Digital Realty Trust, Inc. (DLR) Stock Analysis

Digital Realty Trust’s primary competitive advantage is its global scale and network density. As of mid-2025, DLR operates over 300 data centers across 50+ metropolitan areas on six continents, making it one of the largest data center REITs worldwide. This footprint enables DLR to serve both hyperscale (large cloud and tech firms) and enterprise customers, offering low-latency, high-bandwidth solutions critical for cloud, AI, and digital transformation workloads.

DLR’s PlatformDIGITAL and ServiceFabric interconnection offerings create “network effect” advantages. With over 228,000 cross-connects and 5,000+ customers, DLR’s campuses act as digital hubs, attracting additional tenants seeking proximity to cloud, network, and content partners. This ecosystem approach is difficult for smaller or regionally focused rivals to replicate.

Financially, DLR’s investment-grade balance sheet (net debt/EBITDA 5.1x, 94% fixed-rate debt) and access to private capital—such as its $3 billion U.S. Hyperscale Data Center Fund—support continued expansion and resilience through cycles. The company’s scale also provides procurement leverage and operational efficiencies, helping to offset rising construction and power costs.

Compared to Equinix, DLR is more weighted to wholesale and hyperscale customers, while Equinix leads in retail colocation and interconnection density. Private operators like CyrusOne and QTS lack DLR’s global reach and capital flexibility. DLR’s sustainability leadership (1.5 GW renewable capacity, 185 sites matched to 100% renewables) further differentiates it for ESG-focused customers.