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Data Center REIT: Stock Set to Double?
23 Dec
Summary
- Digital Realty, a data center REIT, owns over 300 facilities globally.
- The data center industry is projected for 11% compound annual growth.
- The company offers a 3.3% dividend yield, surpassing the S&P 500 average.
Digital Realty Trust, a pioneer in the data center REIT sector since 2004, manages a vast portfolio of over 300 facilities across more than 25 countries. The company is strategically positioned to capitalize on robust industry tailwinds, with forecasts suggesting its stock price could double within five years.
The data center industry is experiencing an estimated 11% compound annual growth rate, further accelerated by the rapid advancement of technologies like artificial intelligence and quantum computing. Digital Realty is proactively expanding its footprint, acquiring land in key U.S. markets for new facility development.
Financially, Digital Realty reported nearly $4.5 billion in revenue for the first nine months of 2025, a 9% increase year-over-year. Operating income saw a substantial 66% rise due to effective cost management. The company also provides a competitive dividend yield of nearly 3.3%, offering investors a stable income stream.
