Digital Realty raises annual FFO forecast on robust data center demand
Digital Realty Trust has raised its full-year forecast for funds from operations, citing robust leasing momentum driven by cloud and AI customers. The company also announced plans to acquire a larger stake in three data centers in Northern Virginia from Blackstone for $3.5 billion, strengthening its presence in a key market.
Digital Realty Trust, an Austin, Texas-based real estate investment trust specializing in data centers, colocation, and interconnection solutions, has significantly raised its full-year forecast for funds from operations (FFO).
On Thursday, the company announced an updated fiscal 2026 adjusted FFO projection of $8.15 to $8.20 per share, up from its earlier $8 to $8.10. Total annual revenue is now expected to be between $6.85 billion and $6.95 billion, an increase from the previous $6.65 billion to $6.75 billion. This optimistic outlook is attributed to resilient leasing momentum driven by the increasing demand from cloud and AI customers, who require extensive computing power housed in specialized data facilities.
In a strategic move to capitalize on the global AI boom and expand its footprint, Digital Realty is set to acquire a larger stake in three data centers located in Northern Virginia. This $3.5 billion cash-and-stock deal with asset manager Blackstone will further solidify Digital Realty's position in what is considered the world's largest data center market.