What It Does: Digital Realty is one of the world’s largest data center REITs, owning and operating over 300 data centers across 50+ metros on six continents. It provides colocation, interconnection, and build-to-suit capacity for hyperscalers (AWS, Google, Oracle) and enterprises. The company is a direct beneficiary of AI infrastructure buildouts: every GPU cluster, every large language model deployment, every cloud expansion requires physical data center capacity. Digital Realty’s PlatformDIGITAL offering provides modular, scalable data center space with integrated networking.
How the Stock Looks: DLR trades around $160 in mid-April 2026. The stock has rebounded from its 2023 lows as AI data center demand visibility surged. Revenue growth is accelerating, driven by record leasing volumes and rising power density requirements. Funds from operations (FFO) are growing at 8–10% annually. The dividend yield sits at roughly 3.3%, making it one of the few AI-adjacent income plays.
What Analysts Are Saying: 12 analysts rate DLR a Buy with an average price target of $202. Raymond James and Stifel are among the most bullish voices, pointing to the structural supply-demand imbalance in data center capacity. Bears cite rising construction costs, power availability constraints, and interest rate sensitivity. But the AI demand wave is a once-in-a-generation catalyst for data center REITs.