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Valued at $73.1 billion by market cap, Digital Realty Trust, Inc. (DLR) is one of the world's largest data center real estate investment trusts (REITs), providing the critical infrastructure that powers cloud computing, artificial intelligence, enterprise IT, and digital connectivity. Headquartered in Austin, Texas, the company owns, develops, and operates a global portfolio of carrier-neutral data centers that enable businesses to securely store, process, and exchange data.
Despite sitting at the heart of the AI-driven data center boom, Digital Realty hasn't fully capitalized on the market's enthusiasm over the past year. DLR has gained 13.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 21.5%. That said, the stock has staged an impressive comeback in 2026, climbing 24.5% year to date, nearly doubling the benchmark's 12.6% gain.
The comparison looks even tougher against its digital infrastructure peers. Digital Realty has significantly lagged the iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT), which has gained about 37.5% over the past year and 35.1% gains on a YTD basis.
On July 23, Digital Realty delivered a robust second quarter, sending its shares soaring 11% in the following trading session as investors cheered its AI-fueled growth story. Riding a wave of surging demand for AI and cloud infrastructure, revenue jumped 29% year over year to $1.9 billion, while Core FFO climbed to $2.65 per share from $1.87 a year ago.
Operationally, the company posted record leasing momentum. It signed leases expected to generate $307 million in annualized GAAP base rent, including its first-ever quarter with more than $100 million in 0-1 MW and interconnection bookings. Its leasing backlog swelled to a record $1.9 billion, while renewal cash rental rates surged 25.4%, highlighting exceptional pricing power. Adding to the momentum, the company secured two hyperscale leases worth $410 million in annualized GAAP base rent in July, reinforcing its position as one of the biggest beneficiaries of the AI infrastructure boom.
For the current fiscal year, ending in December, analysts expect DLR’s FFO per share to grow 13% to $8.35 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 34 analysts covering DLR stock, the consensus is a “Strong Buy.” That’s based on 25 “Strong Buy” ratings, two “Moderate Buys,” and seven “Holds.”
The consensus is bullish than a month ago when the stock had an overall “Moderate Buy” rating.
On Jul. 28, Citi reaffirmed its "Buy" rating and raised its price target to $200 from $174, citing sustained leasing activity and robust earnings growth momentum.
The mean price target of $218.56 represents a 13.5% premium to DLR’s current price levels. The Street-high price target of $250 suggests an upside potential of 29.8%.
