Digital Realty (DLR) Unveils Solution to Meet Data Challenges
Digital Realty DLR has taken a significant stride by announcing the availability of high-density colocation services across its global data center platform, PlatformDIGITAL. The company recently reported stellar second-quarter 2023 results aided by strong enterprise leasing activity, robust renewal spreads and healthy organic growth.
The newly introduced services are equipped with high-performance computing ready infrastructure configurations. These will empower businesses to overcome processing and proximity challenges linked to unstructured and exponential data growth. Further, these will enable the utilization of artificial intelligence (AI).
Specifically, the solution provides high-density support for workloads of up to 70 kilowatts per rack and makes use of innovative Air Assisted Liquid Cooling technologies to enhance cooling. This effectively addresses the challenges related to managing and harnessing the power of vast amounts of data faced by businesses without compromising on the performance.
Additionally, DLR’s extensible and sustainable solution is accessible globally in 28 markets across three regions including North America, EMEA and Asia-Pacific.
Hence, customers will be able to maximize their high-density colocation deployments by leveraging PlatformDIGITAL’s comprehensive ecosystem of connected data communities that allows for secure, low-latency connections and high-speed data transfer to the businesses.
Scott Mills, senior vice president engineering and customer solutions at Digital Realty stated, “We recognize the data management challenges that companies are facing, where the exponential growth in data can hinder performance and innovation. This offering will enable businesses to unlock new possibilities, quickly deploy high performance infrastructure on a global platform, and achieve optimal performance in the age of AI.”
The demand for high-performing data centers is likely to increase in the coming years amid high growth in cloud computing, the Internet of Things (IoT), big data and elevated requirement for third-party IT infrastructure.
Also, growth in AI, autonomous vehicle and virtual/augmented reality markets is expected to escalate over the next five to six years. DLR’s global data center portfolio remains well-poised to capitalize on this upbeat trend, which bodes well for long-term growth.
Nonetheless, stiff competition from industry peers and a high-interest-rate environment remain key concerns for the company.
DLR currently carries a Zacks Rank #3 (Hold). Its shares have rallied 5.1% in the past six months against the industry’s decline of 10.2%.
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Stocks to Consider
Some better-ranked stocks from the REIT sector are Ventas VTR and Welltower WELL, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s current-year funds from perations (FFO) per share has moved marginally upward in the last seven days to $3.51.
The Zacks Consensus Estimate for Ventas’ 2023 FFO per share has been raised marginally over the past month to $3.00.
Note: Anything related to earnings presented in this write-up represent FFO — a widely used metric to gauge the performance of REITs.
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