- DLR
- AMD
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In late September 2026, Blackfuel announced it had chosen Digital Realty’s BCN1 data center in Barcelona to host and scale its liquid-cooled, AMD GPU-powered AI inference platform, tightly integrated with the ServiceFabric® interconnection network for low-latency, private connectivity.
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Coming shortly after Digital Realty’s plan to add a new cable landing station at its LAX12 facility, these moves highlight how the company is tying together subsea infrastructure and AI-optimized data centers to keep enterprise AI and data traffic closer to where it is generated and used.
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Next, we’ll assess how Blackfuel’s AI deployment on ServiceFabric® could influence Digital Realty’s investment narrative around backlog, development, and interconnection growth.
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Digital Realty Trust Investment Narrative Recap
To own Digital Realty Trust, you need to believe in its ability to turn a large AI and interconnection focused development pipeline into leased, cash generative assets without overbuilding or overstretching its balance sheet. The Blackfuel deployment at BCN1 and the new LAX12 cable landing station both support the near term interconnection and AI demand catalyst, but they do not materially change the key risk that heavy 2026 CapEx and external funding needs could weigh on returns if capital markets or leasing slow.
The LAX12 cable landing station project, slated to support subsea cables from 2028, ties directly into the same theme as the Blackfuel news by knitting subsea routes into Digital Realty’s interconnection fabric. Together with AI oriented wins like BCN1, this type of infrastructure can reinforce the existing catalyst around converting the US$1.9b lease backlog and US$410m of recent hyperscale signings into revenue as interconnected traffic grows.
Yet while these growth projects are front of mind, investors should also be aware that Digital Realty’s heavier reliance on external capital could…
Read the full narrative on Digital Realty Trust (it’s free!)
Digital Realty Trust’s narrative projects $9.7 billion revenue and $1.4 billion earnings by 2029. This requires 12.7% yearly revenue growth and an earnings increase of about $0.6 billion from $758.3 million today.
Uncover how Digital Realty Trust’s forecasts yield a $223.59 fair value, a 25% upside to its current price.
Exploring Other Perspectives
Three fair value estimates from the Simply Wall St Community span roughly US$223 to US$303 per share, underscoring how far apart individual views can be. Against that backdrop, the central debate around Digital Realty’s enlarged 1.4 GW, US$4.25b to US$4.75b 2026 CapEx plan and whether demand will match that build out invites you to consider several contrasting opinions on its future performance.
