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Digital Realty Trust, Inc. is a leading global provider of data center, colocation, and interconnection solutions, serving a diverse range of industry verticals including cloud and information technology services, social networking, communications, financial services, manufacturing, energy, healthcare, and consumer products . Operating as a Real Estate Investment Trust (REIT) for U.S. federal income tax purposes, the company conducts its business through Digital Realty Trust, L.P., which owns, acquires, develops, and operates data centers . As of December 31, 2023, Digital Realty's portfolio consisted of 309 data centers across the United States, Europe, Latin America, Africa, Asia, Australia, and Canada .
- Data Centers - Owns, acquires, develops, and operates strategically located properties with infrastructure such as redundant electrical supply systems, multiple power feeds, and high-level security systems to support data center and technology industry customers.
- Colocation Solutions - Provides space, power, and cooling for customers' IT equipment, enabling them to scale their operations efficiently.
- Interconnection Solutions - Offers connectivity services that facilitate the exchange of data between different networks and cloud service providers, enhancing operational efficiency and performance.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Andrew P. Power ExecutiveBoard | President and CEO | Board Member at Americold Realty Trust (NYSE: COLD) | Andrew P. Power joined DLR in April 2015 as CFO, became President in November 2021, and CEO in December 2022. He has a background in finance and real estate, previously working at Bank of America Merrill Lynch and Citigroup. | View Report → |
Christine B. Kornegay Executive | Chief Accounting Officer | N/A | Christine B. Kornegay has been the CAO since January 1, 2024, overseeing global accounting and compliance. She previously worked at McAfee, Dynata, SomnoMed, and MetroPCS. | |
Christopher Sharp Executive | Chief Technology Officer | N/A | Christopher Sharp has been CTO since August 2015, leading global design and engineering. He previously worked at Equinix, Qwest Communications, and other telecom companies [N/A]. | |
Cindy Fiedelman Executive | Chief Human Resources Officer | N/A | Cindy Fiedelman joined DLR in September 2015 as Interim Global Head of HR and became CHRO in January 2016. She has extensive HR experience from American Airlines and Avaya. | |
Gregory S. Wright Executive | Chief Investment Officer | Board Member at Paramount Group, Inc. (NYSE) | Gregory S. Wright has been CIO since January 2019. He previously worked at Bank of America Merrill Lynch and Citigroup, focusing on real estate and infrastructure. | |
Jeannie Lee Executive | EVP, General Counsel, and Secretary | N/A | Jeannie Lee joined DLR in 2010 and has held various legal roles, becoming EVP, General Counsel in January 2022, and Secretary in March 2022. She leads legal, sustainability, and compliance functions. | |
Matthew R. Mercier Executive | Chief Financial Officer | N/A | Matthew R. Mercier is the CFO of DLR, serving as the principal financial officer for Digital Realty Trust, L.P.. | |
Afshin Mohebbi Board | Director | N/A | Afshin Mohebbi, a Director since 2016, is the Chair of the Audit Committee. He has held senior roles at Qwest Communications and British Telecom, focusing on telecom investments. | |
Jean F.H.P. Mandeville Board | Director | N/A | Jean F.H.P. Mandeville, a Director since 2020, has a background in international finance and technology, previously serving on the board of InterXion Holding N.V.. | |
Kevin J. Kennedy Board | Director | Board Member at KLA Corporation (NASDAQ) and UL Solutions, Inc. (NYSE) | Kevin J. Kennedy has been a Director since 2013, with extensive experience in communications and technology. He has held executive roles at Quanergy Systems, Avaya, and JDS Uniphase. | |
Susan Swanezy Board | Director | Board Member at AvalonBay Communities, Inc. (NYSE: AVB) | Susan Swanezy, appointed in April 2024, has a background in real estate investment management and capital formation, previously working at Hodes Weill & Associates and Credit Suisse. | |
VeraLinn Jamieson Board | Director | Board Member at Rolls-Royce North America, Inc. and Arqit Inc. (NASDAQ) | VeraLinn Jamieson, a Director since 2020, has over 37 years of government experience, including as a Lieutenant General in the U.S. Air Force, focusing on data management and technology. | |
William G. LaPerch Board | Director | Senior Advisor at South Reach Networks, Board Member at Windstream Holdings, ITG Communications, First Light, and Schultze Special Purpose Acquisition Corp. II (NASDAQ) | William G. LaPerch, a Director since 2013, has expertise in communications and cybersecurity, with roles at South Reach Networks and Windstream Holdings. |
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Given that about 50% of your total bookings this quarter were driven by AI-related demand, how confident are you in the sustainability of this growth, and what steps are you taking to prepare for potential fluctuations in AI-driven demand?
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With the increased power densities required for AI workloads leading to higher build costs, how are these higher costs impacting your development yields, and what measures are you implementing to maintain or improve these yields in the face of rising construction expenses?
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Considering the significant acceleration in your development pipeline, increasing capacity under construction by almost 50% to 644 megawatts, how are you managing the funding needs for these developments while maintaining your leverage targets, especially in the current interest rate environment?
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Despite the strong bookings and record $66 million in 0-1 megawatt interconnection business, how are you addressing potential pricing pressures and renewal fatigue among enterprise customers to ensure this momentum continues and maintain margins in this competitive segment?
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You've emphasized focusing on core markets with robust and diverse demand while avoiding markets with less long-term visibility; can you elaborate on how this strategy impacts your growth prospects, and how you balance the risks and opportunities when expanding into new markets?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The company competes with numerous data center providers globally, many of whom own or operate properties similar to theirs in some of the same metropolitan areas where their data centers are located, including this competitor. | |
The company competes with numerous data center providers globally, many of whom own or operate properties similar to theirs in some of the same metropolitan areas where their data centers are located, including this competitor. | |
Global Switch Holdings Limited | The company competes with numerous data center providers globally, many of whom own or operate properties similar to theirs in some of the same metropolitan areas where their data centers are located, including this competitor. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Fortune 50 Software Company | Provides data center space, power, and connectivity solutions | All | ARR: $475.08 million (approx. 11.5% of total). Weighted avg. remaining lease term: 8.9 years. |
Oracle Corporation | Supports cloud and IT services operations | All | ARR: $266.60 million (approx. 6.4% of total). Weighted avg. remaining lease term: 9.7 years. |
Social Content Platform | Data center services for content delivery | All | ARR: $229.77 million (approx. 5.5% of total). Weighted avg. remaining lease term: 3.7 years. |
Global Cloud Provider | Multi-regional cloud deployments | All | ARR: $189.15 million (approx. 4.6% of total). Weighted avg. remaining lease term: 4.8 years. |
IBM | Data center services for enterprise IT solutions | All | ARR: $119.15 million (approx. 2.9% of total). Weighted avg. remaining lease term: 2.8 years. |
Equinix | Connectivity and co-location solutions | All | ARR: $98.13 million (approx. 2.4% of total). Weighted avg. remaining lease term: 5.0 years. |
LinkedIn Corporation | Data center hosting | All | ARR: $84.51 million (approx. 2.0% of total). Weighted avg. remaining lease term: 3.2 years. |
Fortune 25 Investment Grade-Rated Company | Data center hosting for IT solutions | All | ARR: $64.37 million (approx. 1.6% of total). Weighted avg. remaining lease term: 1.9 years. |
Meta Platforms, Inc. | Data center services for social media and digital content | All | ARR: $64.16 million (approx. 1.5% of total). Weighted avg. remaining lease term: 3.6 years. |
Social Media Platform | Data center solutions | All | ARR: $63.17 million (approx. 1.5% of total). Weighted avg. remaining lease term: 6.4 years. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Slough Trading Estate | 2024 | Completed in July 2024 for $200 million, this acquisition provided Digital Realty with entry into the west London submarket by adding two data centers delivering 15 MW capacity, over 150 customers, and integration with its Metro Connect solution—all powered by renewable energy to support its sustainability goals. |
MRS6 Land | 2023 | Acquired on September 15, 2023 near Marseille for €47 million (~$49 million), the site is planned to develop data center capacity up to 50 MW to address rising demand from cloud service providers. |
MRS5 Land | 2023 | Completed on August 8, 2023 in Marseille for $65 million, this acquisition includes a 50-year right-of-use agreement for a 2.7-acre site that will extend Digital Realty’s highly connected campus with an additional 22 MW IT load, with minimum total payments of €62 million over 30 years. |
Schiphol Land | 2023 | Acquired on June 21, 2023 in Amsterdam for $27.8 million, this land purchase strategically expands Digital Realty’s Schiphol campus by supporting a data center with over 40 MW IT load and creating additional growth avenues for enterprise and service providers. |
Johannesburg Land | 2023 | Completed on May 12, 2023 for $4,532,000, this land acquisition in Johannesburg strengthens Digital Realty’s geographic portfolio for potential future data center development. |
AMS7 | 2023 | Acquired on April 30, 2023 in Amsterdam for $18 million (or €17 million), this deal involved purchasing land and a building shell as part of a contractual obligation linked to the Interxion transaction, with an 8.3% cap rate. |
Teraco | 2022 | Completed in August 2022 with Digital Realty acquiring a 55% majority stake for $1.7 billion in cash, this acquisition expanded its pan-African footprint by adding seven state-of-the-art data centers in South Africa, extensive interconnectivity (22,000 interconnections), and access to multiple subsea cables, underpinned by strategic financing and significant goodwill and intangible asset recognition. |
Recent press releases and 8-K filings for DLR.
- Digital Realty announced the formation of a 50-50 joint venture with Bersama Digital Infrastructure Asia to develop and operate data centers across Indonesia.
- The new entity, Digital Realty Bersama, will manage Jakarta-based facilities including CGK11, which launched with a 5 MW IT load and can expand up to 32 MW.
- Digital Realty contributed approximately $100 million at closing for its 50% stake in the joint venture, underlining its long-term commitment to Indonesia’s digital economy.