Digital Realty raises guidance as AI demand lifts bookings

Transcript intelligence

What changed

Relative to the prior quarter, guidance moved higher to $8.15-$8.20 per share from $8.10, core FFO growth was reported at 14% year over year, backlog reached $1.9 billion, and planned capex increased to $4.25-$4.75 billion. The company also disclosed strategic transactions involving Blackstone, Teraco and Columbia Capital and highlighted record 0-to-1 megawatt interconnection bookings.

Guidance delta

Management raised 2026 core FFO guidance to $8.15-$8.20 per share, from the prior quarter's $8.10 per-share guidance.

Key takeaways

• Core FFO per share rose 14% year over year to $2.13, according to the supplied transcript analysis.
• Bookings reached records, including $108 million in 0-to-1 megawatt interconnection bookings.
• Backlog reached a record $1.9 billion, while the development pipeline expanded to 1.4 gigawatts under construction with about 63% pre-leased.
• Strategic transactions expanded ownership and private-capital capacity, while planned capex increased to $4.25-$4.75 billion.

Management priorities

• Scale AI and inference infrastructure and interconnection services.
• Ramp 600 megawatts of utility power in Kansas City, with a 2-gigawatt runway by early 2028.
• Complete the Teraco and Columbia Capital transactions in the second half of 2026.
• Deploy $10-$12 billion of private capital over the next one to two years and expand fee-income streams.