Digital Realty Reports $1.6B Revenue in Q4 2025, $817M Lease Backlog Signals Strong Data Center Demand

Digital Realty, the largest global provider of cloud- and carrier-neutral data center, colocation and interconnection solutions, reported fourth quarter 2025 financial results on February 5, 2026, showing revenue of $1.6 billion and a lease backlog of $817 million of annualized GAAP base rent at the company's share.

The Austin, Texas-based real estate investment trust reported net income available to common stockholders of $0.24 per share in the fourth quarter of 2025, compared to $0.51 per share in the same quarter last year. The company delivered Core Funds From Operations (FFO) per share of $1.86 in the fourth quarter, compared to $1.73 per share in the fourth quarter of 2024.

Strong Revenue Growth and Leasing Activity

Digital Realty's fourth quarter revenue of $1.6 billion represented a 4% increase from the previous quarter and a 14% increase from the same quarter last year. The company generated Adjusted EBITDA of $857 million in the fourth quarter of 2025, a 1% decrease from the previous quarter and a 14% increase over the same quarter last year.

The data center real estate provider signed total bookings during the fourth quarter of 2025 that are expected to generate $400 million of annualized GAAP rental revenue at 100% share. At Digital Realty's share, total bookings were $175 million, including a $96 million contribution from the 0-1 megawatt plus interconnection category.

Digital Realty reported rental rate increases on renewal leases of 6.1% on a cash basis in the fourth quarter of 2025. The company's lease backlog of $817 million of annualized GAAP base rent at year end 2025 provides visibility into future revenue streams.

Development Activity and Financial Position

The company reported Funds From Operations (FFO) of $658 million in the fourth quarter of 2025, or $1.89 per share, compared to $1.65 per share in the previous quarter and $1.61 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share of $1.81 in the fourth quarter of 2025 and $7.29 per share for the twelve-month period ended December 31, 2025.

During the quarter, Digital Realty sold a non-core Dallas data center for $33 million as part of portfolio optimization efforts.

2026 Outlook

Digital Realty introduced 2026 Core FFO per share guidance of $7.90 to $8.00 on both a reported and Constant-Currency basis. CEO Andrew Power stated that Digital Realty delivered "strong financial results in 2025, with robust top-line growth, record leasing across our 0-1 megawatt plus interconnection offering."