Digital Realty Trust green notes receive BBB rating from Fitch

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Digital Realty green notes BBB rating

Highlights

Fitch Ratings assigned a BBB rating to Digital Constellation B.V.'s CHF 510 million senior unsecured green notes, due 2029–2036, guaranteed by Digital Realty Trust entities.
Net proceeds from the notes will finance or refinance eligible green projects and support general corporate purposes, including repayment of near-term debt maturities.
Fitch maintains a stable outlook on the company, citing robust AI and cloud-driven demand supporting credit metrics, with leverage in the high 4.0x range and EBITDA growth offsetting development debt.

Swiss franc green debt issuance

As reported by Fitch Ratings, the agency has assigned a BBB rating to Digital Constellation B.V.'s CHF 510 million senior unsecured green notes, made up of CHF 225 million of 1.6803% notes due October 2029, CHF 185 million of 2.06% notes due October 2032, and CHF 100 million of 2.415% notes due October 2036.

The notes are fully and unconditionally guaranteed by Digital Realty Trust, Inc., Digital Realty Trust, L.P., and Digital Intrepid Holding B.V., all rated BBB with a stable outlook. Fitch says the securities rank equally in right of payment with existing and future senior unsecured obligations of the issuer and guarantors, including the group's global revolving credit facilities.

Net proceeds are set to finance or refinance eligible green projects under the company's green financing framework and to support general corporate purposes, including repayment of near-term debt maturities.

Data center demand underpins credit profile

Fitch says Digital Realty's credit profile continues to benefit from sector tailwinds tied to AI demand, cloud adoption and the shift away from on-premise data centers. The agency says demand growth, especially for hyperscale AI-related applications, continues to exceed supply, supporting record leasing, firm pricing and an expanding development pipeline.

At the same time, Fitch notes that AI remains a relatively nascent technology with business cases that are not yet fully clear, while the company's joint venture structures are described as opaque with limited public documentation. A broader slowdown in AI-led or overall demand could weigh on the business, according to the rating agency.

Fitch says Digital Realty's leverage remains in the high 4.0x range on a last-12-month REIT basis, leaving headroom within the current rating category and improving materially from several years ago. The agency expects leverage to stay within its 5x-6x through-the-cycle expectation for the rating, with EBITDA growth from lease commencements largely offsetting debt used to fund a growing development pipeline.

The rating view is also supported by the company's global scale. As of June 30, 2026, Digital Realty owns, leases and operates more than 310 facilities across more than 55 cities in over 30 countries on six continents, with non-U.S. operations accounting for close to half of revenue.

Legrand’s upgraded medium-term targets driven by data centre demand outlined how the company is raising its growth and margin outlook through 2030 as AI-related infrastructure spending accelerates. Our earlier article also noted that Legrand expects a larger share of revenue to come from energy and digital transition activities, reflecting a portfolio shift toward data centre infrastructure and related solutions.

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