Digital Realty Launches Operations in Milan, Broadens Its Southern European Presence

Digital Realty Expands Presence in Milan and Southern Europe

Digital Realty has recently made a significant move by establishing operations in Milan, further enhancing its digital infrastructure throughout the Mediterranean and Southern Europe. This expansion reinforces its leadership in one of Europe’s most vibrant and economically influential regions, linking major cities such as Athens, Marseille, and Sofia. New developments are also underway in Barcelona, Crete, and other strategic locations.

The company has acquired two adjacent land parcels in Abbiategrasso, located southwest of Milan and just a kilometer apart. DLR plans to build a new campus along the southwest subsea traffic corridor, connecting Milan with Genoa and Savona. Positioned near two existing hyperscale areas, the upcoming facility is set to boost digital service capacity in Northern Italy and neighboring regions for years to come.

Initially, Digital Realty intends to launch an 8-megawatt (MW) site focused on retail colocation and interconnection needs, with completion targeted for 2028. The larger plot will allow for future expansion up to 84 MW, addressing the growing requirements for artificial intelligence (AI), cloud computing, and enterprise solutions.

By investing in Milan’s digital infrastructure, Digital Realty aims to support the city’s evolution as a technological hub, nurturing new content, interconnection, and cloud communities, while ensuring sufficient capacity for AI and hyperscale projects. This Milan initiative complements the company’s ongoing development in Rome, where its first facility, ROM1, is expected to open in early 2027.

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Accelerating Data Center Growth Across Europe

Digital Realty continues to rapidly expand its data center network to capitalize on the surge in AI-driven demand. In March 2026, the company entered Portugal by acquiring a data center in Lisbon, which will support up to 2.4 MW of IT load and is expected to be operational in early 2027. This move provides access to a vital connectivity gateway linking Europe with the Americas and Africa.

Further strengthening its European presence, Digital Realty recently acquired Telepoint, a prominent interconnection hub in Sofia, Bulgaria. This deal adds two data centers to its portfolio and enhances its footprint in Southeast Europe.

Strategic Investments and Market Performance

Digital Realty’s targeted investments and expansion into key connectivity markets demonstrate its commitment to scaling its platform and increasing its global reach. These efforts are expected to position the company favorably to meet the rising demand for digital infrastructure in the years ahead.

Over the past month, shares of this Zacks Rank #3 (Hold) company have climbed 12.8%, outpacing the industry’s 0.9% increase.

Top REIT Stocks to Watch

• Chatham Lodging Trust REIT CLDT – Zacks Rank #1 (Strong Buy)
• Terreno Realty TRNO – Zacks Rank #2 (Buy)

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The Zacks Consensus Estimate for CLDT’s 2026 funds from operations (FFO) per share stands at $1.20, reflecting a projected year-over-year increase of 17.7%. For TRNO, the consensus estimate for full-year FFO per share is $2.79, indicating a slight rise compared to the previous year.

Note: All earnings figures refer to funds from operations (FFO), a standard metric for evaluating REIT performance.

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Additional Resources

• Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report
• Terreno Realty Corporation (TRNO): Free Stock Analysis Report
• Chatham Lodging Trust (REIT) (CLDT): Free Stock Analysis Report