Stock Pulse
Digital Realty Trust (DLR) is experiencing strong demand for its data center services, driven by AI, cloud computing, and hyperscale applications [1], [3], [4]. The company reported strong leasing activity and a healthy backlog in Q4 2024, despite a recent 25% stock decline due to investor concerns about AI spending impacting future growth [1]. DLR is expanding into Indonesia through a joint venture with Bersama Digital Infrastructure Asia [2], strengthening its Asia-Pacific presence and diversifying its portfolio. While some analysts see other AI stocks as potentially offering quicker returns, DLR's strong fundamentals, positive analyst outlook, and strategic partnerships with companies like Blackstone and Realty Income position it well for long-term growth [1], [3], [4]. DLR is allowing existing note holders to swap debt for stock, but this will not directly generate profit for the company [6].