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AI Investment Growth
Global spending on artificial intelligence (AI) is projected to reach $375 billion in 2023 and $600 billion by 2026, according to UBS. Companies are rapidly investing in AI technologies, as noted by BlackRock CEO Larry Fink, who emphasized that AI investments encompass not only GPUs and chips but also critical infrastructure like HVAC and power grids.
Digital Realty’s AI Infrastructure
Digital Realty, a data center REIT based in Dallas, currently operates over 300 data centers across more than 50 metropolitan areas. The company serves major clients including Microsoft, Amazon Web Services, and Nvidia, with over 250 Fortune 500 companies utilizing its facilities. Digital Realty has approximately 2.8 gigawatts of computing capacity, with plans for an additional 750 megawatts and potential development up to 7.5 gigawatts in total.
Financial Performance
In its latest earnings report, Digital Realty reported Q3 revenue of $1.57 billion, up from $1.43 billion year-over-year, with net income rising to $57.6 million. The company noted that over 50% of its recent bookings were related to AI. It has committed more than $900 million to capital expenditures to enhance its data center capacities, increasing its full-year guidance by $75 million for the third consecutive quarter.
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