Digital Realty Trust, Inc. Revenue in 2024

Digital Realty Trust, Inc. reported $5.5B in revenue for fiscal year 2024. This represents a growth of 7.6% compared to the 2023 figure of $5.2B.

Revenue of $5.55 billion in 2024, up from $5.16 billion in 2023, reflects both organic growth from existing facilities as tenants expand their footprint and incremental revenue from new capacity coming online. Net income of $1.2 billion understates cash generation because the REIT structure allows for substantial depreciation of the real estate assets, and funds from operations — the metric REIT investors use — is meaningfully higher. The $52 billion market capitalization against $5.55 billion in revenue implies a premium multiple reflecting the durability and growth trajectory of data center demand. AI infrastructure investment by hyperscalers — Microsoft, Amazon, Google, Meta — is the most discussed tailwind, and it is real: each AI training cluster requires enormous amounts of power and cooling that Digital Realty's existing facilities can supply faster than new hyperscaler-owned capacity can be built. The REIT structure creates both advantages and constraints. As a REIT, Digital Realty must distribute at least 90% of taxable income as dividends, limiting retained capital for expansion. Growth requires either debt or equity issuance, both of which carry cost. The company has funded its expansion primarily through a combination of long-term lease debt and periodic equity raises — a capital structure that works well when borrowing costs are low and becomes more challenging when interest rates rise. The Interxion acquisition at approximately $8.4 billion in 2020 was the largest in company history and the clearest signal of where management saw the growth vector: not in adding more North American facilities to an already-concentrated market, but in bringing European enterprise and hyperscaler customers into the same platform that Digital Realty offered globally.