Core Viewpoint - Digital Realty reported strong financial results for the second quarter of 2025, showcasing significant revenue growth and improved profitability metrics compared to previous quarters and the same quarter last year [2][10]. Financial Results - Revenues reached $1.49 billion, marking a 6% increase from the previous quarter and a 10% increase year-over-year [2]. - Net income was reported at $1.05 billion, with net income available to common stockholders at $1.02 billion, translating to $2.94 per share, up from $0.27 per share in the previous quarter and $0.20 per share in the same quarter last year [2][10]. - Adjusted EBITDA was $823 million, reflecting a 4% increase from the previous quarter and a 13% increase year-over-year [3]. - Funds From Operations (FFO) totaled $600 million, or $1.75 per share, compared to $1.67 per share in the previous quarter and $1.57 per share in the same quarter last year [3][10]. Leasing Activity - The company signed total bookings expected to generate $135 million of annualized GAAP rental revenue, with significant contributions from the 0–1 megawatt category and interconnection [5]. - Renewal leases represented $177 million of annualized cash rental revenue, with rental rates increasing by 7.3% on a cash basis and 9.9% on a GAAP basis [7][10]. - The backlog of signed-but-not-commenced leases at the end of the quarter was $826 million of annualized GAAP base rent [6][10]. Investment Activity - Digital Realty acquired land parcels in three metropolitan areas, including approximately 100 acres in Atlanta for $120 million and 167 acres in Dallas for $11 million, expected to support significant IT capacity [11]. - The U.S. Hyperscale Data Center Fund received over $3 billion in equity commitments, exceeding its initial target, and Digital Realty contributed interests in five operating data centers and two development sites to the Fund [12]. Balance Sheet - As of June 30, 2025, total debt outstanding was approximately $18.5 billion, with a net debt-to-Adjusted EBITDA ratio of 5.1x [14]. - The company issued €850 million of 3.875% notes due 2034, with net proceeds of approximately $975 million, and repaid €650 million in senior notes [15]. 2025 Outlook - Digital Realty raised its 2025 Core FFO per share outlook to $7.15 - $7.25 and Constant-Currency Core FFO per share outlook to $7.10 - $7.20 [16][10].

Core Viewpoint - Digital Realty is collaborating with Oracle to enhance the adoption of hybrid IT and AI solutions through Oracle Cloud Solution Centers, aiming to accelerate deployment and reduce time to market for organizations globally [1][2]. Group 1: Collaboration and Benefits - The partnership emphasizes a shared commitment to simplifying the complexities of hybrid IT and AI adoption, leveraging Digital Realty's Pervasive Data Center Architecture (PDx®) alongside Oracle's technologies [2]. - Customers are experiencing significant benefits, such as Grupo Anaya reducing latency and network costs by approximately 75% and improving end-user performance by up to 40%, achieving these results a year ahead of schedule [3]. Group 2: Infrastructure and Solutions - Oracle Solution Centers provide a secure environment for customers to design, test, and validate hybrid and AI architectures, available globally through Digital Realty's PlatformDIGITAL® [7]. - A library of 15 infrastructure configurations has been developed to assist customers in modernizing their IT and leveraging the latest AI and cloud innovations [7]. Group 3: Industry Perspective - The collaboration is highlighted as a strong example of how ecosystem partnerships can facilitate the real-world adoption of data-driven infrastructure, helping enterprises reduce complexity and shorten deployment timelines [5].

Group 1 - Digital Realty, the largest global provider of cloud- and carrier-neutral data center solutions, will release its financial results for Q2 2025 on July 24, 2025, after market close [1] - A conference call to discuss the financial results will take place at 5:00 p.m. ET / 4:00 p.m. CT on the same day [1] - Investors can participate in the call by dialing specific numbers for domestic and international callers and referencing the conference ID [2] Group 2 - Telephone and webcast replays of the conference call will be available starting one hour after the call until August 24, 2025 [3] - Digital Realty offers a comprehensive range of data center, colocation, and interconnection solutions, with a global footprint of over 300 facilities across more than 50 metropolitan areas in 25+ countries [4] - The company's PlatformDIGITAL® provides customers with secure data meeting places and a proven methodology for managing Data Gravity challenges [4]

Core Insights - Digital Realty has made significant strides in sustainability, achieving 1.5 gigawatts (GW) of renewable energy capacity under contract and matching 185 data centers with 100% renewable energy in 2024 [2][4] - The company reached 75% of its global electricity needs from renewable energy, marking a 9% increase from the previous year [4] - Digital Realty emphasizes the need for innovation and partnerships to advance sustainable practices in data center operations moving forward [3] Sustainability Performance - Renewable Energy: Digital Realty's renewable energy procurement includes 1.5 GW of new solar and wind projects, 8.8 megawatts (MW) of onsite solar installations, and 100% renewable energy for its portfolios in various regions [4] - Resource Conservation: The company is actively exploring initiatives to use resources responsibly, focusing on electricity and water conservation [4] - Energy Efficiency: Energy conservation initiatives are projected to save 42,400 megawatt hours (MWh) and 28,500 metric tons of carbon dioxide equivalent (MTCO2e) annually [4] - Water Usage: 42% of irrigation and cooling needs are met with non-potable water, and overall water usage intensity for the North American colocation portfolio was reduced by 14% year-over-year [4] Sustainable Building Practices - Digital Realty certified eight global data centers totaling 1.9 million square feet under sustainable building standards, with over 15 million square feet certified under green building standards [4] Resilience and Security - The company has a strong track record of reliability and resilience against operational, security, weather, and climate change-related events, supported by regular risk assessments and security safeguards [4]

Growth & Strategy - Digital Realty targets mid-single-digit Core FFO growth in 2026+ [9] - Digital Realty launched a US Hyperscale Data Center Fund targeting approximately $2.5 billion of LP capital commitments [24] - The US Hyperscale Data Center Fund has received subscriptions for commitments to date of over $800 million from institutional investors [31] Financial Performance & Position - Digital Realty's Net Debt to Adjusted EBITDA was 4.8x as of 4Q24 [14, 15, 40] - Digital Realty's equity market capitalization was $61 billion as of December 31, 2024 [17, 35] - Digital Realty's liquidity was $6 billion at the end of 2024 [17, 40] - Total 2024 bookings exceeded $1 billion [40, 79, 83] - Total 2024 renewals reached $970 million [40, 79] Portfolio & Capacity - Digital Realty has over 300 data centers [35, 79] - Digital Realty's global capacity is approximately 2,700 MW [44] - Digital Realty has over 3,500 MW of future development capacity [47] Customer Base & Connectivity - Digital Realty has over 5,000 customers [35, 79, 102] - Digital Realty has over 227,000 cross connects [35, 65, 79]

Core Insights - Summit Ridge Energy has partnered with Digital Realty to purchase 5.1 megawatts (MW) of solar energy, supporting Digital Realty's sustainability goals and energy cost savings [1] - The solar projects will enhance grid resilience in Illinois and create hundreds of construction and manufacturing jobs [2] - Digital Realty's commitment to renewable energy is part of a broader trend in the technology sector, driven by increasing energy demands [4] Company Overview - Summit Ridge Energy is the leading commercial solar company in the U.S., with over 2 gigawatts (GW) of solar power operating and in development [5] - The company has raised over $5 billion in project capital since its launch in 2017, financing more than 200 solar farms [6] - Digital Realty operates a global data center platform with over 300 facilities across 25 countries, providing a range of data center and interconnection solutions [7] Project Details - The solar energy purchase includes renewable energy credits from three Summit Ridge-owned solar projects in Illinois, expected to be operational by late 2025 to early 2026 [1] - The partnership aims to integrate more renewable energy into Digital Realty's operations while contributing to a more resilient power grid [4] - Summit Ridge's solar projects are part of a larger initiative to enhance grid stability, including voltage support and frequency regulation [4]