Digital Realty

Renewal pricing and scarcity support pricing power. In Q3 2025, cash renewal spreads were 8.0% and management continued to report strong spreads through year‑end with 6.1% cash increases in Q4 2025 despite mix shifts.

Backlog conversion, AI‑led demand, and power scarcity in U.S. markets should underpin mid‑single to high‑single digit pricing in 2026. Counterweights include customer concentration with hyperscalers and the capital intensity of adding power at scale, which can cap near‑term operating leverage.

Overall, pricing power is solid and likely strengthening where power is the binding constraint.