The Bull Case For Digital Realty Trust (DLR) Could Change Following Board, Audit Shift Toward AI Power Expertise
- Earlier this month, Digital Realty Trust announced that Stephen R. Bolze, a veteran infrastructure and industrial executive with leadership experience at Blackstone and General Electric, was elected as an independent director effective January 1, 2026, and will join the Audit Committee.
- His deep background in power and large-scale infrastructure could be especially important for a data center operator increasingly focused on energy-hungry AI workloads and capacity expansion.
- Next, we’ll examine how Goldman Sachs’ upbeat coverage, citing Digital Realty’s sizeable development pipeline, may reshape the company’s existing investment narrative.
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Digital Realty Trust Investment Narrative Recap
To own Digital Realty, you need to believe that long term demand for AI and cloud infrastructure will keep filling its large development and lease backlog faster than new capacity and financing risks build up. The appointment of Stephen R. Bolze looks directionally helpful for managing power intensive growth, but the more immediate swing factor remains how effectively Digital Realty converts its existing pipeline into profitable, on time data center completions in a choppy capital markets backdrop.
The most directly relevant update is Goldman Sachs’ recent initiation, which highlighted Digital Realty’s US$852 million backlog and US$6.4 billion development pipeline expected to start contributing meaningfully from 2026. That focus on contracted future revenue ties closely to the current investment case, but it also sharpens attention on execution risks if construction timelines slip, if financing costs rise further, or if customers slow decision making for large scale AI and cloud deployments.
Yet investors also need to weigh how rising short interest and the risk of supply overtaking demand in key U.S. data center markets could...
Read the full narrative on Digital Realty Trust (it's free!)
Digital Realty Trust's narrative projects $7.9 billion revenue and $1.0 billion earnings by 2028. This requires 11.5% yearly revenue growth and a $0.3 billion earnings decrease from $1.3 billion.
Uncover how Digital Realty Trust's forecasts yield a $199.22 fair value, a 33% upside to its current price.
Exploring Other Perspectives
Three Simply Wall St Community fair value estimates span roughly US$110 to US$234 per share, showing how far apart individual views can be. Against that wide range, concerns about capital markets volatility and funding such a large build out may lead you to explore several different scenarios for Digital Realty’s future performance.
Explore 3 other fair value estimates on Digital Realty Trust - why the stock might be worth 26% less than the current price!
Build Your Own Digital Realty Trust Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Digital Realty Trust research is our analysis highlighting 5 key rewards and 3 important warning signs that could impact your investment decision.
- Our free Digital Realty Trust research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Digital Realty Trust's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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