Digital Realty Bets on AI Growth With Major Expansion Moves

Digital Realty DLR is taking another major step to expand its global data center platform through a series of transactions aimed at supporting long-term growth. The data center REIT recently announced the acquisition of roughly 1,440 acres at Astra Enterprise Park near Kansas City for about $475 million and secured an energy agreement that will provide 600 megawatts of utility power by early 2028, eventually increasing to 2 gigawatts as development progresses. These investments are designed to meet rising demand for hyperscale and AI-driven infrastructure. The latest transactions could strengthen Digital Realty’s competitive position and create additional growth opportunities. The company is increasing its ownership in Teraco, Africa’s leading data center platform, to 77% through a 16% stake purchase for approximately $650 million, principally by issuing 3.4 million shares of common stock. Digital Realty also plans to acquire Columbia Capital for about $485 million, mainly through the issuance of 2.3 million shares. The move expands its Strategic Private Capital platform, giving the company deeper access to investment expertise and additional funding channels to support future data center development and AI infrastructure projects.Digital Realty has also been growing its international footprint. In May, the company opened its first data center in Barcelona, known as BCN1, located in one of Southern Europe’s emerging technology hubs. The facility strengthens Digital Realty’s presence across the Mediterranean region and improves connectivity options for customers operating across Europe, Africa and the Middle East. The expansion reflects the company’s broader strategy of building capacity in high-demand digital markets.Recent financial results highlight continued momentum. In its first-quarter 2026 report, Digital Realty delivered strong leasing activity and benefited from sustained demand for cloud, connectivity and AI-related infrastructure. The company has pointed to growing customer requirements for data-intensive workloads, a trend that continues to support investment in new capacity and strategic partnerships.For investors, these announcements show a company focused on scaling its platform while broadening its geographic reach. With growing exposure to AI infrastructure, new development opportunities in Kansas City and expanding operations across international markets, Digital Realty appears well-positioned to benefit from the long-term growth of global data center demand.Over the past three months, shares of this Zacks Rank #3 (Hold) company have gained 11.9%, outperforming the industry's growth of 10.2%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the broader REIT sector are Equinix, Inc. EQIX and Prologis, Inc. PLD, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Equinix’s 2026 FFO per share is pinned at $42.93. This indicates year-over-year growth of 12%.The Zacks Consensus Estimate for Prologis’ 2026 FFO per share is pegged at $6.18. This calls for a year-over-year increase of 6.37%.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks