Company Overview - Digital Realty supports 5,000 customers across 50 metropolitan areas on 6 continents with data center and connectivity infrastructure [3] - The company is the largest global provider with over 300 data centers operating close to 3 gigawatts of capacity, with an additional nearly 4 gigawatts of growth or underdevelopment capacity [3] Investment Rationale - Digital Realty is positioned to benefit from three secular tailwinds of demand: digital transformation, cloud computing, and artificial intelligence [3] - The company has been a public entity for 20 years and has a long-standing presence in the data center industry, predating the current focus on GPUs and AI [3]

Summary of Digital Realty Trust (DLR) 2025 Conference Call Company Overview - Digital Realty Trust supports 5,000 customers across 50 metropolitan areas on six continents with data center and connectivity infrastructure [3][4] - The company is the largest global provider with over 300 data centers operating close to 3 gigawatts of capacity, with an additional 4 gigawatts under development [3][4] Core Demand Drivers - The company is benefiting from three secular tailwinds: digital transformation, cloud computing, and artificial intelligence (AI) [3][5] - A record $1 billion in bookings was achieved last year, with significant growth in both enterprise colocation and hyperscale categories [5][6] - The transition from on-premises data centers to purpose-built infrastructure is ongoing and expected to continue for many years [5][6] AI Infrastructure and Demand - The demand for AI workloads is still in its early stages, with limited enterprise usage of AI products currently observed [10][11] - AI is expected to be a long-term driver of demand, but the full impact is yet to materialize [11][12] - The company is focused on building infrastructure that supports both training and inference workloads for AI [18][19] Globalization and Sovereign AI Initiatives - Digital Realty is actively engaging with sovereign cloud initiatives in various countries, including France, to support AI infrastructure growth [21][22] - There is a global trend towards data sovereignty, with countries aiming to develop their own AI capabilities to avoid reliance on US infrastructure [22][23] Cloud Adoption and Market Position - The company believes that cloud adoption is still in the early stages, with significant on-premises workloads remaining [25][26] - Digital Realty is positioned to benefit from the evolving technology landscape, with a focus on providing value to enterprise customers [26][27] Power Procurement Challenges - The company is facing challenges in power procurement due to underinvestment in critical power infrastructure in the US [28][29] - Efforts are being made to innovate and find solutions, including investments in solar power in regions like South Africa [29][30] Pricing Environment - The pricing environment for data center services is positive, with consistent pricing dynamics observed in the zero to one megawatt category [35][36] - The hyperscale segment is experiencing increased competition and pricing power due to a broader buyer base [37][38] Financial Strategy and Growth Outlook - Digital Realty has successfully reduced leverage from seven times to close to five times and is building liquidity [51][52] - The company is targeting significant growth in funds from operations (FFO) per share, with guidance for 2025 indicating a growth rate of around 6% [56][57] Conclusion - Digital Realty is well-positioned to capitalize on the ongoing demand for data center services driven by digital transformation, cloud computing, and AI, while navigating challenges in power procurement and infrastructure development [3][5][28]