Digital Realty secures $1.4B in new data center leases
Digital Realty, a major data center landlord, reported strong demand in the second quarter. The company signed leases worth $1.4 billion annually in base rent, a record for its portfolio. It also saw a 25.4% cash increase on renewal leases, reflecting AI-driven growth in server housing needs.
Key points
- Digital Realty signed leases totaling $1.4B in annualized base rent, a record for Q2
- Renewal leases rose 25.4% in cash value, showing strong AI-driven demand
- U.S. data centers may consume 6.7–12% of electricity by 2028, per DOE report
Digital Realty operates as a real estate investment trust (REIT), providing stable income and capital appreciation. Its success stems from AI companies’ reliance on reliable power and network connectivity. The company’s customers rarely switch providers due to the high cost and disruption of relocating servers. Meanwhile, a U.S. Department of Energy report projects data center electricity use could rise from 4.4% in 2023 to 6.7–12% by 2028, driven by AI expansion.
Forget Microsoft: You don’t need Big Tech to invest in the AI data center boom
finance.yahoo.com · 2 October 2026
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