Digital Realty Trust (DLR) 47th Annual Raymond James Institutional Investor Conference summary

Company positioning and business model

• Operates over 300 data centers in 55+ markets across six continents, positioning as a full spectrum provider in the data center industry.

• Offers two core products: connectivity-centric colocation (zero to one-plus interconnection) and large-scale deployments (greater than a megawatt), serving both latency-sensitive and compute-heavy applications.

• Strategic shift over the past decade to expand from wholesale to connectivity-driven business, including acquisitions like Telx, Interxion, and assets from Equinix.

• Approximately 35% of lease roll is now in connectivity-driven business, 60% in wholesale, and 5% in legacy triple net.

• Differentiates from private competitors by offering both connectivity and scale, creating Connected Campuses in major metros.

AI, demand drivers, and market trends

• Supports digital transformation, cloud, and AI as ongoing demand drivers, with recent growth in AI training and early AI inference deployments.

• AI-related deployments are growing, especially in compute-heavy applications, but the company is not yet at giga-scale levels seen in remote locations.

• Focuses on building in and around connectivity hubs, with suburban locations for compute-heavy needs.

• Recent expansion into new markets such as Greece, Indonesia, and Bulgaria to build a global connectivity hub.

Power and infrastructure challenges

• Power availability is the main constraint for future expansion, with a preference for grid power due to reliability and practicality in dense urban areas.

• Exploring bridge solutions like microgrids, natural gas, and fuel cells, especially in markets with transmission constraints (e.g., Northern Virginia).

• Currently constructing 350 MW of capacity with an additional 300 MW planned, but future expansion depends on grid provider confirmations.

• In new international markets, leverages existing assets and local grid relationships, with innovative solutions like utility-scale solar in South Africa.