• Digital Realty recently entered the Milan market by acquiring two parcels of land in Abbiategrasso to build a new data center campus supporting cloud, AI services, and interconnection needs.
• This move extends its presence beyond Rome and makes it the only global data center platform with a footprint in Italy’s two main connectivity hubs, potentially reinforcing its Mediterranean infrastructure role.
• We’ll now explore how this Milan campus plan, adding a second Italian connectivity hub, may influence Digital Realty’s broader investment narrative.

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Digital Realty Trust Investment Narrative Recap

To own Digital Realty, you need to believe in long term demand for global data center capacity and interconnection, especially from cloud and AI customers, while accepting capital intensive growth, interest rate sensitivity, and competitive pressures. The Milan land purchase supports the growth narrative but does not clearly change the most important near term drivers, which remain lease backlog conversion and disciplined funding for the sizeable development pipeline.

The most relevant recent update alongside Milan is Digital Realty’s 2026 guidance, with revenue expected between US$6,600.0 million and US$6,700.0 million and diluted EPS between US$2.55 and US$2.65. Together with new Southern European expansions, including Lisbon, this guidance frames how quickly current and planned campuses might translate into earnings while leaving investors to weigh the impact of higher financing needs and potential rate volatility on future returns.

But even with expanding hubs and solid leasing, investors should still watch for the risk that...

Digital Realty Trust's narrative projects $7.9 billion revenue and $1.0 billion earnings by 2028.

Uncover how Digital Realty Trust's forecasts yield a $198.38 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community cluster between about US$198.38 and US$237.09 per share, highlighting how differently private investors can view Digital Realty’s potential. Set against the focus on lease backlog conversion and funding needs, this spread underlines why you may want to compare several independent views before deciding how Milan, Lisbon and other projects could affect the company’s longer term performance.

Explore 2 other fair value estimates on Digital Realty Trust - why the stock might be worth as much as 36% more than the current price!

Form Your Own Verdict

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Digital Realty Trust research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Digital Realty Trust research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Digital Realty Trust's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.