Digital Realty ( DLR Quick Quote DLR - Free Report) recently announced that it has partnered with HPE Greenlake Colocation ( HPE Quick Quote HPE - Free Report) to launch Data Hub on its PlatformDIGITAL®. This collaboration on DLR’s global platform helps accelerate digital business with a public cloud-like experience in a secure, compliant and sustainable environment. With Data Hub, customers will be able to quickly deploy critical HPE GreenLake infrastructure at centers of data exchange globally on PlatformDIGITAL®. It helps overcome Data Gravity’s issue. Further, customers will receive accessibility to a platform of connected data communities that includes 1,500+ enterprises, 1,200+ network service providers and 1,100+ cloud and IT providers. In addition, Data Hub benefits companies by simplifying infrastructure delivery, cutting costs and eliminating complexity by deploying on a single global platform. Moreover, it offers the flexibility of deploying almost anywhere in the world while following strict global compliance standards. Further, the companies will gain from the usage of 100% clean energy across PlatfromDIGITAL®'s US and European portfolios. The demand for high-performing data centers is likely to escalate in the coming years amid high growth in cloud computing, the Internet of Things (IoT) and big data and elevated demand for third-party IT infrastructure. Growth in artificial intelligence, as well as autonomous vehicle and virtual/augmented reality markets, is anticipated to be robust over the next five-six years, providing excellent growth opportunities for this data center REIT. As the number of IoT-connected devices continues to rise, it is projected that by 2025, on a per day basis, 463 exabytes of data will be created on a global scale. Further, companies worldwide are forced to switch to a more favorable IT architecture as the problems associated with Data Gravity aggravate. The need of the hour is a decentralized model that helps solve global coverage, control, capacity and connectivity requirements and Data Hub is well equipped to do so. Per Tony Bishop, SVP, Enterprise, Platform & Solutions, Digital Realty, "We're living in a world that's driven by data. And as it continues to explode in volume, velocity and value, enterprises are racing to implement hybrid IT models to address the performance of their data and unlock trapped value, all while ensuring stringent compliance standards in a constantly evolving regulatory environment." DLR currently carries a Zacks Rank #3 (Hold). Shares of Digital Realty have declined 6.7% in the past three months compared with the industry’s fall of 15%. Image Source: Zacks Investment Research Stocks to Consider
Some better-ranked stocks from the REIT sector are
Host Hotels & Resorts ( HST Quick Quote HST - Free Report) and OUTFRONT Media ( OUT Quick Quote OUT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Host Hotels’ 2022 FFO per share has moved 5.1% upward in the past month to $1.65. The Zacks Consensus Estimate for OUTFRONT Media’s ongoing year’s FFO per share has been raised 7.7% over the past two months to $2.09. Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.