Core Insights - The demand for scalable and connected infrastructure is strong across various customer segments, including global cloud platforms and multinational enterprises, but challenges such as power availability and permitting are hindering supply [1][2][10] - Digital Realty Trust, Inc. has a competitive advantage due to its established presence in key metropolitan areas and strong relationships with utilities and local governments [1][10] - The data center industry has seen unprecedented demand driven by digital transformation, cloud expansion, and AI proliferation, leading to complex hybrid IT architectures [2][5] Financial Performance - Digital Realty Trust, Inc. reported a record core FFO per share of $1.89, a 13% increase year-over-year, with constant currency core FFO at $1.85, up 11% [4][25] - The company achieved strong operational metrics, including an 8% year-over-year growth in same capital cash NOI and a 10% increase in operating revenue [4][26] - The backlog grew to $852 million, with significant bookings in the zero to one megawatt interconnection category [3][23] Market Trends - AI-related deployments accounted for over 50% of quarterly bookings since mid-2023, indicating a strong trend towards AI workloads [8][11] - The company is witnessing a robust pipeline of demand for AI-oriented use cases, with significant interconnection leasing growth [13][22] - The data center market is experiencing a technology race, with major players investing heavily in infrastructure to support advanced AI models [5][6] Infrastructure and Capacity - Digital Realty Trust, Inc. maintains five gigawatts of IT load capacity across 40 strategic metros, which is expected to be in high demand as new applications evolve [10][11] - The company is actively engaged with hyperscale customers for future leasing opportunities, with a focus on large contiguous capacity blocks [14][41] - The development pipeline stands at $9.7 billion, with an expected stabilized yield of 11.6%, indicating strong future growth potential [27] Sustainability Initiatives - The company received the EcoVadis gold rating for sustainability, placing it in the 97th percentile of assessed companies [18] - Digital Realty Trust, Inc. is expanding its renewable energy commitments, including long-term agreements for clean hydropower [19][18] Guidance and Future Outlook - The company has increased its core FFO guidance for the full year 2025 by approximately 2% at the midpoint, reflecting better-than-expected performance [30][31] - Expectations for continued growth are supported by a healthy backlog and strong market fundamentals, with a target of 10% top-line growth [36][31] - The company anticipates a seasonal increase in repairs and maintenance expenses in the fourth quarter, which may temper core FFO growth [30][32]