Digital Realty reported quarterly earnings of $1.9 billion, up 21 percent from a year earlier, along with record leasing of $855 million. Hyperscale bookings hit a record $689 million, and signings in the 0-1MW category exceeded the prior record by 40 percent. Total backlog reached a record $2.5 billion, including 2028 revenue. The company spent $1.5 billion on development capex in the quarter and raised full-year guidance, but shares fell slightly.
The development pipeline stands at 1.5GW under construction at a total expected cost of $22 billion, and it is 63 percent pre-leased. Shares fell amid broader uncertainty in the AI data center market and concerns about neocloud debt. CEO Andy Power said the company has less than two percent exposure to the names people are worried about.
Earnings from the largest data center REIT, with a specific revenue and backlog figure. It is a useful read on colocation demand.