Digital Realty Trust, Inc. (NYSE:DLR) Q1 2024 Earnings Call Transcript

Andrew Power: Hey. Thanks, Erik. So just more on the tactical on the quarterly bookings. I mean, we’re out of the gates here with a great start on both the less than megawatt category, call it, north of 50 for several consecutive quarters now. I think two in a row north of 53, great new logos contribution and obviously an overall record, which we discussed. By and large, I wouldn’t say usually another record follows the prior record. On the one hand, but on the other, we’re certainly in a different territory right now in terms of demand. We have the large capacity blocks that are deeply sought after. We have a team focused on executing and we got three more at bats in 2024 to put those results up. A bigger backdrop if you look back at cloud globalizing, it’s one of those things that the famous quote, it happened slowly and it happened really fast.

I can remember years of the — of the thesis being it’s going to globalize forever and ever and then it really took off. So I’m not — I couldn’t pound the table saying 2024 year is the year that AI globalizes like cloud, but size do point that it should follow a similar trend over time.

Operator: Thank you. That concludes the question-and-answer portion of today’s call. I’d now like to turn the call back over to President and CEO, Andy Power, for his closing remarks. Andy, please go ahead.

Andrew Power: Thank you all for dialing in. We really appreciate it. Digital Realty had a strong first quarter with record result that reflected the growing impact of AI on our business. Fundamental strength continued through the first quarter with healthy same capital organic growth and robust re-leasing spreads. We’ve continued to innovate with the expansion of ServiceFabric, new products like our private AI exchange, along with modular designs to accommodate increasingly power dense workloads. Finally, we’ve closed a number of transactions already this year, bringing additional private capital and enhancing our ability to deliver new capacity to meet our customers’ growing needs. We are excited about this quarter’s results and look ahead with continued optimism.

The three key demand drivers, AI, cloud and enterprise digital transformation are showing no signs of letting up and we are well positioned with over 300 data centers across the key markets around the world. I’d like to thank everyone for joining us today and would like to thank our dedicated and exceptional team at Digital Realty, who keep the digital world running. Thank you.

Operator: Thank you. The conference has now concluded and we thank you for joining today’s presentation. You may now disconnect your line. And have a wonderful afternoon.