How Does This Data Center REIT Operate?
Digital Realty Trust owns and operates data centers used by enterprises and other customers that need secure, always-on infrastructure. The business is built around providing space, power, and connectivity within its facilities, with customers using that capacity to run critical IT workloads. As a REIT, it runs a property-heavy operating model where ongoing investment in sites and equipment is central to keeping capacity available. At roughly USD 70 billion in market value, it operates at large scale.
Are Revenues Rising Without Margin Strain?
FundamentalsFor 2025, reported in USD, revenue reached about USD 6.1 billion, alongside EBIT of roughly USD 659 million and net income of about USD 1.3 billion. The year included 10.0% revenue growth, with trailing margins showing 57.50% at the gross line, 11.44% at operating income, and 21.73% at net income.
Reinvestment intensity shows up in depreciation and amortization of about USD 1.9 billion, while the cash flow proxy was around USD 2.5 billion. Cash on hand was roughly USD 3.5 billion at year-end.
Is The Market Overpaying For Growth?
DCF / MultiplesAt USD 200.70 per share, the price sits above the central fair value estimate of USD 156.89, between a weaker outcome around USD 111.02 and a stronger outcome around USD 209.44.
The stock also trades at 50.82x earnings (TTM) and 22.52x EV/EBITDA (TTM), alongside an 11.05x price-to-sales (TTM).
High Price Demands Strong Execution
TakeawayOperations are expanding, but the business absorbs heavy ongoing reinvestment. Margins need to hold up as the asset base keeps growing. Cash generation must stay resilient alongside high depreciation. If growth slows, today’s pricing will feel harder to justify.