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 globally. This scale enables DLR to serve multinational customers with consistent service levels and to offer low-latency, high-bandwidth connectivity—critical for cloud, AI, and enterprise workloads. Its PlatformDIGITAL ecosystem and ServiceFabric interconnection suite allow customers to connect seamlessly to major cloud providers and networks, a capability that smaller rivals often cannot match.

DLR’s customer base is highly diversified, with no single customer accounting for more than 12% of annualized recurring revenue. Top tenants include major technology and financial firms such as Oracle, IBM, and JPMorgan Chase. This reduces revenue concentration risk compared to some peers.

Relative to Equinix, its closest global rival, DLR’s strength lies in its broader mix of hyperscale, colocation, and enterprise solutions, as well as its land banking and development pipeline—over 3,500 MW of buildable capacity. DLR’s balance sheet is robust, with net debt to adjusted EBITDA at 5.1x and $5 billion in liquidity, supporting ongoing expansion.

Potential weaknesses include exposure to rising power costs and the capital intensity of new builds. However, DLR’s long-term power contracts, sustainability initiatives, and access to green financing partially mitigate these risks.