DLR Enhances Data Center Infrastructure: Could This Drive Further Expansion?

Digital Realty Accelerates Global Data Center Expansion

Digital Realty (DLR) is actively enhancing its data center infrastructure to leverage the surging demand driven by artificial intelligence, cloud computing, IoT, and Big Data. As more businesses move their IT operations offsite, data center real estate investment trusts (REITs) are experiencing robust growth and increased market activity.

Recent Moves by Digital Realty

In March 2026, Digital Realty made its entry into Portugal by acquiring a Lisbon-based data center, which is projected to handle up to 2.4 MW of IT load and should be operational by early 2027. This strategic location connects Europe with the Americas and Africa, enhancing the company’s global network.

Digital Realty also expanded its European presence by purchasing Telepoint, a major interconnection hub in Sofia, Bulgaria. This acquisition adds two facilities to its portfolio and strengthens its position in Southeast Europe.

Earlier, in January 2026, the company announced plans to enter Malaysia through the acquisition of CSF Advisers, which owns the TelcoHub 1 data center in Cyberjaya—a key hub in the Greater Kuala Lumpur region.

Beyond international expansion, Digital Realty is investing in additional capacity and partnerships. In the fourth quarter of 2025, it acquired two land parcels totaling approximately 20 acres in the Portland area for $23.6 million, expected to support 85 megawatts of IT capacity.

DLR Mivne formed a joint venture with MedOne Ltd., Israel’s leading data center operator. Together, they purchased about 2.5 acres to build an 18-megawatt campus for $29 million. Digital Realty also increased its stake in five operating data centers, raising its ownership in the Digital Realty DC Partners NA Fund to 80% by year-end.

These initiatives highlight Digital Realty’s commitment to scaling its platform and reinforcing its presence in critical connectivity markets worldwide, positioning the company to meet the growing need for digital infrastructure.

Other Data Center REITs Pursue Growth

Equinix (EQIX) continues to expand through acquisitions and new developments, increasing its data center capacity and global reach. In June 2025, Equinix completed the purchase of three data centers in Manila, Philippines, for $183 million. By the end of 2025, Equinix had 52 major projects underway in 35 markets across 24 countries, including nine xScale builds.

Iron Mountain (IRM) is growing its data center segment alongside its storage business. In February 2025, Iron Mountain entered a strategic partnership with Ooredoo Group, acquiring a minority stake in MENA Digital Hub, Ooredoo’s carrier-neutral data center company.

DLR Stock Performance and Valuation

Over the past three months, DLR shares have climbed 17.7%, outpacing the industry’s 5.2% growth.

Image Source: Zacks Investment Research

DLR is currently valued at a forward 12-month price-to-FFO ratio of 22.36, which is higher than both the industry average and its own one-year median of 20.52. The stock holds a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for DLR’s 2026 funds from operations per share has been slightly increased to $7.96 in the past month.

Image Source: Zacks Investment Research

Digital Realty currently holds a Zacks Rank #3 (Hold). For a full list of Zacks #1 Rank (Strong Buy) stocks, click here.

Note: All earnings figures referenced are funds from operations (FFO), a standard metric for evaluating REIT performance.

Quantum Computing: The Next Major Tech Breakthrough

Quantum computing is emerging as a transformative technology, potentially surpassing the impact of artificial intelligence. Although many expected quantum computing to be years away, it is already advancing rapidly. Leading tech companies—including Microsoft, Google, Amazon, Oracle, Meta, and Tesla—are racing to incorporate quantum capabilities into their infrastructure.

Kevin Cook, Senior Stock Strategist, has identified seven stocks poised to lead the quantum computing revolution in his report, Beyond AI: The Quantum Leap in Computing Power.

Kevin was among the first to recognize NVIDIA’s potential in 2016. Now, he is spotlighting quantum computing as the next major investment opportunity. Investors have a unique chance to position themselves ahead of this technological shift.

For the latest stock recommendations from Zacks Investment Research, download the 7 Best Stocks for the Next 30 Days.