Digital Realty reported solid third-quarter 2025 results, with strong leasing momentum and record interconnection bookings driving double-digit growth in revenue and Adjusted EBITDA. Total bookings reached $201 million at 100% share, with smaller enterprise blocks and interconnection accounting for over half of new activity. The company’s backlog climbed to $852 million in annualized GAAP rent, providing clear visibility into 2026 deployments as AI, enterprise cloud, and low-latency applications continue to drive network-dense demand.
Leasing strength was led by 0–1 megawatt blocks and interconnection services, totaling $85 million in combined bookings at Digital Realty’s share. Renewal pricing also showed resilience, rising 8.0% on a cash basis and 11.5% on a GAAP basis. Across its global platform, Digital Realty reported more than 231,000 cross-connects across 300+ data centers, underscoring its central role in connecting enterprises, clouds, and networks.
The company highlighted more than 5 gigawatts of buildable IT capacity worldwide, including 730 megawatts under construction and 50 megawatts of net new starts in the quarter. Management noted continued enterprise expansion on PlatformDIGITAL®, supported by strong interconnection pull-through and steady hyperscale growth. Digital Realty also raised its full-year Core FFO per share outlook to $7.32–$7.38 and Constant-Currency Core FFO per share outlook to $7.25–$7.30, reflecting continued margin expansion and strong occupancy trends.
During the quarter, Digital Realty divested several non-core data centers in the U.S. for $90 million and acquired new sites in Los Angeles and Chicago supporting more than 70 megawatts of future IT capacity. Net debt-to-Adjusted EBITDA stood at 4.9x, with a fixed charge coverage ratio of 4.6x, maintaining balance sheet flexibility for continued development in high-demand AI and cloud markets.
• Total bookings: $201 million at 100% share; $162 million at Digital Realty’s share
• Mix of bookings: $65 million from 0–1 MW blocks, $76 million from >1 MW, and $19.6 million from interconnection
• Backlog: $852 million of annualized GAAP rent, with most commencements expected through 2026
• Renewal pricing: +8.0% on cash basis, +11.5% on GAAP basis
• Network metrics: 231,000+ cross-connects across 300+ data centers in 50+ metros
• Development pipeline: >5 GW buildable IT capacity; 730 MW under construction; 51 MW delivered; 50 MW net new starts
• Financials: $1.6 billion revenue (+10% YoY); Adjusted EBITDA $868 million (+14% YoY); Core FFO $1.89/share
• 2025 Guidance: Core FFO/share $7.32–$7.38; Constant-Currency Core FFO/share $7.25–$7.30; Same-Capital cash NOI growth 4.25–4.75%
“Digital Realty delivered strong financial results this quarter, featuring record Core FFO per share and double-digit revenue and Adjusted EBITDA growth,” said Andy Power, President and CEO. “Robust enterprise demand continues to drive our 0–1 megawatt plus interconnection offering, and with five gigawatts of buildable IT capacity worldwide, we are well-positioned to meet our customers’ evolving needs.”
🌐 Analysis: Digital Realty’s Q3 mix shift toward 0–1 MW footprints and record interconnection bookings reinforces its strategy around network-dense, enterprise-driven expansion rather than purely hyperscale growth. The company’s balance between IX strength and multi-megawatt pipeline positions it to capture AI-era workloads requiring both proximity and scale—an approach also seen in peers like Equinix, NTT, and CyrusOne as global AI cluster deployments accelerate.
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