Digital Realty Expands in Singapore as AI Demand Drives Growth

Digital Realty DLR is strengthening its presence in Singapore after being selected under the country’s second Data Center Call for Application. The company received a provisional allocation of 50 megawatts of capacity to develop a new data center at Jurong Town Corporation’s low-carbon data center park on Jurong Island. The planned facility is expected to expand Digital Realty’s Singapore platform with AI-ready and sustainability-focused infrastructure.

The new facility should enhance Digital Realty’s ability to support rising demand for artificial intelligence inference, high-performance computing and enterprise digital workloads across the Asia-Pacific region. Singapore has been a key market for Digital Realty since 2010 and currently houses its regional headquarters, Global Command Center and three operational data centers with roughly 84 MW of combined capacity. The Jurong Island project will become the company’s fourth data center in the country.

Growing adoption of cloud services, digital platforms and enterprise data processing is driving demand for additional digital infrastructure. AI is adding to this momentum as enterprises increasingly require infrastructure located closer to users and corporate data. Once operational, the new data center is expected to connect customers with Digital Realty’s global PlatformDIGITAL ecosystem and expand its interconnected Singapore campus through ServiceFabric, supporting connectivity and workload deployment across multiple sites.

Final Outlook on DLR

Digital Realty appears well positioned to benefit from the continued expansion of AI, cloud computing and enterprise digital workloads. The planned addition of 50 MW of capacity in Singapore strengthens its presence in a strategically important Asia-Pacific market. The company’s established Singapore operations, global PlatformDIGITAL ecosystem and expanding interconnected campus reinforce its competitive position, supporting long-term growth opportunities.

Over the past three months, shares of this Zacks Rank #2 (Buy) company have gained 1.9% against the industry’s fall of 2.2%.

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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 3.4% 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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This article originally published on Zacks Investment Research (zacks.com).

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