Digital Realty Raises 2026 Forecast Following AI-Driven Growth

Digital Realty Trust increased its fiscal 2026 annual forecast for adjusted funds from operations (FFO) to a range of $8.15 to $8.20 per share, up from $8 to $8.10. The company also lifted its total annual revenue projection to between $6.85 billion and $6.95 billion and increased adjusted EBITDA guidance to $3.75-$3.85 billion.

These adjustments follow second-quarter results where total operating revenue reached $1.92 billion, a 29% increase that exceeded analyst estimates. While the company reported a decline in second-quarter net income to $443.11 million from $1.02 billion the previous year—primarily due to significant property disposition gains in the prior period—Core FFO rose to $955.76 million. The company attributed this operational strength to resilient leasing momentum and record customer demand for data center capacity driven by artificial intelligence, cloud computing, and enterprise digital transformation.

To support this growth, Digital Realty is acquiring a larger stake in three data centers in Northern Virginia from Blackstone in a $3.5 billion cash-and-stock transaction. Other strategic expansions include the acquisition of a land parcel in Charlotte, North Carolina, and the purchase of the remaining ownership interest in a Frankfurt joint venture.