Digital Realty Trust stock (US2538681030): Analyst upgrade and strong 2026 run fuel data center story

Digital Realty Trust shares have rallied strongly in 2026, supported by solid growth in data center demand and a recent price target increase from Truist. What is behind the move – and what should investors know about the REIT’s business model and revenue drivers?

Digital Realty Trust stock has been among the stronger performers in the data center universe in 2026, with the shares up more than 20% year to date and trading around 192.14 USD as of the close on May 22, 2026 on the New York Stock Exchange, according to MarketBeat as of 05/22/2026.

On May 14, 2026, Truist raised its price target on Digital Realty Trust stock to 208 USD from 207 USD while reiterating a Buy rating, underscoring continued institutional interest in the data center real estate investment trust, according to InsiderMonkey as of 05/20/2026.

In addition, the stock has seen ongoing attention from professional investors: Global Retirement Partners LLC disclosed a position of about 1.41 million USD in Digital Realty Trust shares in a recent filing, highlighting that institutional investors remain active in the name, according to MarketBeat as of 05/25/2026.

As of: 25.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: Digital Realty
• Sector/industry: Data center real estate investment trust (REIT)
• Headquarters/country: San Francisco, United States
• Core markets: North America, Europe, Asia-Pacific data center locations
• Key revenue drivers: Colocation, interconnection and wholesale data center leasing
• Home exchange/listing venue: NYSE (ticker: DLR)
• Trading currency: US dollar (USD)

Digital Realty Trust: core business model

Digital Realty is organized as a publicly traded real estate investment trust focused on owning, acquiring and operating carrier-neutral data centers that provide colocation and interconnection services to enterprise and cloud customers, according to MarketBeat as of 05/22/2026.

In practice, the company develops and manages large-scale data center campuses where customers can rent space, power and cooling to host their IT infrastructure, with service offerings ranging from individual cabinets and cages to entire suites and build-to-suit facilities, according to Digital Realty website as of 05/25/2026.

The carrier-neutral positioning means customers can connect to multiple network providers and cloud platforms within the same facility, which makes Digital Realty sites attractive as hubs for interconnection and hybrid cloud architectures, according to Digital Realty website as of 05/25/2026.

As a REIT, Digital Realty distributes a significant share of its taxable income as dividends, and its performance is influenced by both real estate fundamentals such as occupancy and rental rates and technology-driven demand for data center capacity, according to MarketBeat as of 05/22/2026.

Main revenue and product drivers for Digital Realty Trust

The company’s primary revenue comes from long-term leases and service contracts for data center space, power and connectivity, with customers typically signing multi-year agreements that provide relatively visible cash flows, according to Digital Realty website as of 05/25/2026.

Digital Realty serves a diversified customer base including cloud service providers, telecommunications companies, financial institutions and enterprises that need secure and reliable locations for their critical IT systems, according to MarketBeat as of 05/22/2026.

Interconnection services, which allow customers to directly connect with partners, carriers and cloud platforms inside the same facilities, represent a growing area of the business and can support higher revenue per square foot compared with standard wholesale space, according to Digital Realty website as of 05/25/2026.

In recent financial reporting, Digital Realty highlighted that revenue grew 16.2% year over year in the latest quarter, while reporting a return on equity of 6.05% and a net margin of 21.73%, illustrating both top-line expansion and sustained profitability at the REIT level, according to MarketBeat as of 05/25/2026.

Looking ahead, earnings for Digital Realty are expected to grow by about 7.94% over the coming year, from 8.06 USD to 8.70 USD per share based on consensus estimates, suggesting that analysts anticipate continued demand for the company’s data center capacity, according to MarketBeat as of 05/22/2026.

Conclusion

Digital Realty Trust sits at the intersection of real estate and digital infrastructure, benefiting from structural demand for data center capacity while also facing capital-intensive investment needs and interest-rate sensitivity. The strong share price performance in 2026, supported by revenue growth, positive earnings expectations and analyst interest, reflects optimism about the company’s positioning in the data center market. At the same time, investors continue to monitor execution on development projects, balance sheet discipline and competitive dynamics versus other global data center operators, especially as new technologies and power constraints shape future expansion plans.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.