infrastructure
Schneider Electric (SU) — DLR is supplied by: UPS, switchgear and prefab electrical/cooling infrastructure for data centers ($373M supply capacity agreement)
Eaton Corporation (ETN) — DLR is supplied by: power distribution for Digital Realty

Others in Data Center Real Estate & Colocation

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