Digital Realty DLR is strengthening its international footprint with its entry into Turkiye through a strategic joint venture with Ronesans Infrastructure. The partnership will bring Digital Realty’s PlatformDIGITAL to the Turkish market, targeting rising demand for cloud, artificial intelligence, connectivity and enterprise digital infrastructure.
Turkiye’s strategic location between Europe, the Middle East and Asia makes it an important hub for international internet traffic and regional data flows. Its expanding digital economy and growing adoption of cloud and AI technologies also create attractive opportunities for global cloud providers, enterprises, network operators and content platforms.
The joint venture’s first project will be a next-generation data center campus in Ankara with more than 22 megawatts of carrier-neutral IT capacity. Land, power and permitting have already been secured, and early construction has begun. The first facility is scheduled for completion in 2028 and is expected to serve enterprises, public-sector organizations and digital service providers.
Digital Realty and Ronesans also plan to expand into Istanbul, Turkiye’s largest commercial and financial hub. Together, the planned Ankara and Istanbul facilities are expected to create a connected and resilient digital infrastructure platform capable of supporting both domestic and international customers.
Final Outlook on DLR
Digital Realty’s entry into Turkiye through its joint venture with Ronesans Infrastructure strengthens its EMEA expansion strategy and positions the company to benefit from rising demand for cloud, AI and enterprise digital infrastructure. With the Ankara campus underway and further expansion planned in Istanbul, the partnership could enhance Digital Realty’s regional connectivity, broaden its customer reach and support long-term growth across an increasingly important digital corridor linking Europe, the Middle East and Asia.
However, competition, metro concentration, heavy development spending and sizable funding needs can constrain Digital Realty’s returns despite favorable near-term demand and pricing conditions.
Over the past three months, shares of this Zacks Rank #2 (Buy) company have tumbled 5.9% compared with the industry’s fall of 2.8%.
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Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Lamar Advertising LAMR and OUTFRONT Media OUT, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for LAMR’s 2026 FFO per share is pegged at $8.93, which indicates year-over-year growth of 8.1%.
The consensus estimate for OUT’s 2026 FFO per share has moved 1.3% upward over the past month to $2.32, calling for a rise of 16.6% year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).