Digital Realty Trust, Inc. (NYSE:DLR) announced a joint venture with Rönesans Infrastructure on September 14 to develop and operate data centers in Türkiye. The first Ankara campus is designed for more than 22 megawatts of IT capacity. Land, power and permits are secured, early construction has begun, and the first facility is scheduled for completion in 2028.
Digital Realty Trust, Inc. has established credible development foundations. The investment question is whether those foundations can support attractive returns once construction spending, customer contracts, and operating costs enter the calculation.
Bull Case
For Digital Realty Trust, Inc., securing land, electricity and permits reduces uncertainty around whether development can proceed. That matters because customer interest has limited commercial value when a developer cannot offer a credible delivery schedule. Construction progress can make discussions with prospective tenants more concrete.
Digital Realty Trust, Inc. also combines its global customer relationships and operating experience with Rönesans Infrastructure’s local development and construction capabilities. The potential benefit is practical: a partner familiar with local execution can help deliver the buildings, while an established data-center operator can help attract customers and manage their deployments.
Digital Realty Trust, Inc. is entering through a venture that also plans an additional Istanbul facility. A presence in both cities could appeal to customers seeking multiple locations for resilience and connectivity. Success in Ankara could therefore create a commercial foundation for further expansion, provided demand supports additional investment.
Bear Case
Digital Realty Trust, Inc. did not disclose ownership percentages, capital contributions, construction costs or signed customer commitments in the announcement. Without those terms, investors cannot assess the capital at risk or estimate a project return. A joint venture can distribute funding obligations, but its structure determines how much exposure each partner ultimately carries.
Digital Realty Trust, Inc. described planned campus capacity, which does not establish leased capacity or future revenue. The 2028 completion target concerns the first facility, rather than confirming that the entire campus will be operating then. Leasing volumes, contract pricing, and customer move-in schedules will determine how quickly construction spending begins producing income.
Digital Realty Trust, Inc. also faces the task of completing construction and commissioning the facility. Delays could extend the period before revenue starts, while cost overruns could weaken returns even if customer demand materializes. Secured electricity is valuable, but power pricing and the allocation of energy costs between operator and customer also affect the economics.
Hedge Fund Sentiment
The filings available so far reflect positions held before Digital Realty Trust, Inc. reported the formation of its Türkiye joint venture. Insider Monkey’s database showed 73 hedge funds holding Digital Realty Trust, Inc. at the end of 2Q2026, up from 46 funds three months earlier.
Conclusion
Digital Realty Trust, Inc. has a credible starting point for entering Türkiye. Secured development inputs and complementary partner capabilities strengthen the execution case, while the financial case remains unquantified.
The next useful disclosures are capital exposure, construction milestones, preleasing, and expected returns. Attractive contracts matched to disciplined spending would support the expansion thesis.
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This article is originally published at Insider Monkey.
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