Digital Realty's AI-ready buildout faces power and capex execution tests

Transcript intelligence

What changed

Management highlighted record zero-to-one-megawatt interconnection activity and described an inaugural closed-end fund with more than $3.2 billion of LP equity. The company is shifting to power-based occupancy and IT-load metrics; the call analysis also identifies a planned expansion of AI-ready, higher-density infrastructure.

Guidance delta

Guidance sentiment was characterized as maintained. The supplied analysis lists 2026 expectations of 8% FFO growth, more than 10% revenue and EBITDA growth, and $3.25–$3.75 billion of capex.

Key takeaways

• The call analysis reports FY2025 core FFO per share up 10% year over year to $7.39 and bookings above $1 billion, with a $1.4 billion backlog.
• Interconnection, hyperscale expansion and AI-related workloads were identified as demand drivers.
• Management's growth plans pair new capacity with materially higher capex and an emphasis on power-based occupancy.

Management priorities

• Build AI-ready, higher-density infrastructure, including liquid cooling, in tier-one metros.
• Expand PlatformDIGITAL and Service Fabric, including across APAC markets.
• Support hyperscale development through private-capital funding and improve power-based occupancy.