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Digital Realty Trust Inc

DLR: XNYS (USA)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
$714.00VrtfzrBhmlhbm

Digital Realty Offers a Full Menu of Tenants’ Data Center Needs After Enhancing Connectivity Feature

Business Strategy and Outlook

Digital Realty has transformed its business from one that merely provided large companies vast amounts of space and power (a typical wholesale data center that houses few tenants) to one that can offer customers of all sizes the full spectrum of space, power, and connection needs (historically called a co-location data center that has space for many tenants). We think this evolution—largely through acquisitions that focused on network-dense data centers—was critical for success in a modern environment where enterprises rely more on third-party cloud providers, and the constant use of data makes quick and easy access vital. With a sizable presence across nearly every continent, Digital also offers more value for multinational companies that want a fluid solution across their data center footprint. Along with Equinix, we think these qualities make Digital Realty one of only two data center providers that can offer this breadth and set itself apart from the rest of the pack in an industry with secular tailwinds stemming from the creation and use of more and more data.

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