Digital Realty Trust Inc. (NYSE: DLR) stands out in 2025 as one of the worst-performing data center stocks thus far, showing a year-to-date decrease of more than 3%. Nevertheless, the company continues to demonstrate a robust capacity to deliver a comprehensive suite of data center, colocation, and interconnection services, which underpins its long-term growth perspective.
Views among analysts regarding DLR are notably diverse. On September 16, TD Cowen analyst John Blackledge reiterated a Hold rating and set a price target of $163 for the stock. In contrast, Irvin Liu from Evercore ISI maintained a Buy rating with a more optimistic price target of $200, suggesting a potential upside of nearly 17%.
During an appearance at RBC’s Global Communication Infrastructure Conference on September 17, CFO Matt Mercier outlined the company’s ambitious growth strategy alongside RBC’s John Acker. The discussion emphasized the increasing demand driven by AI-related workloads, while also addressing persistent challenges related to power availability in crucial markets.
Management projected an increase in funds from operations (FFO) per share by 6.5% for 2025, revising its previous estimate upward from 5%. Furthermore, the company boasts an $850 million backlog, anticipated to contribute significantly over the upcoming three years. With 3 gigawatts already operational and another 750 megawatts under construction—of which about 60% is already leased—the demand remains robust.
Digital Realty Trust Inc. (NYSE: DLR) operates as a leading global REIT that focuses specifically on data center ownership and colocation services, catering to the needs of cloud platforms, enterprise IT, and interconnection services.
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Disclosure: None. This article was originally published by Insider Monkey.
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