Digital Realty, one of the world’s largest data center providers, closed the first half of 2025 with robust financial performance, a record leasing backlog, and a new $3B hyperscale fund aimed at fueling expansion across the U.S. and Asia. The company also marked its entry into Indonesia, signaling a deeper push into Southeast Asia.
Financial Highlights
- Q1 2025: Revenue reached $1.4B; Adjusted EBITDA was $791M (+11% YoY); Core FFO/share at $1.77; Leasing backlog hit a record $919M.
- Q2 2025: Revenue grew to $1.49B; Net income reached $1.05B ($2.94/share); Adjusted EBITDA rose to $823M (+13% YoY); Core FFO/share at $1.87; Leasing backlog stood at $826M.
- Full-Year Outlook: Raised Core FFO guidance to $7.15–$7.25/share, reflecting strong demand momentum.
Growth and Expansion
Hyperscale Investment Fund
- Digital Realty’s U.S. Hyperscale Data Center Fund secured over $3B in commitments.
- Nearly doubled from $1.7B in Q1.
- Supports large-scale campus builds and strengthens U.S. presence.
Leasing Activity
- Q1: $242M in new bookings; +5.6% renewal cash spreads.
- Q2: $135M in new bookings; +7.3% renewal cash spreads.
- Strong renewal activity underscores sticky enterprise demand.
Market Expansion
- Entered Indonesia through a joint venture.
- Acquired land parcels in Charlotte, Atlanta, Dallas, and Chicago.
- New capacity supports 1,000MW+ of future IT load.
Asia Cloud View – The Intel
Digital Realty’s H1 results highlight a dual strategy:
- ⚡ Capital Efficiency: Scaling via a $3B investment fund reduces balance sheet pressure while sustaining hyperscale expansion.
- 🌏 Emerging Market Push: Entry into Indonesia positions Digital Realty for Southeast Asia’s accelerating enterprise cloud adoption.
- 🏗️ U.S. Land Banking: Large-scale campus-ready land in Tier-1 U.S. metros ensures long-term hyperscale capacity.
Against competitors like Equinix, Digital Realty is sending a clear message: it intends to remain a global backbone for both hyperscale and enterprise cloud growth, balancing mature-market dominance with emerging-market opportunities.