Digital Realty reported solid first-quarter 2025 results, highlighting continued strength in global data center demand, especially in the hyperscale and interconnection segments. The company generated $1.4 billion in revenue, up 6% year-over-year, and delivered $1.77 in Core FFO per share, an increase from $1.67 a year earlier. Leasing momentum remained robust, with total bookings expected to contribute $242 million in annualized GAAP rental revenue and pushing the company’s backlog to a record $919 million.
The hyperscale market continues to drive growth, supported by Digital Realty’s new U.S. Hyperscale Data Center Fund, which raised over $1.7 billion from institutional investors. This fund will focus on strategic U.S. metro markets, including Northern Virginia and Silicon Valley. Meanwhile, the company also expanded its international footprint by entering the Indonesian market through a joint venture in Jakarta, and acquired new land in Charlotte and Atlanta, collectively supporting more than 600 megawatts of future IT capacity.
Digital Realty signed 752,000 square feet of new leases across all global regions, including 77 megawatts of capacity. Rental rates on renewals increased 5.6% on a cash basis. Adjusted EBITDA rose 11% year-over-year to $791 million. The company raised its full-year Core FFO guidance to a range of $7.05 to $7.15 per share and reaffirmed its outlook for same-capital cash NOI growth between 3.5% and 4.5%. CEO Andy Power emphasized the company’s strong leasing pipeline and evolving capital strategy as key enablers of continued growth.
- Revenue: $1.4B (+6% YoY)
- Net income available to shareholders: $100M or $0.27/share
- Core FFO/share: $1.77 (vs. $1.67 in Q1 2024)
- Constant-Currency Core FFO/share: $1.79
- Adjusted EBITDA: $791M (+11% YoY)
- Leasing activity:
- Total new bookings: $242M annualized GAAP rent
- Record backlog: $919M
- Renewals: $147M; cash rent increase: +5.6%
- Global leasing volume: 752,000 sq. ft., 77.3 MW capacity
- Interconnection bookings: $15M contribution
- Expansion highlights:
- Charlotte, NC campus: +400 MW development potential
- Atlanta metro: 100-acre land for 200+ MW future capacity
- Indonesia JV (Digital Realty Bersama): CGK11 supports 32 MW
- U.S. Hyperscale Data Center Fund:
- Raised $1.7B in LP equity; targeting $2.5B
- Includes 5 operational DCs and 4 development sites
- 2025 Core FFO Guidance: Raised to $7.05–$7.15/share
- Same-capital NOI growth: 3.5%–4.5%
“Robust demand across our key product segments drove strong leasing and acceleration in Core FFO per share growth,” said CEO Andy Power. “Our record backlog enhances visibility, while our Hyperscale Data Center Fund evolves our funding model and unlocks further growth potential.”
