How Investors May Respond To Digital Realty Trust (DLR) $11 Billion India AI Data Center Bet

• In November 2025, Digital Realty Trust announced an approximately US$11.00 billion joint venture with Reliance Industries and Brookfield Corporation to build 1 gigawatt of AI-focused data capacity in India, alongside a US$373 million supply capacity agreement with Schneider Electric and an expanded AI infrastructure collaboration at its Northern Virginia campus with NVIDIA.
• These moves signal Digital Realty Trust’s push to secure power equipment, hyperscale partners, and international scale as AI workloads reshape global data center demand.
• We’ll consider how the huge India AI joint venture with Reliance and Brookfield could reshape Digital Realty’s existing investment narrative.

Uncover the next big thing with financially sound penny stocks that balance risk and reward.

Digital Realty Trust Investment Narrative Recap

To own Digital Realty Trust, you generally need to believe that long term demand for AI and cloud infrastructure will support its growing global data center footprint and backlog. The new India AI joint venture, Schneider Electric supply deal and NVIDIA expansion all speak directly to that demand story, but they also sharpen the near term tension between growth ambitions and financing or execution risk in large scale, power hungry developments.

Among the latest announcements, the US$373 million supply capacity agreement with Schneider Electric stands out because it directly addresses power equipment availability, a critical bottleneck for turning Digital Realty’s record leasing backlog into revenue. Locking in manufacturing capacity and economies of scale may help the company bring new AI focused capacity online more reliably, but it does not remove the broader risks from capital market volatility or higher interest costs.

Yet even as Digital Realty leans into AI infrastructure growth, investors should be aware that...

Read the full narrative on Digital Realty Trust (it's free!)

Digital Realty Trust's narrative projects $7.9 billion revenue and $1.0 billion earnings by 2028.

Uncover how Digital Realty Trust's forecasts yield a $199.19 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for Digital Realty range widely from about US$110 to US$236 per share, underlining how far apart individual views can be. When you weigh those opinions against the company’s heavy investment in new AI focused capacity and the risk that financing costs or demand timing do not line up, it becomes even more important to compare several perspectives before deciding where you stand.

Explore 3 other fair value estimates on Digital Realty Trust - why the stock might be worth 31% less than the current price!

Build Your Own Digital Realty Trust Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Digital Realty Trust research is our analysis highlighting 5 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Digital Realty Trust research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Digital Realty Trust's overall financial health at a glance.

Looking For Alternative Opportunities?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• Outshine the giants: these 25 early-stage AI stocks could fund your retirement.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.
• This technology could replace computers: discover 27 stocks that are working to make quantum computing a reality.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com