On Thursday, Digital Realty Trust Inc. (NYSE:DLR) said it is targeting nearly 7 billion Singapore dollars (about $5.5 billion) in total investment in Singapore, including more than 4.3 billion Singapore dollars for new data center developments, as it expands its Asia-Pacific artificial intelligence infrastructure footprint.
“Singapore is emerging as a critical hub for AI inference in Asia Pacific,” said Serene Nah, managing director and head of Asia Pacific at Digital Realty, citing demand for secure, low-latency infrastructure close to data and users.
The company has nearly doubled its Singapore workforce to more than 300 employees over the past three years and expects to reach 400 by 2030. Nearly 90% of its local staff are Singapore nationals.
Digital Realty operates a 24/7 Global Command Center in Singapore and plans to launch a Digital Realty Innovation Lab at its Loyang facility in the second half of 2026 to support AI and hybrid cloud testing.
The investment also includes collaborations on early-stage quantum data center initiatives. The company said Singapore’s connectivity, governance and proximity to users position it as a key hub for latency-sensitive AI inference workloads.
Expands AI Capacity in Japan
Earlier this week, Digital Realty opened its NRT14 data center in Inzai City, Japan, marking the third facility at its NRT campus and bringing total capacity close to 100 megawatts.
The site is built for high-density AI workloads, featuring hybrid liquid- and air-cooling systems and supporting up to 150 kilowatts per rack.
Technical Analysis
At $185.63, the stock is trading 3.7% above its 20-day simple moving average (SMA) of $178.98, indicating short-term bullish momentum. Additionally, it is 11.4% above its 100-day SMA of $166.76, which suggests a strong intermediate-term trend.
The relative strength index (RSI) currently sits at 66.17, indicating that the stock is approaching overbought territory, which may suggest a potential pullback if momentum wanes.
- Key Resistance: $186.50 — This level may act as a barrier for upward movement.
- Key Support: $178.00 — A drop below this level could signal a shift in momentum.
Digital Realty has shown a solid 12-month performance with a gain of 27.34%, reflecting strong investor interest and positioning within the market. Currently, the stock is trading near its 52-week high of $186.45, which suggests bullish sentiment as it approaches this critical level.
Earnings & Analyst Outlook
The countdown is on: Digital Realty is set to report earnings on April 23, 2026 (confirmed).
- EPS Estimate: $1.06 (Down from $1.77)
- Revenue Estimate: $1.60 billion (Up from $1.41 billion)
- Valuation: P/E of 51.9x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $196.32. Recent analyst moves include:
- Truist Securities: Buy (Raises Target to $207.00) (March 31)
- Barclays: Equal-Weight (Raises Target to $182.00) (March 18)
- Bernstein: Initiated with Outperform (Target $218.00) (March 5)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Digital Realty, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 17.13 — Indicates the stock is trading at a steep premium relative to peers.
- Growth Rank: 92.96 — Suggests strong growth potential compared to the market.
- Quality Rank: 50.8 — Reflects a balanced financial health profile.
- Momentum Rank: 71.3 — Indicates the stock is outperforming the broader market.
The Verdict: Digital Realty’s Benzinga Edge signal reveals a growth-heavy profile with strong momentum, but it faces challenges in value perception due to its premium valuation. Investors should watch for how the upcoming earnings report aligns with the company’s strategic initiatives and market expectations.
Top ETF Exposure
- Intelligent Real Estate ETF (NASDAQ:REAI): 9.52% Weight
- JPMorgan Realty Income ETF (NYSE:JPRE): 6.03% Weight
- Cohen & Steers Real Estate Active ETF (NYSE:CSRE): 8.78% Weight
Significance: Because DLR carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
DLR Stock Price Activity: Digital Realty Trust shares are trading lower by 0.36% at $184.96 during premarket trading on Thursday, according to Benzinga Pro data.
Photo via Shutterstock