Truist raised its price target for Digital Realty to $225 from $208. The firm maintains a Buy rating on the data center REIT.
Analysts cite favorable supply and demand dynamics within the data center market. Momentum remains strong in both hyperscale and colocation segments.
Digital Realty recently acquired land in Kansas City for hyperscale development. The company also increased its stake in Teraco, a data center platform in Africa.
These strategic moves aim to capture growing demand from AI and cloud computing. The transactions expand the company's development capacity and connectivity portfolio.