Digital Realty Sets New Records as Demand for Digital Infrastructure Continues to Soar
Digital Realty Trust made a stellar start to the year with an impressive set of first quarter 2026 earnings. The company's record-breaking performance was driven by strong demand for digital infrastructure, which continues to be a key driver of growth in the global economy.
According to Andy Power, President and CEO of Digital Realty, the company delivered its second-highest bookings quarter ever, underscoring the diversity and durability of demand across their platform. This was achieved despite challenges such as power availability, labor and supply chain risks, and community concerns that have become significant constraints on the industry.
One notable highlight from the quarter was the signing of the largest megawatt lease in company history, while also setting another record in 0-1 MW+ interconnection category. This achievement not only boosted Digital Realty's 2026 outlook but also increased their total backlog to a staggering $1.8 billion, providing strong visibility for growth into 2027 and 2028.
The company's development pipeline has also seen significant growth, increasing by over 50% sequentially to 1.2 GW under construction. This is largely driven by successful leasing and the continued efforts of Digital Realty to position capacity to support customers' growing requirements. Notably, their 0-1 MW signings have provided a strong foundation for future growth, with this category now accounting for $423 million at Digital Realty's share.
Digital Realty's Core FFO (Funds From Operations) came in at $2.04 per share for the first quarter, exceeding expectations and delivering double-digit year-over-year growth. In light of these strong results, the company has raised its 2026 Core FFO per share guidance range, implying 9% growth at the midpoint.
With demand for digital infrastructure remaining robust and execution across PlatformDIGITAL remaining crisp, Digital Realty continues to gain market share in their 0-1+ interconnection product category. As Power noted, customers are coming to the company seeking capacity close to users and clouds to interject within and across markets, and the ability to scale as requirements evolve.
The widening gap between theoretical demand and deployable capacity has created a unique opportunity for providers like Digital Realty to deliver fit-for-purpose capacity, future scalability, and deep connectivity across multiple metros and regions. This is particularly crucial in an environment where AI adoption is accelerating compute intensity, cloud demand remains resilient, and enterprises are embracing technology to improve productivity and efficiency.
As the global economy continues to digitize, it's clear that Digital Realty has positioned itself as a leader in the industry, delivering strong results despite the challenges mentioned above. With its commitment to innovation and customer satisfaction, the company is well-equipped to meet the evolving needs of customers and drive growth in the years ahead.
