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Digital Realty Trust Inc (NYSE:DLR), a leading global data center provider, presented its first quarter 2025 financial results on April 24, 2025, showcasing strong performance metrics and strategic initiatives that position the company for continued growth.
Quarterly Performance Highlights
Digital Realty reported total bookings of $242.3 million for Q1 2025, with record pricing of $244 per kilowatt. The company achieved 6% year-over-year growth in core FFO per share, which increased from $1.67 in Q1 2024 to $1.77 in Q1 2025.
The quarter was marked by a record backlog of $919 million, representing over 40% increase in 2026 backlog. The company added 119 new logos during the quarter, with 0-1MW and interconnection bookings representing 28% of total Q1 signings.
As shown in the following chart of historical total bookings, Digital Realty has maintained strong momentum in leasing activity across various segments:
The company’s backlog reached record levels, providing visibility into future revenue growth. The following graphic illustrates the backlog roll-forward and commencement timing:
Renewal spreads remained positive across all categories, with total renewal spreads of 5.6% on a cash basis and 7.1% on a GAAP basis. The company noted it remains on track to meet full-year guidance for renewal spreads.
Strategic Initiatives
Digital Realty continues to expand its global platform, with approximately 2,760 MW of in-place IT capacity, 3,500 MW of buildable capacity, and 814 MW currently under construction. The company delivered 49 MW and started construction on 219 MW of new capacity during the quarter.
A key strategic development was the launch of Digital Realty’s first U.S. Hyperscale Data Center Fund, targeting approximately $2.5 billion in limited partner equity commitments. The company has already received subscriptions for over $1.7 billion in commitments and will maintain at least a 20% sponsor investment in the fund.
The fund will focus on high-quality hyperscale data centers in top-tier U.S. markets, including Northern Virginia, Dallas, Atlanta, Charlotte, New York Metro, and Silicon Valley. This initiative provides an additional avenue of capital to support hyperscale development while enhancing returns.
Digital Realty also expanded its global footprint by entering the Indonesian market through a partnership with Bersama. The company contributed $95 million to the venture, which will have rich interconnectivity with over 25 network providers and multiple subsea cables.
Financial Position & Outlook
Digital Realty maintained a strong balance sheet with over $5 billion in liquidity at the end of Q1 and a leverage ratio of 5.1x. The company has significantly reduced its leverage from 7.1x two years ago, demonstrating disciplined financial management.
The debt maturity schedule shows a well-structured profile with a weighted average maturity of 4.5 years and a weighted average coupon of 2.6%. The debt is 96% unsecured and 93% fixed-rate, providing stability in the current interest rate environment.
Based on the strong Q1 performance, Digital Realty raised its 2025 financial guidance. Total (EPA:TTEF) revenue guidance increased from $5,800-$5,900 million to $5,825-$5,925 million, and core FFO per share guidance was raised from $7.00-$7.10 to $7.05-$7.15.
Sustainability Initiatives
Digital Realty continues to emphasize sustainability as a core component of its strategy. The company is a leading data center purchaser of renewable energy with 1.5 GW of contracted renewable capacity. It maintains 100% renewable energy for its European portfolio and North America productized colocation portfolio, with 152 sites matched with 100% renewable energy.
The company claims more green building certified IT capacity than any other data center provider, with 1.3 GW-IT of its global operating portfolio having sustainable building certification. Digital Realty is also leading the data center industry in green bonds, having issued $7.2 billion in aggregate principal amount.
These sustainability initiatives align with the company’s long-term strategy and respond to increasing customer demand for environmentally responsible data center solutions.
Forward-Looking Statements
Digital Realty’s presentation reflects confidence in its strategic direction, with a focus on strengthening customer value proposition, innovating and integrating for customers, and diversifying capital sources. The record backlog of $919 million provides strong visibility into future revenue growth, with a significant portion expected to commence in the coming quarters.
The company’s stock closed at $151.59 on April 24, 2025, and gained 1.46% in after-hours trading following the earnings release, indicating positive market reception of the results.
With its global platform, strategic capital initiatives, and focus on sustainability, Digital Realty appears well-positioned to capitalize on the growing demand for data center capacity driven by digital transformation, cloud adoption, and artificial intelligence applications.
Full presentation:
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