Key Reasons to Add Digital Realty Stock to Your Portfolio Now

Digital Realty (DLR) reported $307 million in second-quarter bookings and a record $1.9 billion backlog, fueled by surging demand for AI and cloud infrastructure. The data-center REIT is capitalizing on the buildout cycle with 1.4 gigawatts of capacity under construction yielding 11.5%.

The company is expanding through strategic land acquisitions and data-center purchases to meet accelerating customer requirements. Digital Realty's diversified tenant base and balance sheet position it to fund the aggressive construction pipeline without straining leverage metrics. The bookings momentum and backlog visibility provide forward revenue line-of-sight extending well beyond current quarters.

Management's focus on high-yield development—targeting double-digit returns on the construction portfolio—aligns capital deployment with the AI-driven infrastructure wave. The 11.5% yield on projects under development suggests meaningful accretion as facilities come online and lease up.