(Reuters) -Digital Realty Trust raised its annual forecasts for core funds from operations and revenue on Thursday, as it expects an increase in demand for data center services due to the boom in artificial intelligence.

Digital Realty has been benefiting from a surge in demand as more enterprises upgrade and outsource their IT infrastructure, further boosted by advancements in AI technology.

Large-scale cloud service providers called hyperscalers are racing to build AI infrastructure, with Amazon, Meta, Alphabet and Microsoft projected to spend over $360 billion in 2025, according to company filings.

Most of the investment is expected to go toward powering data centers.

The growing demand for data centers is expected to accelerate Digital Realty’s leasing activity, thereby aiding reve

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