Digital Realty Logs Record 200 MW Lease, Boosts Backlog to $1.8 Billion
Inflation-driven build cost increases and design changes have raised Americas cost per megawatt, while a record 200 MW lease—the company’s largest—extends delivery phases into 2028. Development pipeline now spans 6 GW with an $1.8 billion backlog and an 870-acre Atlanta acquisition for a 1 GW campus.
1. Build Cost and Design Inflation
Inflation in build costs and incorporation of liquid cooling infrastructure have increased cost per megawatt in the Americas development pipeline, pressuring margins but reflecting investment in advanced designs.
2. Record 200 MW Lease and Extended Delivery
The company signed its largest-ever 200 MW lease, lifting its total backlog to $1.8 billion; this project will be delivered in phased segments from next year through 2028, resulting in an extended commencement lag.
3. Development Pipeline and Strategic Acquisitions
Digital Realty’s development pipeline expanded by 6 GW of growth capacity, underpinned by the acquisition of 870 acres in Greater Atlanta for a 1 GW campus and additional land secured in Hillsborough for hyperscale development.
4. AI and Hyperscale Demand Dynamics
AI inference demand has transitioned from pilot to production, with hyperscale contracts spanning 15 years and featuring escalators above 3%, and the portfolio’s low-latency, high-density interconnection is well positioned to meet robust enterprise commitments.