Digital Realty Trust (DLR) Global Communications Infrastructure Conference summary

Capacity and development pipeline

• Operating portfolio includes 3 GW of capacity, with 750 MW under construction (60% leased), and 600 MW of shell in early development for future growth, mainly delivering from late 2026 through 2028.

• 3.5 GW of land capacity is available globally, with significant holdings in North America, EMEA, and APAC, including recent expansions in Charlotte and Atlanta.

• Robust demand is driven by AI-related workloads, with a strong leasing pipeline and a backlog exceeding $850 million, supported by over $1 billion in gross bookings in 2024.

• By delivery, occupancy rates typically reach 90% or higher, and confidence remains high for leasing the remaining pipeline.

• Supply chain for long-lead electrical equipment remains tight, but established vendor relationships and pre-ordering strategies support timely project delivery.

Power constraints and market dynamics

• Power remains a key constraint, especially in major markets like Northern Virginia and Chicago, though some relief is expected from late 2026 onward.

• Expansion into markets like Charlotte and Atlanta helps offset constraints in traditional hubs, leveraging local economic strengths and enterprise presence.

• In APAC, Singapore faces both power and land constraints, while Japan and Seoul continue to see steady development with manageable power issues.

• EMEA mirrors North American dynamics, with power constraints in major cities but ample capacity in France due to its nuclear power resources.

Financial outlook and growth strategy

• Bottom-line growth guidance for 2025 has accelerated from 5% to nearly 6.5%, driven by a strong development pipeline and robust leasing activity.

• Backlog conversion is scheduled through 2027, with $200M commencing in late 2025, $450M in 2026, and $100M in 2027, supporting multi-year growth.

• Releasing spreads are targeted at 4%-6% overall, with higher spreads in the >1 MW segment, and shorter-term contracts in retail colocation weighted toward 3%-4%.

• The company maintains a balanced portfolio, avoiding overexposure to hyperscale, and has achieved record signings in the 0-1 MW category, now approaching a $70M quarterly run rate.