Should New Oracle Cloud Ties in Singapore Require Action From Digital Realty Trust (DLR) Investors?

• Recently, Digital Realty announced new Oracle Cloud Infrastructure FastConnect connectivity and an Oracle Solution Center in Singapore, while reporting stronger-than-expected earnings and higher full-year guidance driven by growing AI and cloud infrastructure demand.
• By pairing AI-ready data center investments with enhanced cloud connectivity for major clients like Oracle in Southeast Asia, Digital Realty is reinforcing its role as a core enabler of AI and hybrid cloud workloads across its global platform.
• Now we’ll explore how this new Oracle connectivity in Singapore may influence Digital Realty’s AI-focused investment narrative and outlook.

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Digital Realty Trust Investment Narrative Recap

To own Digital Realty, you need to believe that AI and cloud infrastructure demand will keep supporting its global data center platform and record leasing backlog, even as earnings are forecast to decline. The new Oracle connectivity and Solution Center in Singapore strengthen its AI and hybrid cloud story, but do not materially change the near term balance between strong demand as a catalyst and interest rate and financing risks that remain front of mind.

The Oracle Cloud Infrastructure FastConnect point of presence and Oracle Solution Center in Singapore directly tie into Digital Realty’s AI focused development, including higher density, liquid cooled designs and its growing hyperscale relationships. For investors watching the backlog and new leasing as key catalysts, this type of connectivity deal helps illustrate how existing assets can be made more relevant to AI and hybrid cloud workloads across regions like Southeast Asia.

Yet despite this AI driven momentum, investors should be aware that rising interest costs and capital market volatility could still...

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. This requires 11.5% yearly revenue growth and a $0.3 billion earnings decrease from $1.3 billion today.

Uncover how Digital Realty Trust's forecasts yield a $199.22 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community valuations span roughly US$110 to US$237 per share, underscoring how far apart investor expectations can be. You might weigh those views against the risk that higher interest rates and volatile funding conditions could pressure Digital Realty’s earnings and limit how aggressively it can keep building AI ready capacity.

Explore 3 other fair value estimates on Digital Realty Trust - why the stock might be worth as much as 49% more 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.

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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.

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