• Digital Realty Trust recently reported a strong start to 2026, lifting full-year revenue guidance to US$6.65–US$6.75 billion and net income per diluted share to US$2.65–US$2.75 after first-quarter results exceeded expectations.
• The company’s quarter was marked by its second-highest bookings ever, including a record 200 MW AI lease in Charlotte and a US$1.80 billion annualized rent backlog that expands its long-term visibility.
• We’ll now examine how the record 200 MW AI lease and raised 2026 guidance reshape Digital Realty’s broader investment narrative.

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Digital Realty Trust Investment Narrative Recap

To own Digital Realty Trust, you need to believe that demand for high‑power, AI‑focused data centers and interconnection will continue to support its large development pipeline and lease backlog. The raised 2026 revenue and earnings guidance reinforces the near term catalyst of converting record bookings into cash flow, while the biggest risk remains that heavy investment and capacity additions in key markets could eventually run ahead of demand, especially if customer decision cycles slow.

The record 200 MW AI lease in Charlotte and the US$1.80 billion annualized rent backlog are most relevant here, because they speak directly to the core catalyst of contracted, not‑yet‑commenced revenue. These commitments underpin management’s confidence in lifting 2026 guidance, but they also raise the stakes around execution, timing of lease commencements and how efficiently Digital Realty can fund and deliver its 1.2 GW construction pipeline.

Yet against this strong leasing backdrop, investors should also be aware of the risk that significant new capacity in markets like Northern Virginia could...

Digital Realty Trust’s narrative projects $8.2 billion revenue and $897.5 million earnings by 2029.

Uncover how Digital Realty Trust's forecasts yield a $201.03 fair value, in line with its current price.

Exploring Other Perspectives

Two Simply Wall St Community fair value estimates for Digital Realty cluster between US$201.03 and US$245.87, showing a wide span of individual views. You can weigh these against the company’s record US$1.80 billion backlog, which ties near term expectations more tightly to how quickly those contracts turn into revenue and earnings.

Explore 2 other fair value estimates on Digital Realty Trust - why the stock might be worth just $201.03!

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.