Digital Realty Lifts 2026 Outlook After Record Q1 Leasing and Bigger Build Pipeline

Overview

• Digital Realty posted core funds from operations of $2.04 per share, up 15% year over year, and raised full‑year guidance to $8.00–$8.10.
• The company reported its second‑highest bookings ever with more than $700 million of new leases, including a 200 MW AI lease in Charlotte and 116 new customer logos.
• The development pipeline expanded to about 1.2 gigawatts under construction, with 61% pre‑leased, and the backlog reached a record $1.8 billion.
• Interconnection demand set a high mark with $98 million in 0–1 MW deals, and 21% of those smaller bookings were tied to AI needs.
• Leverage fell to a multiyear low of 4.7x, giving roughly $10 billion of capacity to fund hyperscale builds, with $3.5–$4.0 billion of 2026 capital spending planned.