$DLR

Digital Realty Trust (DLR) reported $707M in annualized GAAP base rent bookings for Q1 2026, with a record $1.9B backlog. Equinix (EQIX) saw 16.4% revenue growth and raised AFFO guidance. Iron Mountain (IRM) grew revenue by 39% YoY, driven by data center leasing. All three REITs are benefiting from AI-driven data center demand.

Digital Realty (DLR) is acquiring a 40-acre office campus in Rolling Meadows, Illinois, for $81.5 million. The seller, Brennan Investment Group, bought the property out of foreclosure in 2023 for $27 million. This deal follows Digital Realty's $90 million purchase of the Hawthorne Race Course property in Stickney, Illinois. Both acquisitions highlight the company's expansion in the Chicago area, though local pushback may pose challenges.

Equinix (EQIX) earns an A for dividend coverage with a 50% AFFO payout ratio and 11-year growth streak. Digital Realty (DLR) grades a C, with a frozen dividend despite accelerating FFO growth. EQIX targets 9-12% annual AFFO growth through 2029. DLR's dividend has not increased since 2022, while Core FFO per share rose from $1.77 to $2.04. EQIX is up 36.15% YTD, while DLR gained 20.05%.

Singapore's draft Digital Infrastructure Bill outlines security and resilience requirements for large datacentres and cloud services, but does not address cross-border data protection. Companies must comply with overlapping regulations when data leaves the country. The bill also introduces energy efficiency requirements. Providers like Digital Realty, Equinix, Keppel Data Centres, and ST Telemedia Global Data Centres were recently allocated capacity in Singapore.

Mizuho maintains Outperform ratings on Equinix (EQIX) with a $1,275 price target and Digital Realty (DLR) with a $223 price target, citing potential gains of 22% and 20% respectively. The firm notes growing state and community opposition to data center construction due to concerns over electricity, water use, and environmental impacts. Mizuho believes under-construction projects are less at risk, but land banks may face some uncertainty.

The expansion of AI data centers in the U.S. has led to increased patent disputes. Valtrus and Xockets have filed lawsuits against companies like Equinix, Digital Realty, NVIDIA, Microsoft, and Amazon, targeting cooling, DPU, and other technologies. Investments in AI data centers are projected to reach $5.2 trillion by 2030, with potential impacts on involved companies and their customers.

In August 2026, global data center investments surged, driven by AI, cloud, and high-performance computing demands. Key projects include Zerra DC's AU$31B 2.2GW campus in Australia, Schwarz Group's €5.6B German data center, and Digital Realty's 50MW Singapore expansion. Other notable developments are in India, Brazil, Vietnam, Sweden, and the US, reflecting a race to secure power and land for AI infrastructure.

Rystad Energy reports global data centre water use could rise from 222 billion litres in 2025 to 644 billion by 2030 without efficiency gains, driven by AI expansion. Active water-saving measures could reduce this to 543 or 388 billion litres. Water use varies by cooling tech, climate, and electricity supply. AWS, Meta, Microsoft, and others report differing WUE metrics and aim to be water-positive by 2030. Regulations are emerging in Europe, Singapore, and the US.

Digital Realty (DLR) began constructing ZUR4, a 15 MW data center in Switzerland, expanding its Glattbrugg campus. The facility aims to support AI workloads and sustainable operations, with completion planned for 2028. The company highlights growing demand for digital infrastructure in Europe.

Singapore awarded 200 MW of data-centre capacity to Equinix, Digital Realty, Keppel Data Centres, and ST Telemedia Global Data Centres. The new facilities must use at least 50% renewable energy, presenting challenges like price uncertainty and supply bottlenecks.