Digital Realty Raises Guidance Amid Record Leasing
The data center operator reports record quarterly lease signings as AI infrastructure demand drives growth.
Updated on Oct. 31, 2026 in Data Centers
Live Poll
Is the rapid expansion of physical data center capacity a sustainable long-term priority for our economy?
Digital Realty signed a record $855 million in new annualized GAAP base rent during the third quarter of 2026. Following these results, the company raised its full-year guidance for core funds from operations to between $8.30 and $8.35 per share.
Why it matters
Rising demand for data center capacity from companies building artificial intelligence infrastructure is fueling significant expansion. This trend allows operators to secure long-term revenue commitments while maintaining strong occupancy rates.
Digital Realty maintains 1.5 GW of capacity under construction with an expected stabilized yield of 11.6%. The company reported a 0.7% churn rate alongside cash re-leasing spreads of 11.8%.
The players
Digital Realty
Digital Realty is a global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions.
The details
The firm, which operates a cloud- and carrier-neutral data center platform, reported core FFO of $2.10 per share. Same-capital cash net operating income grew 6% year over year, while stabilized occupancy reached 93.4%.
Timeline
Q3 2026: Digital Realty signed record leases.
October 29, 2026: Digital Realty reported third-quarter results.
2027: Revenue visibility from existing backlog.
2028: Revenue visibility from existing backlog.
The Tech Race
Digital Realty's expansion capitalizes on the global shift toward centralized AI infrastructure, replacing legacy on-premise setups with scalable cloud-neutral platforms. This positions the company as a key utility provider in the ongoing race for massive compute power.
As data centers scale to support AI, users may see improved reliability and speed for cloud-based services and applications. However, the reliance on these large-scale facilities continues to concentrate digital infrastructure under the management of major platform providers.
The takeaway
The sustained growth in data center demand reflects the long-term capital investment required to support modern digital operations. Investors and industry participants should monitor how the $22 billion construction pipeline influences future supply in the market.
Further reading
For additional context on the sector, visit our Data Centers section.
Live Poll
Is the rapid expansion of physical data center capacity a sustainable long-term priority for our economy?
