Digital Realty Trust (DLR) 10-K risk factor changes: FY2021 vs FY2020

Please refer to the section entitled “Forward-Looking Statements” starting on page [removed: 46.][added: 45.]

[added: The risks that] we describe in our public filings are not the only risks that we face.

| | ● | Any failure of our physical [added: or information technology or operational technology] infrastructure or services could lead to significant costs and disruptions. |

| | ● | We may be vulnerable to breaches, or unauthorized access to, or disruption of our physical and information [removed: security] [added: technology and operational technology] infrastructure and systems. |

| | ● | We [added: and our customers] may experience supply chain or procurement disruptions, or increased supply chain costs, which may lead to [removed: construction] delays. |

If any such delay or disruption were to occur, it could have [removed: a material] [added: an] adverse effect on our liquidity and financial condition.

[removed: In] addition, risks related to epidemics, pandemics or other outbreaks of an illness, disease or virus may adversely affect the economies in impacted countries, including in locations where we operate, and the global financial markets, including the global debt and equity capital markets, may experience significant volatility, potentially leading to an economic downturn that could adversely affect our and our customers’, suppliers’ and business partners’ respective businesses, financial condition, liquidity, results of operations and prospects.

The global impact of the outbreak has been rapidly evolving and federal and local governments, including in locations where we operate, have responded by instituting quarantines, restrictions on travel, [removed: “shelter in place” rules,] restrictions on the types of business that may continue to operate, and restrictions on various construction projects.

While we did not have any material adjustments to amounts as of and during the year ended December 31, [removed: 2020,] [added: 2021,] circumstances related to the COVID-19 pandemic could potentially result in recording impairments, lease modifications and credit losses in future periods.

While we did not experience significant disruptions from the COVID-19 pandemic during the year ended December 31, [removed: 2020] [added: 2021] nor as of the date of this report, we cannot predict what impact the COVID-19 pandemic may have on our future financial condition, results of operations and cash flows due to numerous uncertainties.

[removed: If] any of our key customers were to do so, it could result in a loss of business to us or put pressure on our pricing.

We compete with numerous data center providers globally, many of whom own or operate properties similar to ours in some of the same metropolitan areas where our data centers are located, including Equinix, Inc. and NTT; [removed: CoreSite Realty Corporation, CyrusOne Inc., QTS Realty Trust, Inc.,] Switch, Inc. and various [removed: local developers] [added: private operators] in the U.S.; as well as Global Switch Holdings Limited and various regional operators in Europe, Asia, Latin America and Australia.

If the supply of data center space continues to increase as a result of these activities or otherwise, rental rates may be reduced or we may face delays in leasing or be unable to [added: lease our vacant space, including space that we develop.]

Any failure of our physical [added: or information technology or operational technology] infrastructure or services could lead to significant costs and disruptions.

We may be vulnerable to breaches, or unauthorized access to, or disruption of our physical and information [removed: security] [added: technology and operational technology] infrastructure and systems.

[removed: Security breaches, or disruption, of our or our customers’ physical or information technology infrastructure, networks and related management systems could result in, among other things, unauthorized] access to our facilities, a breach of our and our customers’ networks and information technology infrastructure, the misappropriation of our or our customers’ or their customers’ proprietary or confidential information, interruptions or malfunctions in our or our customers’ operations, delays or interruptions to our ability to meet customer needs, breach of our legal, regulatory or contractual obligations, inability to access or rely upon critical business records or other disruptions in our operations.

Although our customers’ computing equipment resides in our buildings, [removed: in most cases] we [added: generally] do not have access to, nor do we have knowledge of, what applications and data are being housed and processed on their equipment.

For example, the EU General Data Protection Regulation (GDPR), and any subsequent amended versions of it, and similar regulations [added: that apply to our business globally] may have significant impact on our [added: compliance frameworks and] operations.

We have [removed: made significant] [added: made, and continue to make,] investments to update and [removed: improve] [added: modernize] our information technology systems and expect such investments to continue in order to meet our business needs, including for ongoing improvements for our customer experience.

Transitioning to new or upgraded [removed: systems] [added: systems, and integrating acquired networks and data,] can create difficulties, including potential disruptions to current processes and [removed: security] [added: cybersecurity] complexities.

In addition, our information technology systems may require further modification as we grow and as our business needs change, which could prolong difficulties we experience with [removed: transitions.][added: such transitions and integrations.]

In addition, we may not realize the full benefits we hoped to [removed: achieve] [added: achieve,] and we may need to expend significant attention, time and [added: resources to correct problems or find alternative sources for performing various functions.]

Difficulties in implementing new or upgraded information [added: or operational] technology systems or significant system failures or delays or the failure to successfully modify our systems and respond to changes in our business needs could adversely affect our business and results of operations.

As of December 31, [removed: 2020,] [added: 2021,] the 20 largest customers in our portfolio represented approximately [removed: 48.8%] [added: 49.2%] of the total annualized [removed: rent] [added: recurring revenue] generated by our properties.

In addition, [removed: 64] [added: 45] of our [removed: 291] [added: 287] data centers are occupied by single customers, including data centers occupied solely by our top three customers.

As of February [removed: 26, 2021,] [added: 25, 2022,] we had no material customers in bankruptcy.

In the ordinary course of business, we enter into agreements with our customers pursuant to which we provide data center space, [removed: power] [added: power, environmental controls, physical security] and connectivity products to our customers.

At December 31, [removed: 2020,] [added: 2021,] we owned approximately [removed: 5.4] [added: 7.2] million square feet of space under active development and approximately [removed: 2.3] [added: 2.7] million square feet of space held for future development.

In addition, as of December 31, [removed: 2020,] [added: 2021,] customer agreements representing [removed: 26.0%] [added: 23.8%] of the square footage of the properties in our portfolio, excluding month-to-month leases and space held for development, were scheduled to expire through [removed: 2022,] [added: 2023,] and an additional [removed: 14.7%] [added: 17.2%] of the net rentable square footage, excluding space held for development, was available to be leased.

If the rental rates for our properties decrease, our existing customers do not renew their agreements, we do not lease or re-lease our available space, including newly developed space and space for which customer agreements are scheduled to expire, or it takes longer for us to lease or re-lease this [added: space or for rents to commence on this space, our financial condition, results of operations, cash flow, cash available for distribution and ability to satisfy our debt service obligations could be materially adversely affected.]

[removed: Any such] material loss of customers, liability or additional costs could adversely affect our business, financial condition and results of operations.

Our portfolio is located in [removed: 49] [added: 50] metropolitan areas.

As of December 31, [removed: 2020,] [added: 2021,] our portfolio, including the [removed: 43] [added: 50] data centers held as investments in unconsolidated [removed: joint ventures,] [added: entities,] was geographically concentrated in the following metropolitan areas:

| Northern Virginia | | [removed: 20.0] [added: 19.5] | % |

| Silicon Valley | | [removed: 6.6] [added: 6.1] | % |

| New York | | [removed: 6.3] [added: 6.2] | % |

| Sao [removed: Paulo, Brazil] [added: Paulo] | | [removed: 3.5] [added: 4.1] | % |

| [removed: Paris, France] [added: Paris] | | 2.2 | % |

| (1) | Annualized rent is monthly contractual rent (defined as cash base rent before abatements) under existing leases as of December 31, [removed: 2020,] [added: 2021] multiplied by 12. [added: Includes consolidated portfolio and unconsolidated entities at the entities’ 100% ownership level.] The aggregate amount of abatements for the year ended December 31, [removed: 2020] [added: 2021] was approximately [removed: $74.4] [added: $108.7] million. [removed: Includes consolidated portfolio and unconsolidated joint ventures at the joint ventures’ 100% ownership level.] |

These leased buildings accounted for approximately 15% of our total revenue for the year ended December 31, [removed: 2020.][added: 2021.]

In

If

Our systems may be susceptible to damage, interference, or interruption from modifications or upgrades, power loss, telecommunications failures, computer viruses, ransomware attacks, computer denial of service attacks, phishing schemes, or other attempts to harm or access our systems.

Security breaches, or disruption, of our or our customers’ physical or information technology or operational technology infrastructure, networks and related management systems and controls could result in, among other things, unauthorized

In certain instances, we provide digital infrastructure and platforms as a service to our customers, which increases the risk of loss of data, and we may expand these aspects of our business.

Additionally, as part of our global platform strategy, we have acquired and invested in, and continue to acquire and invest in, businesses and operations globally, including in new regions with complex and evolving regulatory frameworks and different risk profiles.

Our top three customers represented approximately 17.5% of the total annualized recurring revenue generated by our properties as of December 31, 2021.

Certain of our customer agreements may prohibit us from selling certain properties to a third party unless specified conditions are met.

Any such

| ​ | ​ | December 31, 2021 | |

| Chicago | | 9.0 | % |

| London | | 6.6 | % |

| Frankfurt | | 5.7 | % |

| Dallas | ​ | 5.5 | % |

| Amsterdam | | 4.2 | % |

| Singapore | | 4.0 | % |

| Phoenix | | 2.0 | % |

| Osaka | | 1.6 | % |

| Other | | 19.9 | % |

within existing data centers to offset such increase in lease payments.

Similarly, our customers may experience supply chain or procurement disruptions, constraints and increased costs, which may impact their ability to deploy in our facilities, which could have a material adverse impact on our business and financial condition.

Although to date, we have been able to manage through disruptions in our supply chain and procurement process due to the COVID-19 pandemic, continuing disruptions could have a material adverse impact on our business and financial condition.

Additionally, some of our customers have begun to operate their data centers

carriers and customers to our portfolio.

materially from actual results in future periods.

Sanchack, our Chief Operating Officer, and Cindy Fiedelman, our Chief Human Resources Officer.

A significant portion of our properties are

In addition,

Governmental authorities have in the past sought to restrict data center development based on environmental considerations.

For example, governmental authorities in locations where we operate have imposed moratoria on data center development, citing concerns about energy usage and requiring new data centers to meet energy efficiency requirements.

Some government agencies have also sought to restrict the use of diesel generators for back-up power.

We may face higher costs from any laws requiring enhanced energy efficiency measures, changes to cooling systems, caps on energy usage, land use restrictions, limitations on back-up power sources, or other environmental requirements.

Moratoria on data center construction could hinder our ability to construct new data centers.

See “Item 1.

number of shares, whichever is more restrictive) of the outstanding shares of Digital Realty Trust, Inc.’s common stock, 9.8% (by value or by number of shares, whichever is more restrictive) of the outstanding shares of any series of Digital Realty Trust, Inc.’s preferred stock and 9.8% of the value of Digital Realty Trust, Inc.’s outstanding capital stock.

| | | if the ultimate controlling person of the surviving partnership has publicly traded common equity securities, for such common equity securities, with an exchange ratio based on the determination of relative fair market value of such securities and the shares of Digital Realty Trust, Inc. common stock). |

and administrative interpretations.

If the IRS were successful in treating Digital Realty Trust, L.P. as an association or publicly

future events or trends and which do not relate solely to historical matters.

| --- | --- | --- |

The risks that

[Index to Financial Statements](#INDEX_423931)

| | ● | Our tax protection agreement may require the Operating Partnership to maintain certain debt levels that otherwise would not be required to operate our business. |

We have received requests for rent relief related to COVID-19, most often in the form of rent deferral requests or requests for further discussion, from

customers representing approximately 3% of annualized base rent.

We are evaluating each customer rent relief request on an individual basis, considering a number of factors.

lease our vacant space, including space that we develop.

resources to correct problems or find alternative sources for performing various functions.

Our top three customers leased approximately 5.5 million square feet of net rentable space as of December 31, 2020, representing approximately 18.5% of the total annualized rent generated by our properties.

Certain of our customer agreements may give the customer a right of first refusal to purchase certain properties if we propose to sell those properties to a third party or prohibit us from selling certain properties to a third party that is a competitor of the customer.

space or for rents to commence on this space, our financial condition, results of operations, cash flow, cash available for distribution and ability to satisfy our debt service obligations could be materially adversely affected.

| ​ | ​ | December 31, 2020 | |

| Chicago | | 8.8 | % |

| London, England | | 7.7 | % |

| Dallas | | 5.9 | % |

| Frankfurt, Germany | ​ | 5.6 | % |

| Amsterdam, Netherlands | | 4.4 | % |

| Singapore | | 2.8 | % |

| Phoenix | | 2.1 | % |

| Tokyo, Japan | | 1.9 | % |

| Other | | 18.8 | % |

To date, we have not observed any significant disruption to our supply chain or procurement process due to the COVID-19 pandemic.

In the event that the market price for energy decreases, we may be required to

We completed the Telx Acquisition in October 2015, the European Portfolio Acquisition in July 2016, the DFT Merger in September 2017 and the Interxion Combination in March 2020.

day operations of our business.

Additionally, our portfolio consisted of 291 data centers at December 31, 2020, including 43 data centers held as investments in unconsolidated joint ventures.

While we usually require the sellers to

financial and operating results may be adversely affected.

Discontinuation, reform or replacement of the London Interbank Offered Rate (LIBOR) and other benchmark rates, or uncertainty related to the potential for any of the foregoing, may adversely affect our business.

Certain of our variable rate debt, including our global revolving credit facility, uses LIBOR as a benchmark for establishing the interest rate.

The U.K. Financial Conduct Authority announced in 2017 that it intends to phase out LIBOR by the end of 2021.

In addition, other regulators have suggested reforming or replacing other benchmark rates.

Discontinuation, reform or replacement of LIBOR or any other benchmark rates may have an unpredictable impact on contractual mechanics in the credit markets or cause disruption to the broader financial markets.

Uncertainty as to the nature of such potential discontinuation, reform or replacement may negatively impact the cost of our variable rate debt.

We anticipate managing the transition to a preferred alternative rate using the language set out in our agreements and through potentially modifying our debt and derivative instruments.

However, future market conditions may not allow immediate implementation of desired modifications and we may incur significant associated costs in doing so.

operations, cash flow, cash available for distribution and ability to access capital necessary to meet our debt payments and other obligations.

Sanchack, our Executive Vice President, Operations.

improvements, and our insurance coverage may be insufficient to replicate the technology-related improvements made by such customers.

We cannot assure you that costs of investigation and remediation of environmental matters will

[removed: _The] [added: The] following discussion should be read in conjunction with the [removed: consolidated financial statements] [added: Consolidated Financial Statements] and notes thereto [removed: appearing elsewhere] [added: included] in [added: Item 8 of] this [removed: report.][added: report and the matters described under Item 1A.]

For a complete discussion of forward-looking statements, see the section in this report entitled “Forward-Looking Statements.” [removed: Certain risk factors may cause our actual results, performance or achievements to differ materially from those expressed or implied by the following discussion.]

[removed: _Business] [added: Business Overview] and [removed: strategy_.][added: Strategy]

We expect to accomplish our objectives by achieving superior risk-adjusted returns, prudently allocating capital, diversifying our product offerings, accelerating our global reach and [removed: scale] [added: scale,] and driving revenue growth and operating efficiencies.

A significant component of our current and future internal growth is anticipated through the development of our existing space held for development, acquisition of land for future [removed: development] [added: development,] and acquisition of new properties.

We expect to continue to acquire additional assets as part of our growth [added: strategy.]

[removed: We target a debt-to-Adjusted EBITDA ratio at or less than] 5.5x, fixed charge coverage of greater than three times, and floating rate debt at less than 20% of total outstanding debt.

[removed: _Revenue base_.][added: Revenue Base]

| [added: Region |] ​ | Data [removed: Center | ​] [added: Center Buildings] | Net [removed: Rentable] [added: Rentable Square Feet (1)] | [removed: ​] [added: Space Under Active Development (2)] | [removed: Active] [added: Space Held for Development (3)] | [added: Occupancy |] ​ | [added: ​ | Data Center Buildings | Net Rentable Square Feet (1) |] Space [added: Under Active Development (2) | Space] Held [removed: for] [added: for Development (3)] | [added: Occupancy | ​ |]

| [removed: Europe Total] [added: Europe] | [removed: 107] [added: ​] | [added: 107] | [removed: 7,654,259] [added: 7,549,209] | [added: 3,125,451] | [removed: 1,516,192] [added: 191,094] | [added: 74.6] | [removed: 256,398] [added: %] | [added: ​ | 107 | 7,654,259 | 1,516,192 | 256,398 | 78.7 | % |]

| [removed: Asia] [added: Asia] Pacific [removed: Total] | [removed: 13] [added: ​] | [added: 12] | [removed: 913,905] [added: 1,355,243] | [added: 806,252] | [removed: 1,330,123] [added: —] | [added: 76.2] | [removed: 284,751] [added: %] | [added: ​ | 13 | 913,905 | 1,330,123 | 284,751 | 89.0 | % |]

| Northern Virginia | [removed: 7] | [removed: | 1,250,419 | | — |] [added: 19.5] | [removed: —] [added: %] |

| Silicon Valley | [removed: 4] | [removed: | 326,305 | | — |] [added: 6.1] | [removed: —] [added: %] |

| New York | [removed: 1] | [removed: | 108,336 | | — |] [added: 6.2] | [removed: —] [added: %] |

| [removed: Total] [added: Total Portfolio] | [removed: 291] [added: ​] | [added: 287] | [removed: 35,876,316] [added: 35,630,828] | [added: 7,230,460] | [removed: 5,391,969] [added: 2,682,456] | [added: 83.6] | [added: % | ​ | 291 | 35,876,316 | 5,391,969 |] 2,290,810 | [added: 86.3 | % |]

| (1) | [removed: Current net] [added: Net] rentable square feet [removed: as of December 31, 2020, which] represents the current square feet under lease as specified in the applicable lease [removed: agreements] [added: agreement] plus management’s estimate of space available for lease based on engineering drawings. [removed: Includes] [added: The amount includes] customers’ proportional share of common areas [removed: and] [added: but] excludes space [removed: under active development and space] held for [added: the intent of or under active] development. |

| (2) | Space under active development includes current base building and data center projects in [removed: progress.] [added: progress, and excludes space held for development. For additional information on the current and future investment for space under active development, see “—Liquidity and Capital Resources of the Operating Partnership—Construction”.] |

| (3) | Space held for development includes space held for future data center development, and excludes space under active development. [added: For additional information on the current investment for space held for development, see “—Liquidity and Capital Resources of the Operating Partnership—Construction”.] |

Due to the capital-intensive and long-term nature of the operations [removed: being supported,] [added: we support,] our lease terms [added: with customers] are generally longer than standard commercial leases.

As of December 31, [removed: 2020,] [added: 2021,] our average remaining lease term [removed: is] [added: was] approximately five years.

[removed: _Scheduled lease expirations._] Our ability to re-lease expiring space at rental rates equal to or in excess of current rental rates will impact our results of operations.

The [removed: following] [added: subsequent] table summarizes our leasing activity in the year ended December 31, [removed: 2020:][added: 2021:]

| (4) | Commencement dates for the leases signed range from [removed: 2020] [added: 2021] to [removed: 2021.] [added: 2022.] |

We continue to see strong demand in most of our key metropolitan areas for data center space and, subject to the supply of available data center space in these metropolitan areas, we expect [removed: the] [added: average aggregate] rental rates [removed: we are likely to achieve] on re-leased or renewed data center [removed: space] leases for [removed: 2021] [added: 2022] expirations [removed: on an average aggregate basis will] [added: to] generally be consistent with the rates currently being paid for the same space on a GAAP basis and on a cash basis.

Further, re-leased/renewed rental rates in a particular metropolitan area may not be consistent with rental rates across our portfolio as a whole and may fluctuate from one period to another due to a number of factors, including local economic conditions, local supply and demand for data center space, competition [removed: from other data center developers or operators, the condition of the property and whether the property, or space within the property, has been developed.]

[removed: _Geographic concentration._] We depend on the market for data centers in specific geographic regions and significant changes in these regional or metropolitan areas can impact our future results.

| [added: ​ |] ​ | [added: As of December 31, 2021 | | | | | |] ​ | [removed: December] [added: As of December] 31, 2020 | | [added: | | | |]

| [removed: ​] [added: Metropolitan Area] | ​ | total [removed: annualized] [added: annualized rent (1)] | |

| Sao [removed: Paulo, Brazil] [added: Paulo] | | [removed: 3.5] [added: 4.1] | % |

| [removed: Paris, France] [added: Paris] | | 2.2 | % |

| (1) | Annualized rent is monthly contractual rent (defined as cash base rent before abatements) under existing leases as of [removed: December 31, 2020] [added: the end of the period presented,] multiplied by 12. Includes consolidated portfolio and unconsolidated [removed: joint ventures] [added: entities] at the [removed: joint ventures’] [added: entities’] 100% ownership level. The aggregate amount of abatements for the year ended December 31, [removed: 2020] [added: 2021] was approximately [removed: $74.4] [added: $108.7] million. |

[removed: _Operating expenses._ Our operating] [added: Operating] expenses [removed: generally] [added: primarily] consist of utilities, property and ad valorem taxes, property management fees, insurance and site maintenance costs, [removed: as well as] [added: and] rental expenses on our ground and building leases.

[removed: In particular, our] [added: Our] buildings require significant power to support [removed: the] data center operations [removed: contained in them.][added: and the cost of electric power and other utilities is a significant component of operating expenses.]

Many of our leases contain provisions under which [removed: the] tenants reimburse us for all or a portion of property operating expenses and real estate taxes incurred by us.

[removed: We have provided a summary of our significant accounting policies in Item 8, Note 2] “Summary of Significant Accounting Policies” [removed: in] [added: of] the [removed: Notes to] Consolidated Financial Statements.

We [removed: specifically analyze] [added: estimate the probability of collection of lease payments based on] customer creditworthiness, [added: outstanding] accounts receivable [added: balances,] and historical bad debts [removed: and] [added: – as well as] current economic [removed: trends when evaluating the probability of collection.][added: trends.]

If collection of substantially all lease payments over the [removed: term of a] lease [added: term] is [removed: deemed] not probable, rental revenue [removed: would be] [added: is] recognized when payment is [removed: received] [added: received,] and [removed: revenue would not be recognized on] [added: we record] a [removed: straight-line basis.][added: full valuation allowance on the balance of any rent receivable, less the balance of any security deposits or letters of credit.]

[removed: In the event that we subsequently determine the] [added: If] collection is [added: subsequently determined to be] probable, [removed: we] [added: we: 1)] resume recognizing rental revenue on a straight-line [removed: basis and] [added: basis, 2)] record [removed: the] incremental revenue such that the cumulative [removed: rental revenue] [added: amount recognized] is equal to the amount [removed: of revenue] that would have been recorded on a straight-line basis since [removed: the] inception of the [removed: lease.][added: lease, and 3) reverse the allowance for bad debt recorded on outstanding receivables.]

If our future undiscounted net cash flow evaluation indicates [removed: that] we are unable to recover the carrying value of a property or asset group, [added: we record] an impairment loss [removed: is recorded] to the extent [removed: that] the carrying value [removed: exceeds the estimated fair value] of the property or [removed: fair value of the properties within the] asset [removed: group.][added: group exceeds fair value.]

[removed: Recently Issued] [added: New] Accounting Pronouncements

Risk Factors.

A discussion regarding our financial condition and results of operations for 2021 as compared to 2020 is presented herein.

Information on 2019 is presented in graphs and other tables only to show year-over-year trends in our results of operations and operating metrics.

Our financial condition for 2019 and results of operations for 2019 – and also 2019 as compared to 2020 – can be found under Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on form 10-K for the fiscal year ended 2020, filed with the SEC on March 1, 2021.

Digital Realty Trust, Inc., through its controlling interest in Digital Realty Trust, L.P. and its subsidiaries, delivers comprehensive space, power, and interconnection solutions that enable its customers and partners to connect with each other and service their own customers on a global technology and real estate platform.

We are a leading global provider of data center, colocation and interconnection solutions for customers across a variety of industry verticals.

Digital Realty Trust, Inc. operates as a REIT for federal income tax purposes, and our Operating Partnership is the entity through which we conduct our business and own our assets.

Our primary business objectives are to maximize:

| | (i) | sustainable long-term growth in earnings and funds from operations per share and unit; |

| | (ii) | cash flow and returns to our stockholders and our Operating Partnership’s unitholders through the payment of distributions; and |

| | (iii) | return on invested capital. |

| --- | --- | --- |

We target a debt-to-Adjusted EBITDA ratio at or less than

Summary of 2021 Significant Activities

_We completed the following significant activities in 2021 as described in the Notes to the Consolidated Financial Statements:_

| | ● | In January, we issued and sold €1.0 billion aggregate principal amount of 0.625% Guaranteed Notes due 2031 (the “2031 Notes”). The 2031 Notes are senior unsecured obligations of Digital Intrepid Holding B.V. (a wholly-owned subsidiary of the OP) and are fully and unconditionally guaranteed by the Parent and the OP. Net proceeds from the offering were approximately €988.3 million (approximately $1,206.4 million based on the exchange rate on the issuance date of January 12, 2021) after deducting managers’ discounts and estimated offering expenses. |

| --- | --- | --- |

| | ● | In February, we redeemed €350 million of 2.750% notes due in 2023. As part of this redemption, we recorded a $17.5 million loss on extinguishment of debt. |

| --- | --- | --- |

| | ● | In March, we sold a portfolio of 11 data centers in Europe to Ascendas Reit, a CapitaLand sponsored REIT, for total consideration of approximately $680.0 million. The total gain recorded as a result of this sale was approximately $332.0 million. |

| --- | --- | --- |

| | ● | In May, we redeemed all of the Parent’s outstanding Series C cumulative redeemable perpetual preferred stock for $25.21 per share, or a redemption price of $25.00 per share, plus accrued and unpaid dividends up to but not including the redemption date (the “Series C Preferred Share Redemption”). The transaction resulted in a gain on redemption of $18.0 million. This amount is reflected as gain on redemption of preferred stock which increased net income available to common stockholders. |

| --- | --- | --- |

| | ● | In July, we issued and sold CHF 275 million aggregate principal amount of 0.20% guaranteed notes due 2026 and CHF 270 million aggregate principal amount of 0.55% guaranteed notes due 2029 (collectively referred to as, “the Swiss Franc Notes”). Net proceeds from the offering were approximately CHF 542.3 million (approximately $591 million based on the exchange rate on the issuance date of July 15, 2021). The net proceeds are intended to finance or refinance, in whole or in part, recently completed or future green building, energy and resource efficiency and renewable energy projects. |

| --- | --- | --- |

| | ● | In August, an existing unconsolidated joint venture between the Company and PGIM Real Estate (the “PGIM Joint Venture”) completed the sale of a portfolio consisting of 10 data centers in North America for $581 million – which resulted in a gain on sale of assets for the joint venture. Our portion of the gain was $64 million and included as a component of Equity in Unconsolidated Entities in our consolidated income statements. In connection with completion of the sale, we also received a $19 million promote fee related to the partnership exceeding certain investor return thresholds over the life of the partnership. The amount received is included in fee income and other in our consolidated income statements. |

| --- | --- | --- |

| | ● | In September, we completed an underwritten public offering of 6,250,000 shares of the Parent’s common stock, all of which were offered in connection with forward sale agreements we entered into with certain financial institutions acting as forward purchasers. The forward purchasers borrowed and sold an aggregate of 6,250,000 shares of common stock in the public offering. We did not receive any proceeds from the sale of our common stock by the forward purchaser. We expect to receive net proceeds of approximately $1.0 billion (net of fees and estimated expenses) upon full physical settlement of the forward sale agreements (for which the timing is fully determined at our option and is expected to be no later than March 13, 2023). |

| --- | --- | --- |

| | ● | In November, we refinanced our global revolving credit facility and Yen revolving credit facility (collectively referred to as the “global revolving credit facilities”). The global revolving credit facilities provide for borrowings of up to $3.3 billion (including approximately $0.3 billion available to be drawn on the Yen revolving credit facility). The global revolving credit facility provides for borrowings in a variety of currencies and can be increased by an additional $1.5 billion, subject to receipt of lender commitments and other conditions precedent. Both facilities mature on January 24, 2026, with two six-month extension options available. These facilities also feature a sustainability-linked pricing component, with pricing subject to adjustment based on annual performance targets, further demonstrating the Company's continued leadership and commitment to sustainable business practices. |

| --- | --- | --- |

| | ● | In December, we: |

| --- | --- | --- |

| | o | completed the listing of Digital Core REIT as a standalone Singapore real estate investment trust publicly traded on the Singapore Exchange. Digital Core REIT and its subsidiaries are hereafter referred to as the “SREIT”. In connection with the listing, we contributed a portfolio of 10 operating data center properties valued at $1.4 billion to the SREIT in exchange for $919 million cash and an initial retained investment of approximately 39.4% in Digital Core REIT as well as a 10% direct interest in the underlying operating properties of the SREIT. As part of this transaction, we recognized a gain on sale of assets of approximately $1.0 billion; and |

| --- | --- | --- |

| | o | entered into a definitive agreement to acquire approximately 55% of the total equity interests in Teraco, Africa’s leading carrier-neutral colocation provider. The remaining 45% will be held by a consortium of existing investors. The transaction values Teraco at approximately $3.5 billion. Close of the transaction is dependent upon customary closing conditions. |

| --- | --- | --- |

The majority of our revenue consists of rental income generated by the data centers in our portfolio.

Our ability to generate and grow revenue depends on several factors, including our ability to maintain or improve occupancy rates.

For a discussion of such risk factors, see the sections in this report entitled “Risk Factors” and “Forward-Looking Statements.”_

Occupancy percentages included in the following discussion, for some of our properties, are calculated based on factors in addition to contractually leased square feet, including available power, required support space and common area.

Overview

_Our Company_.

Digital Realty Trust, Inc. completed its initial public offering of common stock, or our IPO, on November 3, 2004.

We believe that we have operated in a manner that has enabled us to qualify, and have elected to be treated, as a REIT under Sections 856 through 860 of the Code.

Our Company was formed on March 9, 2004.

During the period from our formation until we commenced operations in connection with the completion of our IPO, we did not have any corporate activity other than the issuance of shares of Digital Realty Trust, Inc. common stock in connection with the initial capitalization of the Company.

Our Operating Partnership was formed on July 21, 2004.

Our primary business objectives are to maximize: (i) sustainable long-term growth in earnings and funds from operations per share and unit, (ii) cash flow and returns to our stockholders and our operating partnership’s unitholders through the payment of distributions and (iii) return on invested capital.

We plan to focus on our core business of investing in and developing and operating data centers.

As of December 31, 2020, our portfolio included 291 data centers, including 43 data centers held as investments in unconsolidated joint ventures, with approximately 43.6 million rentable square feet including approximately 5.4 million square feet of space under active development and approximately 2.3 million square feet of space held for development.

The 43 data centers held as investments in unconsolidated joint ventures have an aggregate of approximately 4.5 million rentable square feet.

The 34 parcels of developable land we own as of December 31, 2020 comprised approximately 927 acres.

At December 31, 2020, excluding unconsolidated joint ventures, approximately 4.9 million square feet was under construction for Turn-Key Flex® and Powered Base Building® products, all of which are expected to be income producing on or after completion, in seven U.S. metropolitan areas, nine European metropolitan areas, four Asian metropolitan areas, one Australian metropolitan area, one African metropolitan area and one Canadian metropolitan area, consisting of approximately 2.3 million square feet of base building construction and 2.6 million square feet of data center construction.

[Index to Financial Statements](#INDEX_423931)

strategy.

As of December 31, 2020, our portfolio included 291 data centers, including 43 data centers held as investments in unconsolidated joint ventures.

Our global portfolio includes 141 data centers located in North America, with 107 located in Europe, 22 in Latin America, 12 in Asia, six in Australia and three in Africa.

The following table presents an overview of our portfolio of data centers, including the 43 data centers held as investments in unconsolidated joint ventures, and developable land, based on information as of December 31, 2020.

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- | --- |

| ​ | ​ | | ​ | | Space Under | | ​ |

| Metropolitan Area | Buildings | ​ | Square Feet (1) | ​ | Development (2) | ​ | Development (3) |

| North America | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| Northern Virginia | 24 | | 5,721,264 | | 699,908 | | 78,538 |

| Chicago | 10 | | 3,427,367 | | — | | 148,101 |

| New York | 13 | | 2,050,605 | | 233,807 | | 99,955 |

| Silicon Valley | 20 | | 2,251,021 | | 65,594 | | — |

| Dallas | 21 | | 3,530,749 | | 143,051 | | 28,094 |

| Phoenix | 3 | | 795,687 | | — | | 227,274 |

| San Francisco | 4 | | 824,972 | | 23,321 | | — |

| Atlanta | 4 | | 525,414 | | — | | 313,581 |

| Los Angeles | 4 | | 798,571 | | 19,908 | | — |

| Seattle | 1 | ​ | 400,369 | | — | | — |

| Toronto, Canada | 2 | ​ | 316,170 | | 499,839 | | — |

| Portland | 2 | | 264,973 | | 336,463 | | — |

| Boston | 4 | ​ | 467,519 | | — | | 50,649 |

| Houston | 6 | | 392,816 | | — | | 13,969 |

| Miami | 2 | | 226,314 | | — | | — |

As of December 31, [removed: 2020,] [added: 2021,] our consolidated debt was as follows (in millions):

| Fixed rate debt | ​ | $ | [removed: 11,864.8] [added: 12,797.8] | ​ | $ | [removed: 13,131.5] [added: 13,383.5] |

| Variable rate debt subject to interest rate swaps | ​ | | [removed: 181.4] [added: —] | ​ | | [removed: 181.4] [added: —] |

| Total fixed rate debt (including interest rate swaps) | ​ | | [removed: 12,046.2] [added: 12,797.8] | ​ | | [removed: 13,312.9] [added: 13,383.5] |

| Variable rate debt | ​ | | [removed: 1,366.8] [added: 764.4] | ​ | | [removed: 1,366.8] [added: 764.4] |

| Total outstanding debt | ​ | $ | [removed: 13,413.0] [added: 13,562.2] | ​ | $ | [removed: 14,679.7] [added: 14,147.9] |

Interest rate derivatives and their fair values as of December 31, [removed: 2020] [added: 2021] and December 31, [removed: 2018] [added: 2020] were as follows (in thousands):

| [removed: 2020] [added: 2021] | | | [removed: 2019] [added: 2020] | | | Derivative | | Rate | | Date | | Date | | [removed: 2020] [added: 2021] | | | [removed: 2019] [added: 2020] | |

| [removed: $] [added: ​] | — | ​ | [removed: $] | [removed: 29,000] [added: 77,352] | [removed: (1)​] [added: (2)​] | Swap | | [removed: 1.016] [added: 0.779] | ​ | [removed: Apr 6,] [added: Jan 15,] 2016 | ​ | Jan [removed: 6,] [added: 15,] 2021 | ​ | [removed: $] | — | ​ | [removed: $] | [removed: 175] [added: (9)] |

| [removed: ​] [added: $] | [removed: 104,000] [added: —] | [removed: (1)​] [added: ​] | [added: $] | [removed: 300,000] [added: 104,000] | (1)​ | Swap | | 1.435 | ​ | Jan 15, 2016 | ​ | Jan 15, 2023 | ​ | [added: $] | [removed: (2,773)] [added: —] | ​ | [added: $] | [removed: 945] [added: (2,773)] |

| $ | [removed: 181,352] [added: —] | ​ | $ | [removed: 479,825] [added: 181,352] | | | | | ​ | | ​ | | ​ | $ | [removed: (2,782)] [added: —] | ​ | $ | [removed: 2,396] [added: (2,782)] |

[removed: | (1) | Represents] [added: (1)Represents] debt which bears interest based on one-month U.S. LIBOR. [removed: |]

[removed: | (2) | Represents debt which bears interest based on one-month CDOR.] Translation to U.S. dollars is based on exchange rates of $0.79 to 1.00 CAD as of December 31, [removed: 2020 and $0.77 to 1.00 CAD as of December 31, 2019. |][added: 2020.]

The following table shows the effects if assumed changes in interest rates occurred, based on fair values and interest expense as of December 31, [removed: 2020:][added: 2021:]

| Increase in fair value of interest rate swaps following an assumed 10% increase in interest rates | ​ | $ | [removed: 0.1] [added: 0.0] |

| Decrease in fair value of interest rate swaps following an assumed 10% decrease in interest rates | ​ | | [removed: (0.1)] [added: (0.0)] |

| Increase in annual interest expense on our debt that is variable rate and not subject to swapped interest following a 10% increase in interest rates | ​ | | [removed: 0.4] [added: 0.2] |

| Decrease in annual interest expense on our debt that is variable rate and not subject to swapped interest following a 10% decrease in interest rates | ​ | | [removed: (0.4)] [added: (0.2)] |

| Increase in fair value of fixed rate debt following a 10% decrease in interest rates | ​ | | [removed: 13.1] [added: 17.6] |

| Decrease in fair value of fixed rate debt following a 10% increase in interest rates | ​ | | [removed: (28.2)] [added: (24.5)] |

[removed: As such, we] [added: We] are subject to risk from the effects of exchange rate movements of [added: a variety of] foreign currencies, which may affect future costs and cash flows.

Our primary currency exposures are to the [added: Euro, Japanese yen,] British pound [removed: sterling, Euro] [added: sterling] and [removed: the] Singapore dollar.

As a result of the Ascenty [removed: joint venture] [added: entity] and deconsolidation of Ascenty, our exposure to foreign exchange risk related to the Brazilian real is limited to the impact that currency has on our share of the Ascenty [added: entity’s operations and financial position.]

[removed: We attempt to mitigate a portion of the risk of currency fluctuation by financing our investments in the local currency denominations and] [added: In addition,] we may also hedge well-defined transactional exposures with foreign currency forwards or options, although there can be no assurances that these will be effective.

As a result, changes in the relation of any such foreign currency to U.S. [removed: dollars] [added: dollar] may affect our revenues, operating margins and distributions and may also affect the book value of our assets and the amount of stockholders’ equity.

(2)Represents debt which bears interest based on one-month CDOR.

We attempt to mitigate a portion of the risk of currency fluctuations by financing our investments in local currency denominations in order to reduce our exposure to any foreign currency transaction gains or losses resulting from transactions entered into in currencies other than the functional currencies of the associated entities.

[Index to Financial Statements](#INDEX_423931)

| ​ | — | ​ | | 75,000 | (1)​ | Swap | | 1.164 | ​ | Jan 15, 2016 | ​ | Jan 15, 2021 | ​ | | — | ​ | | 345 |

| ​ | 77,352 | (2)​ | | 75,825 | (2)​ | Swap | | 0.779 | ​ | Jan 15, 2016 | ​ | Jan 15, 2021 | ​ | | (9) | ​ | | 931 |

| --- | --- |

For the years ended December 31, 2020, 2019 and 2018, we had foreign operations, including through our investments in unconsolidated joint ventures, in the United Kingdom, Ireland, France, the Netherlands, Germany, Switzerland, Canada, Singapore, Australia, Japan, Hong Kong, South Korea and Brazil and we have added Austria, Belgium, Denmark, Spain, Sweden and Kenya as part of the Interxion Combination, which closed in March 2020.

Our foreign operations are conducted in the British pound sterling, Euro, Canadian dollar, Brazilian real, Singapore dollar, Australian dollar, Japanese Yen, Hong Kong dollar, South Korean won, Swiss franc, Danish krone, Swedish krona and the Kenyan shilling.

joint venture’s operations and financial position.

For the years ended December 31, 2020, 2019 and 2018, operating revenues from properties outside the United States contributed $1,301.8 million, $627.4 million and $564.4 million, respectively, which represented 33.3%, 19.5% and 18.5% of our operating revenues, respectively.

Net investment in properties outside the United States was $9.3 billion and $3.7 billion as of December 31, 2020 and December 31, 2019, respectively.

Net assets in foreign operations were approximately $5.7 billion and $(1.4) billion as of December 31, 2020 and December 31, 2019, respectively.

Other

Certain operating costs incurred by us, such as electricity, are subject to price fluctuations caused by the volatility of underlying commodity prices.

In 2020, we added 154 megawatts of renewable energy contracts across our U.S. portfolio, bringing the total executed under long-term contracts to 556 megawatts of renewable energy.

In 2019, we entered into a power purchase agreement to secure the renewable energy attributes from a solar farm in Virginia.

In 2018, we entered into power purchase agreements to secure the renewable energy attributes from a solar farm in North Carolina to support the renewable energy needs of a customer in Virginia.

Digital Realty Trust, [removed: Inc.,] [added: Inc. (the “Parent”),] through its controlling interest in Digital Realty Trust, L.P. (the [removed: Operating Partnership)] [added: “Operating Partnership” or the “OP”)] and the subsidiaries of the Operating Partnership, (collectively, [removed: we, our, us] [added: “we”, “our”, “us”] or the [removed: Company)] [added: “Company”)] is a leading global provider of data center, colocation and interconnection solutions for customers across a variety of industry [removed: verticals ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products.][added: verticals.]

[removed: Digital Realty Trust, L.P., a Maryland limited partnership,] [added: The OP] is the entity through which [removed: Digital Realty Trust, Inc., a Maryland corporation,] [added: the Parent] conducts its business of owning, acquiring, developing and operating data centers.

[removed: Digital Realty Trust, Inc.] [added: The Parent] operates as a REIT for federal income tax purposes.

As of December 31, [removed: 2020,] [added: 2021,] our portfolio consisted of [removed: 291] [added: 287] data centers (including [removed: 43] [added: 50] data centers held as investments in unconsolidated [removed: joint ventures),] [added: entities),] of which [removed: 139] [added: 127] are located in the United States, 107 are located in Europe, [removed: 22] [added: 27] are located in Latin America, [removed: 12] [added: 13] are located in Asia, six are located in Australia, [removed: three] [added: four] are located in Africa and [removed: two] [added: three] are located in Canada.

[removed: Digital Realty Trust, Inc.] [added: The Parent] was incorporated in the state of Maryland on March 9, 2004.

[removed: Digital Realty Trust, L.P.] [added: The OP] was organized [added: as a limited partnership] in the state of Maryland on July 21, 2004.

On October 29, 2019, Digital Realty Trust, Inc., Digital Intrepid Holding B.V., an indirect subsidiary of Digital Realty Trust, [removed: Inc.,] [added: Inc. (the “Buyer”),] and Interxion Holding N.V., which we refer to as Interxion, entered into a purchase agreement, or the Purchase Agreement, pursuant to which, subject to the terms and conditions of the Purchase Agreement, the Buyer commenced an exchange offer to purchase all of the outstanding ordinary shares of Interxion in exchange for shares of common stock of Digital Realty Trust, [removed: Inc..][added: Inc. We refer to the transactions contemplated by the Purchase Agreement as the Interxion Combination.]

The Interxion Combination [removed: has] expanded the combined company’s presence across Europe and Africa.

As of March 27, 2019, we deconsolidated Ascenty and recorded our retained interest as an investment in unconsolidated [removed: joint ventures] [added: entities] due to shared control with Brookfield.

[removed: Further, we] [added: We] believe that enterprise data growth is accelerating due to the growing digital economy and emerging technological advances.

As this [removed: data] mass [removed: builds and] [added: of data] continues to [added: grow, it needs to] be analyzed and [removed: processed,] [added: processed: a task which] we believe [removed: it becomes] [added: is becoming] increasingly challenging to replicate and [removed: relocate, a phenomenon called increasing data gravity.][added: relocate.]

We believe that enterprise [removed: decision makers] [added: decisionmakers] will need to increasingly consider the impact of how [removed: data gravity] [added: Data Gravity] impacts their enterprise IT architectures and, accordingly, we have developed the Data Gravity [removed: Index™.][added: Index™: a global forecast that measures the intensity and gravitational force of enterprise data growth.]

As [removed: a] [added: the largest] global [removed: infrastructure] provider [removed: for this growing digital economy,] [added: of cloud- and carrier-neutral data center, colocation and interconnection solutions,] we believe the data center industry is poised for sustainable growth.

We believe [removed: that] data centers will continue to play a critical role in the digital economy and enabling business transformation strategies.

We believe cloud solutions [removed: and, in particular,] [added: and] hybrid cloud solutions will remain significant drivers of demand for data center infrastructure.

The hybrid cloud, which combines public and private cloud solutions, has gained traction because it enables corporate enterprises to achieve efficiencies and contain [removed: costs] [added: costs,] as well as scale and secure their most sensitive information.

In addition, the leading cloud service providers are generally mature, well-capitalized technology companies, and cloud platforms are among [removed: their fastest growing] [added: the fastest-growing] business segments.

Data center providers that can solve global coverage, capacity and [removed: communities of interest] connectivity needs, and coordinate and aggregate diverse customer and application demand, are poised to benefit from these cloud-specific industry drivers.

We solve global coverage, [removed: capacity,] [added: capacity] and [removed: communities of interest] connectivity needs for companies of all sizes, including the world’s leading enterprises and services providers, through PlatformDIGITAL®, [removed: our fit-for-purpose] [added: a global data center] platform [removed: that simplifies access] [added: for scaling digital business which enables customers] to [added: deploy their critical infrastructure with a global] data center [removed: capacity and][added: provider.]

Our global data center footprint gives customers access to the connected [added: data] communities that matter to them with [removed: 291] [added: 287] facilities in [removed: 49] [added: nearly 50] metros across [removed: 24] [added: 25] countries on six continents.

In addition, in areas where high data center construction and operating costs and long time-to-market prohibit many of our customers from building their own data centers, our global footprint and scale allow us to [removed: quickly and efficiently] meet our customers' [removed: needs.][added: needs quickly and efficiently.]

[added: Our internet] gateway data centers are highly [removed: interconnected,] [added: connected,] network-dense facilities that serve as hubs for internet and data communications within and between major metropolitan areas.

We believe internet gateways are extremely [removed: valuable] [added: valuable,] and a high-quality, highly interconnected global portfolio such as ours could not be easily replicated today on a cost-competitive basis.

[removed: ][added: ]

[removed: Recent acquisitions] [added: Through strategic investments, we] have expanded our footprint into Latin America, enhanced our data center offerings in strategic and complementary U.S. metropolitan areas, established our colocation and interconnection platform in the U.S. and expanded our colocation and interconnection platform in Europe and Africa, [added: with] each transaction enhancing our presence in top-tier locations throughout North America, Europe, Latin America and Africa.

Further, the network density, interconnection infrastructure and connectivity-centric customers in certain of our data [added: centers has led to the organic formation of densely connected data communities that are difficult for competitors to replicate and deliver added value to our customers.]

Our portfolio contains a total of approximately [removed: 43.6] [added: 45.5] million square feet, including approximately [removed: 5.4] [added: 7.2] million square feet of space under active development and approximately [removed: 2.3] [added: 2.7] million square feet of space held for future development.

The [removed: 43] [added: 50] data centers held as investments in unconsolidated [removed: joint ventures] [added: entities] have an aggregate of approximately [removed: 4.7] [added: 35.6] million rentable square feet.

The [removed: 34] [added: 27] parcels of developable land we own comprise approximately [removed: 927] [added: 849] acres.

As of December 31, [removed: 2020,] [added: 2021,] our portfolio, including the [removed: 43] [added: 50] data centers held as investments in unconsolidated [removed: joint ventures] [added: entities] and excluding space under active development and space held for future development, was approximately [removed: 86.3%] [added: 83.6%] leased.

From time to time we may look to sell individual assets or portfolios of assets that we do not consider to be core to our [removed: ongoing] business [added: and growth] strategy.

Our data centers and comprehensive suite of product offerings are scalable to meet our customers’ needs, from a single rack or cabinet up to multi-megawatt deployments, along with connectivity, [removed: interconnection] [added: connected data communities] and solutions to support their hybrid cloud architecture requirements.

[removed: PlatformDIGITAL] [added: PlatformDIGITAL®] Solution Model. The PlatformDIGITAL® solution model is based on our Pervasive [removed: Datacenter™ architecture] [added: Data Center Architecture (PDx™)] strategy, which brings users, networks, clouds, controls and systems to the data, removing barriers, creating centers of data exchange to accommodate distributed workflows and scaling digital business.

| Data Hub [removed: ​] | | Localizes data aggregation, staging, analytics, streaming and data management to optimize data exchange |

| SX Fabric | [removed: ​] | Adds SDN overlay to service chain multi-cloud and B2B application ecosystems Connects hubs across metros and regions to enable secure and performant distributed workflows |

| Scale & Hyperscale Powered Base Building® Turn-Key Flex® (> 1 MW) [removed: ​] | | Scale from medium [removed: (300+ kW)] to very large deployments Solution can be executed in weeks Contract length generally 5-10+ years Customized data center environment for specific deployment needs |

We believe our colocation and Turn-Key Flex® facilities are effective solutions for customers who may lack the bandwidth, capital budget, [removed: expertise] [added: expertise,] or desire to provide their own extensive data center infrastructure, [removed: management] [added: management,] and security.

We believe our offerings are also well-suited for those customers who seek to efficiently exchange data with others in our [added: connected data] communities, lowering their costs and creating value for their business.

For customers who possess the ability to build and operate their own facility, our Powered Base Building® solution provides the physical location, requisite [removed: power] [added: power,] and network access necessary to support a state-of-the-art data center.

Through [removed: our recent] investments and strategic partnerships, we have significantly expanded our capabilities as a leading provider of interconnection and cloud-enablement services globally.

This phenomenon is called Data Gravity.

At December 31, 2021, we owned or had investments in properties, on a wholly-owned basis or through unconsolidated entities, in the following geographies:

| | | |

| Internet Exchange | | A common peering platform allowing participants to exchange network traffic with multiple ISPs, CDNs and other parties over a single port interface |

| Service Exchange | | SDN Global interconnection solution enabling customers to establish direct, private connections to multiple Cloud Service Providers, Network Providers and other participants of the platform from a single interface |

| IP Bandwidth | | Dedicated Internet Access using blend of ISPs. Provides customer with highly resilient customer dedicated connections including Fixed and Burstable Service options |

portfolio as of December 31, 2021.

Our largest customer, accounted for approximately 10.0% of our aggregate annualized recurring revenue as of December 31, 2021.

| Equinix | ​ | Facebook, Inc. | ​ | AT&T |

| IBM | ​ | JPMorgan Chase & Co. | ​ | Lumen Technologies, Inc. |

See "We and our customers may experience supply chain or procurement disruptions, or increased supply chain costs, which may lead to delays." in Item 1A.

Superior Risk-Adjusted Returns.

Prudently Allocate Capital.

Accelerate Global Reach and Scale. We have strategically pursued international expansion since our IPO in 2004 and now operate across six continents.

_Leverage Strong Industry Relationships._ Our global market leadership position and strong industry relationships provide us with a unique vantage point to detect and capitalize on secular trends as they emerge globally.

We focus our industry relationship efforts towards market sensing, market shaping and helping to set open standards that benefit companies of all types to derive value from digital infrastructure and multi-tenant datacenters.

Industry collaboration includes engagements with industry associations, IT industry analysts, venture capitalists, technology incubators, technology service providers, telecommunications providers, systems integrators and large multi-national companies across segments including manufacturing, transportation & logistics, financial services, healthcare, pharmaceutical and digital media.

These relationships help us forge new product capabilities, inform investment decisions, develop new routes to market and create differentiated value for customers and drive long-term growth and yield for shareholders.

Sustainability.

| | a | | | |

| 87% | 8,443,670 | 97% | 38% | 1% |

| | | | |

| 6675 NE 62nd St | Hillsboro | LEED | Silver |

| 11 Hanbury St (LON3) | London | BREEAM (2) | Excellent |

| 11 Hanbury St (LON3) | London | BREEAM | Excellent |

feet.

We have a target to reduce global colocation power usage effectiveness (PUE) 10% by 2022 from a 2017 baseline and we surpassed this goal in 2020 by achieving an 11% reduction.

We also had a target to reduce PUE for our Interxion portfolio 5% by 2020 from a 2017 baseline and we surpassed this goal by achieving a 6% reduction in 2020.

These goals reflect targets established prior to the Digital Realty and Interxion combination.

Additionally, we are a signatory to the EU Climate Neutral Data Centre Pact, a Self-Regulatory Initiative committing to climate neutrality by 2030 and setting additional goals around energy efficiency, carbon-free energy sourcing, water conservation and waste heat recycling.

| ​ ​ | | | | |

| | | | | |

| 80% | 32% | 5,385 | 50% | \-6% |

| | (4) | Scope of data is aligned with the 2020 GRESB Real Estate Assessment Reference Guide (“Like-for-like Comparison”). |

Our Global Water Strategy addresses the strategic role that water plays in our operations, identifies regions where water quality and scarcity pose the greatest interruption risk to our business, and creates a pipeline of projects and opportunities to advance our position with respect to water conservation, resiliency, and redundancy in our operations.

| | | | | |

| --- | --- | --- | --- | --- |

| | | | | |

Risk Factors for further discussion.

_Climate change legislation._ In June 2009, the U.S. House of Representatives approved comprehensive clean energy and climate change legislation intended to cut greenhouse gas, or GHG, emissions, via a cap-and-trade program.

We refer to the transactions contemplated by the Purchase Agreement as the Interxion Combination.

On September 14, 2017, we completed the acquisition of DuPont Fabros Technology, Inc., or DFT, in an all-stock merger, which we refer to as the DFT Merger, for equity consideration of approximately $6.2 billion.

We believe this transaction expanded our reach with a complementary portfolio in top U.S. metropolitan areas while enhancing our ability to meet the growing demand for hyper-scale and public cloud solutions and solidifying our blue-chip customer base.

The Data Gravity Index™ is a global forecast that measures the intensity and gravitational force of enterprise data growth.

interconnection through a single data center provider with tailored infrastructure deployments and controls.

Digital Realty Pillars

We are one of the leading data center providers in the world.

Our business and operations are aligned with the following key pillars:

​

Resilient Foundations

Our record of resiliency, 14 consecutive years of “five-nines” (99.999%) uptime for facilities owned and operated by us, and our award-winning sustainability program ensure our customers’ high-performance networks are effective and environmentally conscious.

We design, own and manage data centers and are trusted with the critical IT infrastructures of companies globally, from small businesses to large multinational enterprises.

We provide the critical digital foundations for our customers to store, manage, and connect their data when, where and how they need it.

Global, Local and Interconnected

Our data centers are hyper-connected hubs, strategically located in 49 key metro areas across the world.

Our global strength is matched by the expertise of our local teams on the ground.

Our data centers provide high-performance access to one of the largest communities of interest of interconnected networks, critical data center and cloud services, customers and partners.

Our global footprint and network enable our customers to connect with other parties in the way they need.

Trusted Partner

We are a trusted partner for our customers, which include many of the most digitally ambitious companies in the world, helping to safeguard their digital capital and drive their growth.

Whether designing and delivering dedicated data center facilities or solving cloud connectivity issues, our dedicated team of technical experts strives to ensure customer success through consistency in operations, customer care and ease of doing business.

Our internet

Our global platform provides access to a network of 291 state-of-the-art, interconnected data centers, concentrated in 49 major metropolitan areas across 24 countries on six continents.

Northern Virginia represented 19% of total revenue for the year ended December 31, 2020, followed by Chicago with 11% of total revenue.

Through strategic investments, we have grown our presence in key metropolitan areas throughout North America, Europe, Latin America, Asia, Australia and Africa.

centers has led to the organic formation of densely interconnected communities of interest that are difficult for competitors to replicate and deliver added value to our customers.

| --- | --- | --- |

| Internet Exchange | | Peering with major carrier, content, and wireless networks on a single, high-availability service platform enabling broad distribution of data traffic |

| Service Exchange | | Access to multiple connections through multiple service providers all from one portal enabling simplified, direct, private, and secure connections |

| IP Bandwidth | | Blended bandwidth upstream connectivity with routing to provide a fast, resilient, dedicated Internet connection |

| Fortune 50 Software Company | ​ | Facebook, Inc. | ​ | CenturyLink, Inc. |

| Equinix | ​ | JPMorgan Chase & Co. | ​ | AT&T |

Below is a summary of our leasing activity for the year ended December 31, 2020 (in millions):

| ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- |

| ​ | ​ | ​ | ​ | ​ | ​ | |

| ​ | | ​ | | Annualized | | ​ |

| ​ | ​ | Square Feet | ​ | GAAP Rent | | ​ |

| New leases signed | | 3.4 | (1)​ | $ | 391 | (1)​ |

| Renewals signed | | 2.6 | ​ | $ | 547 | ​ |

As of December 31, [removed: 2020,] [added: 2021,] we were not a party to any legal proceedings which we believe would have a material adverse effect on our operations or financial position.

| ​ | For the fiscal year ended December [removed: 31, 2020] [added: 31, 2021] |

The aggregate market value of the common equity held by non-affiliates of Digital Realty Trust, Inc. as of June 30, [removed: 2020] [added: 2021] totaled approximately [removed: $38] [added: $42] billion based on the closing price for Digital Realty Trust, Inc.’s common stock on that day as reported by the New York Stock Exchange.

Such value excludes common stock held by executive officers, directors and 10% or greater stockholders as of June 30, [removed: 2020.][added: 2021.]

The identification of 10% or greater stockholders as of June 30, [removed: 2020] [added: 2021] is based on Schedule 13G and amended Schedule 13G reports publicly filed before June 30, [removed: 2020.][added: 2021.]

| Class | | Outstanding at February 22, [removed: 2021] [added: 2022] | |

| Common Stock, $.01 par value per share | ​ | [removed: 281,121,062] [added: 284,469,103] | ​ |

Part III incorporates by reference portions of Digital Realty Trust, Inc.’s Proxy Statement for its [removed: 2021] [added: 2022] Annual Meeting of Stockholders which the registrants anticipate will be filed no later than 120 days after the end of [removed: its] [added: their] fiscal year pursuant to Regulation 14A.

This report combines the annual reports on Form 10-K for the year ended December 31, [removed: 2020] [added: 2021] of Digital Realty Trust, Inc., a Maryland corporation, and Digital Realty Trust, L.P., a Maryland limited partnership, of which Digital Realty Trust, Inc. is the sole general partner.

Unless otherwise indicated or unless the context requires otherwise, all references in this report to “we,” “us,” “our,” “our [removed: Company”] [added: Company”,] or “the Company” refer to Digital Realty Trust, Inc. together with its consolidated subsidiaries, including Digital Realty Trust, L.P. [removed: In statements regarding qualification as a REIT, such terms] [added: Unless otherwise, all references to the “Parent”] refer [removed: solely] to Digital Realty Trust, [removed: Inc. Unless otherwise indicated or unless the context requires otherwise,] [added: Inc., and] all references to “our Operating [removed: Partnership” or] [added: Partnership,”] “the Operating Partnership” [added: or “the OP”] refer to Digital Realty Trust, L.P. together with its consolidated subsidiaries.

[removed: Digital Realty Trust, Inc. is a real estate investment trust, or REIT, and the sole general partner of Digital Realty Trust, L.P.] As of December 31, [removed: 2020, Digital Realty Trust, Inc. owned an approximate 97.2% common general partnership interest in Digital Realty Trust, L.P. The remaining approximate 2.8% of] [added: 2021,] the [removed: common limited partnership interests of Digital Realty Trust, L.P. are owned by non-affiliated third parties and certain directors and officers of Digital Realty Trust, Inc. As of December 31, 2020, Digital Realty Trust, Inc.] [added: Parent] owned all of the preferred limited partnership interests of Digital Realty Trust, L.P. As the sole general partner of Digital Realty Trust, L.P., [removed: Digital Realty Trust, Inc.] [added: the Parent] has the full, exclusive and complete responsibility for the [removed: Operating Partnership’s] [added: OP’s] day-to-day management and control.

We believe combining the annual reports on Form 10-K of [removed: Digital Realty Trust, Inc.] [added: the Parent] and [removed: Digital Realty Trust, L.P.] [added: the OP] into this single report results in the following benefits:

| | ● | enhancing investors’ understanding of [removed: our Company] [added: the Parent] and [removed: our Operating Partnership] [added: the OP] by enabling investors to view the business as a whole in the same manner as management views and operates the business; |

| | ● | eliminating duplicative disclosure and providing a more streamlined and readable presentation since a substantial portion of the disclosure applies to both [removed: our Company] [added: the Parent] and [removed: our Operating Partnership;] [added: the OP;] and |

[removed: We believe it] [added: It] is important to understand the [added: few] differences between [removed: our Company] [added: the Parent] and [removed: our Operating Partnership] [added: the OP] in the context of how we operate [removed: as an interrelated consolidated company.][added: the Company.]

[removed: Digital Realty Trust, Inc. is a REIT, whose only material asset is its ownership of partnership interests of Digital Realty Trust, L.P. As a result, Digital Realty Trust, Inc.] [added: The Parent] does not conduct business itself, other than acting as the sole general partner of [removed: Digital Realty Trust, L.P.,] [added: the OP and] issuing public equity from time to time and guaranteeing certain unsecured debt of [removed: Digital Realty Trust, L.P.] [added: the OP] and certain of its [removed: subsidiaries.][added: subsidiaries and affiliates.]

[removed: Digital Realty Trust, L.P.] [added: The OP] conducts the operations of the business and is structured as a partnership with no publicly traded equity.

Except for net proceeds from [removed: public] equity issuances by [removed: Digital Realty Trust, Inc.,] [added: the Parent,] which are generally contributed to [removed: Digital Realty Trust, L.P.] [added: the OP] in exchange for partnership units, [removed: Digital Realty Trust, L.P. generates] the [added: OP generates] capital required by the [removed: Company’s] business through [removed: Digital Realty Trust, L.P.’s] [added: the OP’s] operations, [removed: by Digital Realty Trust, L.P.’s direct or indirect] incurrence of indebtedness [removed: or through the] [added: and] issuance of partnership [removed: units.][added: units to third parties.]

The presentation of noncontrolling [removed: interests in operating partnership,] [added: interests,] stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of [removed: Digital Realty Trust, Inc.] [added: the Parent] and those of [removed: Digital Realty Trust, L.P. The common limited partnership interests held by] the [removed: limited partners in Digital Realty Trust, L.P. are presented as limited partners’ capital within partners’ capital in Digital Realty Trust, L.P.’s consolidated financial statements and as noncontrolling interests in operating partnership within equity in Digital Realty Trust, Inc.’s consolidated financial statements.][added: OP.]

The differences in the presentations between stockholders’ equity and partners’ capital result from the differences in the equity [removed: issued at] [added: and capital issuances in] the [removed: Digital Realty Trust, Inc.] [added: Parent] and [added: in] the [removed: Digital Realty Trust, L.P. levels.][added: OP.]

| [removed: | ●] [added: [ITEM 7.](#ITEM7MANAGEMENTSDISCUSSIONANDANALYSISOFF)] | [removed: Liquidity and Capital Resources in Management’s] [added: [Management’s] Discussion and Analysis of Financial Condition and Results of [removed: Operations;] [added: Operations](#ITEM7MANAGEMENTSDISCUSSIONANDANALYSISOFF)] | [added: ​ | 56 |]

| [removed: | ●] [added: [ITEM 5.](#ITEM5MARKETFORREGISTRANTSCOMMONEQUITYREL)] | [removed: Market] [added: [Market] for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities; and] [added: Securities](#ITEM5MARKETFORREGISTRANTSCOMMONEQUITYREL)] | [added: ​ | 52 |]

In the sections that combine disclosure of the [removed: Company] [added: Parent] and the [removed: Operating Partnership,] [added: OP,] this report refers to actions or holdings as being actions or holdings of the Company.

As general partner with control of the [removed: Operating Partnership, Digital Realty Trust, Inc.] [added: OP, the Parent] consolidates the [removed: Operating Partnership] [added: OP] for financial reporting purposes, and it does not have significant assets other than its investment in the [removed: Operating Partnership.][added: OP.]

Therefore, the assets and liabilities of [removed: Digital Realty Trust, Inc.] [added: the Parent] and [removed: Digital Realty Trust, L.P.] [added: the OP] are the same on their respective consolidated financial statements.

The separate discussions of [removed: Digital Realty Trust, Inc.] [added: the Parent] and [removed: Digital Realty Trust, L.P.] [added: the OP] in this report should be read in conjunction with each other to understand the results of the Company on a consolidated basis and how management operates the Company.

FOR THE YEAR ENDED DECEMBER 31, [removed: 2020][added: 2021]

| [ITEM 1B.](#ITEM1BUNRESOLVEDSTAFFCOMMENTS_820186) | [Unresolved Staff Comments](#ITEM1BUNRESOLVEDSTAFFCOMMENTS_820186) | ​ | [removed: 48] [added: 47] |

| [ITEM 2.](#ITEM2PROPERTIES_147193) | [Properties](#ITEM2PROPERTIES_147193) | ​ | [removed: 48] [added: 47] |

| [ITEM 3.](#ITEM3LEGALPROCEEDINGS_800924) | [Legal Proceedings](#ITEM3LEGALPROCEEDINGS_800924) | ​ | [removed: 53] [added: 51] |

| [ITEM 4.](#ITEM4MINESAFETYDISCLOSURES_613413) | [Mine Safety Disclosures](#ITEM4MINESAFETYDISCLOSURES_613413) | ​ | [removed: 53] [added: 51] |

| [PART II.](#PARTII_509762) | ​ | ​ | [removed: 54] [added: 52] |

| [ITEM 6.](#ITEM6SELECTEDFINANCIALDATA_11711) | [Selected Financial Data](#ITEM6SELECTEDFINANCIALDATA_11711) | ​ | [removed: 58] [added: 55] |

| [ITEM 7A](#ITEM7AQUANTITATIVEANDQUALITATIVEDISCLOSU). | [Quantitative and Qualitative Disclosures About Market Risk](#ITEM7AQUANTITATIVEANDQUALITATIVEDISCLOSU) | ​ | [removed: 94] [added: 75] |

| [ITEM 8.](#ITEM8FINANCIALSTATEMENTSANDSUPPLEMENTARY) | [Financial Statements and Supplementary Data](#ITEM8FINANCIALSTATEMENTSANDSUPPLEMENTARY) | ​ | [removed: 97] [added: 79] |

| [ITEM 9.](#ITEM9CHANGESINANDDISAGREEMENTSWITHACCOUN) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ITEM9CHANGESINANDDISAGREEMENTSWITHACCOUN) | ​ | [removed: 188] [added: 149] |

| [ITEM 9A.](#ITEM9ACONTROLSANDPROCEDURES_158705) | [Controls and Procedures](#ITEM9ACONTROLSANDPROCEDURES_158705) | ​ | [removed: 188] [added: 149] |

| [ITEM 9B.](#ITEM9BOTHERINFORMATION_255234) | [Other Information](#ITEM9BOTHERINFORMATION_255234) | ​ | [removed: 189] [added: 150] |

| [PART III.](#PARTIII_621743) | ​ | ​ | [removed: 190] [added: 151] |

| [ITEM 10.](#ITEM10DIRECTORSEXECUTIVEOFFICERSANDCORPO) | [Directors, Executive Officers and Corporate Governance](#ITEM10DIRECTORSEXECUTIVEOFFICERSANDCORPO) | ​ | [removed: 190] [added: 151] |

| [ITEM 11.](#ITEM11EXECUTIVECOMPENSATION_752022) | [Executive Compensation](#ITEM11EXECUTIVECOMPENSATION_752022) | ​ | [removed: 190] [added: 151] |

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| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| ​ | ​ |

| ​ | ​ |

| ​ | ​ |

| ​ | ​ |

The Parent is a real estate investment trust, or REIT, and the sole general partner of the OP.

In statements regarding qualification as a REIT, such terms refer solely to Digital Realty Trust, Inc. As of December 31, 2021, the Parent owned an approximate 98.0% common general partnership interest in Digital Realty Trust, L.P. The remaining approximate 2.0% of the common limited partnership interests of Digital Realty Trust, L.P. are owned by non-affiliated third parties and certain directors and officers of the Parent.

The OP holds substantially all the assets of the business, directly or indirectly.

To highlight the differences between the Parent and the OP, separate sections in this report, as applicable, individually discuss the Parent and the OP, including separate financial statements and separate Exhibit 31 and 32 certifications.

*​*

​

| --- | --- | --- |

| ​ | ​ | Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value per share | ​ | ​ | DLR Pr C | ​ | New York Stock Exchange |

There are a few differences between our Company and our Operating Partnership, which are reflected in the disclosure in this report.

Digital Realty Trust, Inc. itself does not issue any indebtedness but guarantees the unsecured debt of Digital Realty Trust, L.P. and certain of its subsidiaries and affiliates, as disclosed in this report.

Digital Realty Trust, L.P. holds substantially all the assets of the Company and holds the ownership interests in the Company’s joint ventures.

The common and preferred partnership interests held by Digital Realty Trust, Inc. in Digital Realty Trust, L.P. are presented as general partner’s capital within partners’ capital in Digital Realty Trust, L.P.’s consolidated financial statements and as preferred stock, common stock, additional paid-in capital and accumulated dividends in excess of earnings within stockholders’ equity in Digital Realty Trust, Inc.’s consolidated financial

statements.

To help investors understand the significant differences between the Company and the Operating Partnership, this report presents the following separate sections for each of the Company and the Operating Partnership:

| | ● | consolidated financial statements; |

| | ● | the following notes to the consolidated financial statements: |

| | ● | "Debt of the Company" and "Debt of the Operating Partnership"; |

| | ● | "Income per Share" and "Income per Unit"; |

| | ● | "Equity and Accumulated Other Comprehensive Loss, Net of the Company" and "Capital and Accumulated Other Comprehensive Loss of the Operating Partnership"; and |

| | ● | "Quarterly Financial Information"; |

| | ● | Selected Financial Data. |

This report also includes separate Item 9A.

Controls and Procedures sections and separate Exhibit 31 and 32 certifications for each of the Company and the Operating Partnership in order to establish that the Chief Executive Officer and Chief Financial Officer of each entity has made the requisite certifications and that the Company and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934 and 18 U.S.C. §1350.

In order to highlight the differences between the Company and the Operating Partnership, the separate sections in this report for the Company and the Operating Partnership specifically refer to the Company and the Operating Partnership.

Although the Operating Partnership is generally the entity that enters into contracts and joint ventures and holds assets and debt, reference to the Company is appropriate because the business is one enterprise and the Company operates the business through the Operating Partnership.

In this report, “global revolving credit facility” refers to our Operating Partnership’s $2.35 billion senior unsecured revolving credit facility and global senior credit agreement; “term loan facility” or “unsecured term loans” refers to our Operating Partnership’s senior unsecured multi-currency term loan facility and term loan agreement, which governs a $300 million five-year senior unsecured term loan and a $512 million five-year senior unsecured term loan; “Yen revolving credit facility” refers to our Operating Partnership’s ¥33,285,000,000 (approximately $322 million based on exchange rates at December 31, 2020) senior unsecured revolving credit facility and Yen credit agreement; and “revolving credit facilities” or “global revolving credit facilities” refer to our global revolving credit facility and our Yen revolving credit facility, collectively.

| [ITEM 5.](#ITEM5MARKETFORREGISTRANTSCOMMONEQUITYREL) | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#ITEM5MARKETFORREGISTRANTSCOMMONEQUITYREL) | ​ | 54 |

| [ITEM 7.](#ITEM7MANAGEMENTSDISCUSSIONANDANALYSISOFF) | [Management’s Discussion and Analysis of Financial Condition and Results of Operations](#ITEM7MANAGEMENTSDISCUSSIONANDANALYSISOFF) | ​ | 62 |

The following table presents an overview of our portfolio of properties, including the [removed: 43] [added: 50] data centers held as investments in unconsolidated [removed: joint ventures] [added: entities] and developable land, based on information as of December 31, [removed: 2020] [added: 2021] (dollar amounts in thousands).

[added: Please refer to Note 11 in] the [added: Notes to the] Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K for a description of all applicable encumbrances as of December 31, [removed: 2020.][added: 2021.]

| ​ | [added: ​] | ​ | | ​ | | Space Under | | ​ | | ​ | [removed: ​] | [removed: | ​ | |]

| ​ | ​ | Data Center | ​ | Net Rentable | ​ | Active | ​ | Space Held for | ​ | [removed: Annualized | | ​ |] Occupancy | |

| Metropolitan Area | ​ | Buildings | ​ | Square Feet (1) | ​ | Development (2) | ​ | Development (3) | ​ | [removed: Rent (4) | | ​ |] Percentage [removed: (5)] [added: (4)] | |

| North America | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | [removed: ​ | ​ | ​ |]

| Atlanta | [added: ​] | 4 | | 525,414 | | [removed: —] [added: 41,661] | | 313,581 | ​ | [removed: | 52,112 | | 94.6] [added: 95.1] | % |

| Houston | [added: ​] | 6 | | 392,816 | | — | | 13,969 | ​ | [removed: | 15,881 | | 76.5] [added: 70.4] | % |

| Miami | ​ | 2 | | 226,314 | | — | | — | ​ | [removed: ​ | 8,390 | | 90.0] [added: 89.9] | % |

| Austin | [added: ​] | 1 | | 85,688 | | — | | — | ​ | [removed: | 6,760 | | 63.4] [added: 52.5] | % |

| [removed: Minneapolis/St. Paul] [added: Minneapolis] | [added: ​] | 1 | | 328,765 | | — | | — | ​ | [removed: | 5,957 | |] 100.0 | % |

| Charlotte | [added: ​] | 3 | | 95,499 | | — | | — | ​ | [removed: | 4,804 | | 89.2] [added: 89.5] | % |

| Europe | [added: ​] | | | | | | | | ​ | | [removed: | | |] ​ |

| Asia Pacific | [added: ​] | | | | | | | | ​ | | [removed: | | |] ​ |

| [removed: Sydney, Australia] [added: Sydney] | [removed: (14)] [added: ​] | 4 | | 226,697 | | 222,838 | | — | ​ | [removed: ​ | 27,733 | | 85.7] [added: 86.4] | % |

| [removed: Melbourne, Australia] [added: Melbourne] | [removed: (14)] [added: ​] | 2 | | 146,570 | | — | | — | ​ | [removed: ​ | 17,829 | | 71.3] [added: 62.8] | % |

| [removed: Seoul, South Korea] [added: Seoul] | [removed: (16)] [added: ​] | 1 | | — | | 162,260 | | — | ​ | [removed: ​ |] — | [removed: | — |] % |

| Africa | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | [removed: ​ | ​ | ​ |]

| Non-Data Center Properties | [added: ​] | — | | 263,668 | | — | | — | ​ | [removed: | 1,254 | |] 100.0 | % |

| Managed Unconsolidated [removed: Joint Ventures] [added: Entities] | [added: ​] | | | | | | | | ​ | | [removed: | | |] ​ |

| Hong Kong | [removed: (17)] [added: ​] | 1 | | 186,300 | | — | | — | ​ | [removed: | 19,970 | |] 87.3 | % |

| Non-Managed Unconsolidated [removed: Joint Ventures] [added: Entities] | [added: ​] | | | | | | | | ​ | | [removed: | | |] ​ |

| [removed: Fortaleza, Brazil] [added: Fortaleza] | [removed: (19)] [added: ​] | 1 | | 94,205 | | — | | — | ​ | [removed: | 9,860 | |] 100.0 | % |

| Rio De [removed: Janeiro, Brazil] [added: Janeiro] | [removed: (19)] [added: ​] | 2 | | 72,442 | | 26,781 | | — | ​ | [removed: | 10,926 | |] 100.0 | % |

| Seattle | ​ | 1 | | 51,000 | | — | | — | ​ | [removed: | 7,562 | |] 100.0 | % |

| [removed: Queretaro, Mexico] [added: Queretaro] | ​ | 2 | | — | | 108,178 | | 376,202 | ​ | [removed: |] — | [removed: | — |] % |

| [removed: Santiago, Chile] [added: Santiago] | [removed: (20)] [added: ​] | 2 | | 67,340 | | 45,209 | | 180,835 | ​ | [removed: | 6,709 | |] 68.7 | % |

| (1) | Net rentable square feet at a building represents the current square feet at that building under lease as specified in the lease agreements plus management’s estimate of space available for lease. We estimate the total net rentable square feet available for lease based on a number of factors in addition to contractually leased square feet, including [removed: available power, required support space and common area. Net rentable square feet includes tenants’ proportional share of common areas but excludes space held for development.] |

| [removed: (4)] [added: (2)] | Annualized rent represents the monthly contractual [added: base] rent (defined as cash base rent before abatements) under existing leases as of December 31, [removed: 2020] [added: 2021] multiplied by 12. |

| [removed: (5)] [added: (4)] | Excludes space held for development and space under active development. We estimate the total square feet available for lease based on a number of factors in addition to contractually leased square feet, including available power, required support space and common area. |

We lease space [removed: at certain of our data centers] from third parties [added: under noncancellable leases for: our corporate headquarters, several regional office locations, certain data centers,] and certain [removed: equipment under noncancelable lease agreements.][added: equipment.]

[removed: As of December 31, 2020,] [added: In addition, we are subject to ground leases at] certain [removed: of our] data [removed: centers,] [added: centers] primarily in Europe and [removed: Singapore, are subject to ground leases.][added: Singapore.]

The following table sets forth information regarding the 20 largest customers in our portfolio based on annualized recurring revenue as of December 31, [removed: 2020] [added: 2021] (dollar amounts in thousands).

| ​ | ​ | Tenant | ​ | Locations | ​ | [removed: Revenue (1)] [added: Revenue (1)] | | ​ | Revenue | ​ | Years |

| 1 | | Fortune 50 Software Company | | [removed: 53] [added: 56] | | $ | [removed: 321,760] [added: 340,515] | | [removed: 9.5] [added: 10.0] | % | 8.9 |

| 6 | | Fortune 25 Investment Grade-Rated Company | | 25 | | | [removed: 83,744] [added: 94,292] | | [removed: 2.5] [added: 2.8] | % | [removed: 2.7] [added: 4.5] |

| 10 | | Fortune 500 SaaS Provider | | [removed: 13] [added: 15] | | | [removed: 65,059] [added: 66,522] | | [removed: 1.9] [added: 2.0] | % | [removed: 4.9] [added: 4.3] |

| 13 | | Fortune 25 Tech Company | | [removed: 36] [added: 44] | | | [removed: 58,177] [added: 59,258] | | 1.7 | % | [removed: 2.9] [added: 3.1] |

| [removed: 16] [added: 15] | | Comcast Corporation | | [removed: 27] [added: 32] | | | [removed: 41,343] [added: 42,132] | | 1.2 | % | [removed: 5.1] [added: 4.3] |

| ​ | | Total / Weighted Average | ​ | ​ | | $ | [removed: 1,654,347] [added: 1,675,426] | | [removed: 48.9] [added: 49.2] | % | 6.1 |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| Northern Virginia | ​ | 22 | | 5,404,662 | | 780,016 | | 128,694 | ​ | 91.1 | % |

| Chicago | ​ | 10 | | 3,428,169 | | — | | 148,101 | ​ | 89.1 | % |

| New York | ​ | 13 | | 2,103,114 | | 147,753 | | 106,407 | ​ | 82.4 | % |

| Dallas | ​ | 21 | | 3,550,639 | | 136,445 | | 8,204 | ​ | 79.8 | % |

| Silicon Valley | ​ | 15 | | 1,591,835 | | — | | 130,752 | ​ | 97.4 | % |

| Phoenix | ​ | 2 | | 795,697 | | — | | — | ​ | 72.1 | % |

| San Francisco | ​ | 4 | | 843,339 | | — | | — | ​ | 66.1 | % |

| Seattle | ​ | 1 | | 398,735 | | — | | — | ​ | 85.3 | % |

| Los Angeles | ​ | 2 | | 580,764 | | 37,713 | | — | ​ | 83.3 | % |

| Portland | ​ | 2 | | 399,095 | | 756,483 | | — | ​ | 98.4 | % |

| Toronto | ​ | 2 | | 300,307 | | 427,050 | | — | ​ | 85.6 | % |

| Boston | ​ | 3 | | 437,119 | | — | | 50,649 | ​ | 49.9 | % |

| North America Total | ​ | 114 | | 21,487,970 | | 2,327,121 | | 900,357 | ​ | 85.4 | % |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| London | ​ | 16 | | 1,433,240 | | 64,274 | | 95,832 | ​ | 68.0 | % |

| Frankfurt | ​ | 27 | | 1,893,266 | | 1,327,522 | | — | ​ | 80.1 | % |

| Amsterdam | ​ | 13 | | 1,220,639 | | 46,240 | | 95,262 | ​ | 70.2 | % |

| Paris | ​ | 10 | | 598,536 | | 314,876 | | — | ​ | 82.7 | % |

| Marseille | ​ | 4 | | 389,484 | | 165,435 | | — | ​ | 74.0 | % |

| Vienna | ​ | 2 | | 351,418 | | — | | — | ​ | 79.5 | % |

| Dublin | ​ | 8 | | 440,917 | | 112,135 | | — | ​ | 77.3 | % |

| Zurich | ​ | 3 | | 284,671 | | 258,240 | | — | ​ | 82.5 | % |

| Madrid | ​ | 4 | | 218,282 | | 225,140 | | — | ​ | 76.1 | % |

| Brussels | ​ | 4 | | 171,470 | | 186,464 | | — | ​ | 62.6 | % |

| Stockholm | ​ | 6 | | 205,304 | | 48,492 | | — | ​ | 63.7 | % |

| Copenhagen | ​ | 3 | | 162,182 | | 163,696 | | — | ​ | 78.7 | % |

| Dusseldorf | ​ | 3 | | 105,523 | | 107,600 | | — | ​ | 59.7 | % |

| Athens | ​ | 3 | | 55,170 | | 92,536 | | — | ​ | 74.4 | % |

| Zagreb | ​ | 1 | | 19,105 | | 12,801 | | — | ​ | 55.3 | % |

| Europe Total | ​ | 107 | | 7,549,209 | | 3,125,451 | | 191,094 | ​ | 74.6 | % |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| Singapore | ​ | 3 | | 882,847 | | — | | — | ​ | 84.3 | % |

| Hong Kong | ​ | 1 | | 99,129 | | 185,622 | | — | ​ | — | % |

| Osaka | ​ | 1 | ​ | — | ​ | 235,532 | ​ | — | ​ | — | % |

| Asia Pacific Total | ​ | 12 | | 1,355,243 | | 806,252 | | — | ​ | 76.2 | % |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| Nairobi | ​ | 1 | | 15,710 | | — | | — | ​ | 61.9 | % |

| Mombasa | ​ | 2 | | 10,115 | | 37,025 | | — | ​ | 53.2 | % |

| Maputo | ​ | 1 | | — | | 3,940 | | — | ​ | — | % |

As of December 31, 2020, our portfolio consisted of 291 data centers, including 43 data centers held as investments in unconsolidated joint ventures, and contain a total of approximately 43.6 million rentable square feet, including 5.4 million square feet of space under active development and 2.3 million square feet of space held for development.

Please refer to Note 8 in the Notes to

[Index to Financial Statements](#INDEX_423931)

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Northern Virginia | | 24 | | 5,721,264 | | 699,908 | | 78,538 | ​ | $ | 584,085 | | 94.6 | % |

| Chicago | | 10 | | 3,427,367 | | — | | 148,101 | ​ | | 299,046 | | 87.6 | % |

| New York | | 13 | | 2,050,605 | | 233,807 | | 99,955 | ​ | | 211,307 | | 83.8 | % |

| Silicon Valley | | 20 | | 2,251,021 | | 65,594 | | — | ​ | | 211,214 | | 96.8 | % |

| Dallas | | 21 | | 3,530,749 | | 143,051 | | 28,094 | ​ | | 193,258 | | 81.4 | % |

| Phoenix | | 3 | | 795,687 | | — | | 227,274 | ​ | | 70,533 | | 71.1 | % |

| San Francisco | | 4 | | 824,972 | | 23,321 | | — | ​ | | 65,175 | | 71.1 | % |

| Los Angeles | | 4 | | 798,571 | | 19,908 | | — | ​ | | 43,447 | | 85.5 | % |

| Seattle | ​ | 1 | | 400,369 | | — | | — | ​ | | 38,724 | | 87.4 | % |

| Toronto, Canada | (6) | 2 | | 316,170 | | 499,839 | | — | ​ | ​ | 27,986 | | 83.7 | % |

| Portland | ​ | 2 | | 264,973 | | 336,463 | | — | ​ | ​ | 26,544 | | 98.7 | % |

| Boston | | 4 | | 467,519 | | — | | 50,649 | ​ | | 21,170 | | 47.3 | % |

| North America Total | | 125 | | 22,503,763 | | 2,021,891 | | 960,161 | ​ | | 1,886,393 | | 87.0 | % |

| London, England | (7) | 19 | | 1,715,719 | | — | | 161,136 | ​ | ​ | 259,830 | | 77.4 | % |

| Frankfurt, Germany | (8) | 21 | | 1,627,677 | | 357,733 | | — | ​ | ​ | 191,190 | | 88.5 | % |

| Amsterdam, Netherlands | (8) | 17 | | 1,442,910 | | 48,490 | | 95,262 | ​ | ​ | 149,828 | | 67.6 | % |

| Paris, France | (8) | 12 | | 658,681 | | 376,162 | | — | ​ | ​ | 74,845 | | 89.9 | % |

| Vienna, Austria | (8) | 2 | | 359,809 | | — | | — | ​ | ​ | 46,758 | | 84.0 | % |

| Dublin, Ireland | (8) | 8 | | 380,739 | | 94,005 | | — | ​ | ​ | 45,145 | | 75.0 | % |

| Marseille, France | (8) | 4 | | 278,617 | | 161,449 | | — | ​ | ​ | 37,813 | | 78.1 | % |

| Madrid, Spain | (8) | 3 | | 222,047 | | — | | — | ​ | ​ | 35,044 | | 77.7 | % |

| Zurich, Switzerland | (9) | 3 | | 229,388 | | 315,197 | | — | ​ | ​ | 30,614 | | 70.6 | % |

| Brussels, Belgium | (8) | 2 | | 132,501 | | — | | — | ​ | ​ | 23,153 | | 76.1 | % |

| Stockholm, Sweden | (10) | 6 | | 164,421 | | 89,276 | | — | ​ | ​ | 22,440 | | 73.4 | % |

| Copenhagen, Denmark | (11) | 3 | | 164,489 | | 61,342 | | — | ​ | ​ | 18,120 | | 76.7 | % |

| Dusseldorf, Germany | (8) | 2 | | 105,523 | | — | | — | ​ | ​ | 16,970 | | 60.2 | % |

| Athens, Greece | (8) | 2 | | 55,167 | | — | | — | ​ | ​ | 6,288 | | 58.0 | % |

| Zagreb, Croatia | (12) | 1 | | 19,365 | | 12,538 | | — | ​ | ​ | 2,032 | | 49.9 | % |

| Geneva, Switzerland | (9) | 1 | | 59,190 | | — | | — | ​ | ​ | 2,012 | | 100.0 | % |

| Manchester, England | (7) | 1 | | 38,016 | | — | | — | ​ | ​ | 1,863 | | 100.0 | % |

| Europe Total | | 107 | | 7,654,259 | | 1,516,192 | | 256,398 | ​ | | 963,945 | | 78.7 | % |

| Singapore | (13) | 3 | | 540,638 | | 344,826 | | — | ​ | ​ | 93,438 | | 95.3 | % |

| Tokyo, Japan | (15) | 1 | | — | | 406,664 | | — | ​ | ​ | — | | — | % |

| Osaka, Japan | (15) | 1 | | — | | 193,535 | | — | ​ | ​ | — | | — | % |

| Hong Kong | (17) | 1 | | — | | — | | 284,751 | ​ | ​ | — | | — | % |

As of February 22, [removed: 2021,] [added: 2022,] there were approximately [removed: 54] [added: 59] holders of record of Digital Realty Trust, Inc.’s common stock.

As of February 22, [removed: 2021,] [added: 2022,] there were [removed: 87] [added: 73] holders of record of common units, including Digital Realty Trust, L.P.’s general partner, Digital Realty Trust, Inc.

The following graph compares the yearly change in the cumulative total stockholder return on Digital Realty Trust, Inc.’s common stock during the period from December 31, [removed: 2015] [added: 2016] through December 31, [removed: 2020,] [added: 2021,] with the cumulative total returns on the MSCI US REIT Index (RMS) and the S&P 500 Market Index.

The comparison assumes that $100 was invested on December 31, [removed: 2015] [added: 2016] in Digital Realty Trust, Inc.’s common stock and in each of these indices and assumes reinvestment of dividends, if any.

Assumes $100 invested on December 31, [removed: 2015] [added: 2016] and

To fiscal year ending December 31, [removed: 2020][added: 2021]

[removed: ][added: ]

| December 31, [removed: 2015] [added: 2016] | | 100.0 | | 100.0 | | 100.0 |

| ● | The hypothetical investment in Digital Realty Trust, Inc.’s common stock presented in the stock performance graph above is based on the closing price of the common stock on December 31, [removed: 2015.] [added: 2016.] |

During the year ended December 31, [removed: 2020,] [added: 2021,] our Operating Partnership issued partnership units in private placements in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act, in the amounts and for the consideration set forth below:

During the year ended December 31, [removed: 2020,] [added: 2021,] Digital Realty Trust, Inc. issued an aggregate of [removed: 263,796] [added: 265,576] shares of its common stock in connection with restricted stock awards for no cash consideration.

For each share of common stock issued by Digital Realty Trust, Inc. in connection with such awards, our Operating Partnership issued a restricted common unit to Digital Realty Trust, Inc. During the year ended December 31, [removed: 2020,] [added: 2021,] our Operating Partnership issued an aggregate of [removed: 263,796] [added: 265,576] common units to Digital Realty Trust, Inc., as required by our Operating Partnership’s partnership agreement.

During the year ended December 31, [removed: 2020,] [added: 2021,] an aggregate of [removed: 35,274] [added: 63,724] shares of its common stock were forfeited to Digital Realty Trust, Inc. in connection with restricted stock awards for a net issuance of [removed: 228,522] [added: 201,852] shares of common stock.

All other issuances of unregistered equity securities of our Operating Partnership during the year ended December 31, [removed: 2020] [added: 2021] have been disclosed previously in filings with the SEC.

For all issuances of units to Digital Realty Trust, Inc., our Operating Partnership relied on Digital Realty Trust, Inc.’s status as a publicly traded NYSE-listed company with over [removed: $36.1] [added: $36] billion in total consolidated assets and as our Operating Partnership’s majority owner and general partner as the basis for the exemption under Section 4(a)(2) of the Securities Act.

| December [removed: 1-31,] [added: 31,] 2020 | [removed: ​] | [removed: — | ​ | ​ | —] [added: 163.0] | [removed: ​] | [removed: —] [added: 181.3] | [removed: ​] | [removed: —] [added: 116.6] |

| December 31, 2017 | | 119.8 | | 121.8 | | 105.1 |

| December 31, 2018 | | 116.1 | | 116.5 | | 100.3 |

| December 31, 2019 | | 135.3 | | 153.2 | | 126.2 |

| December 31, 2021 | | 213.0 | | 233.4 | | 166.8 |

None.

None.

[Index to Financial Statements](#INDEX_423931)

| December 31, 2016 | | 134.9 | | 112.0 | | 108.6 |

| December 31, 2017 | | 161.6 | | 136.4 | | 114.1 |

| December 31, 2018 | | 156.7 | | 130.4 | | 108.9 |

| December 31, 2019 | | 182.6 | | 171.5 | | 137.0 |

| December 31, 2020 | | 219.9 | | 203.0 | | 126.7 |

| --- | --- |

During the year ended December 31, 2020, we issued 189,402 shares of our Common Stock as partial consideration for our acquisition of Lamda Hellix.

The shares were issued in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), provided by Regulation S of the Securities Act, on the basis of representations that the recipients were not “US Persons” (as that term is defined in Regulation S) and were not in the United States at the time they received the shares.

The Company did not engage in any form of “directed selling efforts” (as that term is defined in Regulation S) in connection with the issuance of the shares.

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Period | ​ | (a) Total Number of Shares (or Units) Purchased | ​ | (b) Average Price Paid per Share (or Unit) | | ​ | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (1) | ​ | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (2) |

| October 1-31, 2020 | ​ | 10,000,000 shares of Series G Preferred Stock | ​ | $ | 25.00 | ​ | 10,000,000 shares of Series G Preferred Stock | ​ | — |

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| November 1-30, 2020 | ​ | — | ​ | ​ | — | ​ | — | ​ | — |

| Total | ​ | 10,000,000 | ​ | $ | 25.00 | ​ | 10,000,000 | ​ | — |

| (1) | On September 15, 2020, the Company distributed a Notice of Redemption to all holders of record of its outstanding 5.875% series G cumulative redeemable preferred stock, or the series G preferred stock, announcing its redemption of all 10,000,000 outstanding shares of the series G preferred stock at a redemption price of $25.057118 per share. The redemption price was equal to the original issuance price of $25.00 per share, plus accrued and unpaid dividends up to but not including the redemption date. The redemption was made at the Company's option pursuant to Section 5(b) of the Articles Supplementary establishing and fixing the rights and preferences of the series G preferred stock. The redemption date was October 15, 2020. |

| (2) | The Company redeemed all outstanding shares of its series G preferred stock on October 15, 2020. The Operating Partnership also redeemed the corresponding 10,000,000 series G preferred units. |

The following data should be read in conjunction with our financial statements and notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this Form 10-K.

Certain prior year amounts have been reclassified to conform to the current year presentation.

SELECTED COMPANY FINANCIAL AND OTHER DATA (Digital Realty Trust, Inc.)

The following table sets forth selected consolidated financial and operating data on an historical basis for Digital Realty Trust, Inc. (amounts in thousands, except share and per share data).

| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ​ | ​ | Year Ended December 31, | | | | | | | | | | | | | |

| ​ | | 2020 | | | 2019 | | | 2018 | | | 2017 | | | 2016 | |

| | | | | | | | | | | | | | | | |

| ​ | ​ | (Amounts in thousands, except share and per share data) | | | | | | | | | | | | | |

| Statement of Operations Data: | | ​ | | | ​ | | | ​ | | | ​ | | | ​ | |

| Operating Revenues: | | ​ | | | ​ | | | ​ | | | ​ | | | ​ | |

| Rental and other services | ​ | $ | 3,886,546 | ​ | $ | 3,196,356 | ​ | $ | 2,412,076 | ​ | $ | 2,010,301 | ​ | $ | 1,746,828 |

| Tenant reimbursements | ​ | | — | ​ | | — | ​ | | 624,637 | ​ | | 440,224 | ​ | | 355,903 |

| Fee income and other | ​ | | 17,063 | ​ | | 12,885 | ​ | | 9,765 | ​ | | 7,403 | ​ | | 39,482 |

| Total operating revenues | ​ | | 3,903,609 | ​ | | 3,209,241 | ​ | | 3,046,478 | ​ | | 2,457,928 | ​ | | 2,142,213 |

| Operating Expenses: | ​ | | | ​ | | | ​ | | | ​ | | | ​ | | |

| Rental property operating and maintenance | ​ | | 1,331,493 | ​ | | 1,020,578 | ​ | | 957,065 | ​ | | 759,616 | ​ | | 660,177 |

| Property taxes and insurance | ​ | | 182,623 | ​ | | 172,183 | ​ | | 140,918 | ​ | | 134,995 | ​ | | 111,989 |

| Depreciation and amortization | ​ | | 1,366,379 | ​ | | 1,163,774 | ​ | | 1,186,896 | ​ | | 842,464 | ​ | | 699,324 |

| General and administrative | ​ | | 351,369 | ​ | | 211,097 | ​ | | 163,667 | ​ | | 161,441 | ​ | | 152,733 |

| Transaction and integration expenses | ​ | | 106,662 | ​ | | 27,925 | ​ | | 45,327 | ​ | | 76,048 | ​ | | 20,491 |

| Impairment on investments in real estate | ​ | | 6,482 | ​ | | 5,351 | ​ | | — | ​ | | 28,992 | ​ | | — |

| Other | ​ | | 1,075 | ​ | | 14,118 | ​ | | 2,818 | ​ | | 3,077 | ​ | | 213 |

| Total operating expenses | ​ | | 3,346,083 | ​ | | 2,615,026 | ​ | | 2,496,691 | ​ | | 2,006,633 | ​ | | 1,644,927 |

| Operating income | ​ | | 557,526 | ​ | | 594,215 | ​ | | 549,787 | ​ | | 451,295 | ​ | | 497,286 |

| Other Income (Expenses): | ​ | | ​ | ​ | | ​ | ​ | | ​ | ​ | | | ​ | | |

| Equity in (loss) earnings of unconsolidated joint ventures | ​ | | (57,629) | ​ | | 8,067 | ​ | | 32,979 | ​ | | 25,516 | ​ | | 17,104 |

| Gain on disposition of properties, net | ​ | | 316,894 | ​ | | 267,651 | ​ | | 80,049 | ​ | | 40,354 | ​ | | 169,902 |

| Gain on deconsolidation, net | ​ | | — | ​ | | 67,497 | ​ | | — | ​ | | — | ​ | | — |

| Interest and other income (expense) | ​ | | 20,222 | ​ | | 66,000 | ​ | | 3,481 | ​ | | 3,655 | ​ | | (4,564) |

| Interest expense | ​ | | (333,021) | ​ | | (353,057) | ​ | | (321,529) | ​ | | (258,642) | ​ | | (236,480) |

| (Loss) gain from early extinguishment of debt | ​ | | (103,215) | ​ | | (39,157) | ​ | | (1,568) | ​ | | 1,990 | ​ | | (1,011) |

| Income tax expense | ​ | | (38,047) | ​ | | (11,995) | ​ | | (2,084) | ​ | | (7,901) | ​ | | (10,385) |

| Net income | ​ | | 362,730 | ​ | | 599,221 | ​ | | 341,115 | ​ | | 256,267 | ​ | | 431,852 |

| Net income attributable to noncontrolling interests | ​ | | (6,332) | ​ | | (19,460) | ​ | | (9,869) | ​ | | (8,008) | ​ | | (5,665) |

| Net income attributable to Digital Realty Trust, Inc. | ​ | | 356,398 | ​ | | 579,761 | ​ | | 331,246 | ​ | | 248,259 | ​ | | 426,187 |

| Preferred stock dividends | ​ | | (76,536) | ​ | | (74,990) | ​ | | (81,316) | ​ | | (68,802) | ​ | | (83,771) |

| Issuance costs associated with redeemed preferred stock | ​ | | (16,520) | ​ | | (11,760) | ​ | | — | ​ | | (6,309) | ​ | | (10,328) |

| Net income available to common stockholders | ​ | $ | 263,342 | ​ | $ | 493,011 | ​ | $ | 249,930 | ​ | $ | 173,148 | ​ | $ | 332,088 |

| [Management’s Reports on Internal Control over Financial Reporting](#ManagementsReportonInternalControloverFi) | ​ | [removed: 98] [added: 80] | |

| [Reports of Independent Registered Public Accounting Firm](#ReportofIndependentRegisteredPublicAccou) [added: (Auditor Firm ID: 185)] | ​ | [removed: 99] [added: 81] | |

| [Consolidated Balance Sheets as of December 31, [removed: 2020] [added: 2021] and [removed: 2019](#CONSOLIDATEDBALANCESHEETS_384428)] [added: 2020](#CONSOLIDATEDBALANCESHEETS_384428)] | ​ | [removed: 104] [added: 86] | |

| [Consolidated Income Statements for each of the years in the three-year period ended December 31, [removed: 2020](#CONSOLIDATEDINCOMESTATEMENTS_453902)] [added: 202](#CONSOLIDATEDINCOMESTATEMENTS_453902)1] | ​ | [removed: 105] [added: 87] | |

| [Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 31, [removed: 2020](#CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINC)] [added: 2021](#CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVEINC)] | ​ | [removed: 106] [added: 88] | |

| [Consolidated Statements of Equity for each of the years in the three-year period ended December 31, [removed: 2020](#CONSOLIDATEDSTATEMENTSOFEQUITY_499706)] [added: 202](#CONSOLIDATEDSTATEMENTSOFEQUITY_499706)1] | ​ | [removed: 108] [added: 91] | |

| [Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, [removed: 2020](#CONSOLIDATEDSTATEMENTSOFCASHFLOWS_395773)] [added: 202](#CONSOLIDATEDSTATEMENTSOFCASHFLOWS_395773)1] | ​ | [removed: 110] [added: 92] | |

| [Consolidated Balance Sheets as of December 31, [removed: 2020] [added: 2021] and [removed: 2019](#CONSOLIDATEDBALANCESHEETS_541482)] [added: 2020](#CONSOLIDATEDBALANCESHEETS_541482)] | ​ | [removed: 113] [added: 93] | |

| [Consolidated Income Statements for each of the years in the three-year period ended December 31, [removed: 2020](#CONSOLIDATEDINCOMESTATEMENTS_567443)] [added: 202](#CONSOLIDATEDINCOMESTATEMENTS_567443)1] | ​ | [removed: 114] [added: 94] | |

| [Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 31, [removed: 2020](#STATEMENTSOFCOMPREHENSIVEINCOME_895031)] [added: 2021](#STATEMENTSOFCOMPREHENSIVEINCOME_895031)] | ​ | [removed: 115] [added: 95] | |

| [Consolidated Statements of Capital for each of the years in the three-year period ended December 31, [removed: 2020](#CONSOLIDATEDSTATEMENTSOFCAPITAL_786500)] [added: 202](#CONSOLIDATEDSTATEMENTSOFCAPITAL_786500)1] | ​ | [removed: 116] [added: 96] | |

| [Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, [removed: 2020](#CONSOLIDATEDSTATEMENTSOFCASHFLOWS_542655)] [added: 202](#CONSOLIDATEDSTATEMENTSOFCASHFLOWS_542655)1] | ​ | [removed: 119] [added: 99] | |

| [Notes to Consolidated Financial Statements](#a1OrganizationandDescriptionofBusiness_4) | ​ | [removed: 122] [added: 100] | |

| [Supplemental Schedule—Schedule III—Properties and Accumulated Depreciation](#SCHDULE) | ​ | [removed: 186] [added: 146] | |

| [Notes to Schedule III—Properties and Accumulated Depreciation](#a1TaxCost_702541) | ​ | [removed: 187] [added: 148] | |

Under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, we assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, [removed: 2020.][added: 2021.]

We acquired Interxion and subsidiaries during the year ended December 31, [removed: 2020.][added: 2021.]

Based on our assessment, management concluded that as of December 31, [removed: 2020,] [added: 2021,] the Company’s internal control over financial reporting was effective based on those criteria.

This report appears on page [removed: 101.][added: 83.]

Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer of our general partner, we assessed the effectiveness of the Operating Partnership’s internal control over financial reporting as of December 31, [removed: 2020.][added: 2021.]

Based on our assessment, management concluded that as of December 31, [removed: 2020,] [added: 2021,] the Operating Partnership’s internal control over financial reporting was effective based on those criteria.

_Opinion on [removed: the Consolidated] [added: the_ _Consolidated] Financial Statements_

We have audited the accompanying consolidated balance sheets of Digital Realty Trust, Inc. and subsidiaries (the Company) as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] the related consolidated income statements, and statements of comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, [removed: 2020,] [added: 2021,] and the related notes and financial statement schedule III, properties and accumulated depreciation (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, [removed: 2020,] [added: 2021,] in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on [removed: the] criteria established in _Internal Control – Integrated Framework (2013)_ issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated [removed: March 1, 2021] [added: February 25, 2022] expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

_Critical Audit [removed: Matters_][added: Matter_]

The critical audit [removed: matters] [added: matter] communicated below [removed: are matters] [added: is a matter] arising from the current period audit of the consolidated financial statements that [removed: were] [added: was] communicated or required to be communicated to the audit committee and that: (1) [removed: relate] [added: relates] to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of [added: a] critical audit [removed: matters] [added: matter] does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit [removed: matters] [added: matter] below, providing [added: a] separate [removed: opinions] [added: opinion] on the critical audit [removed: matters] [added: matter] or on the accounts or disclosures to which [removed: they relate.][added: it relates.]

Whenever the results of that [removed: assessment,] [added: assessment] indicate that it is not probable that the Company will be able to collect substantially all lease payments over the remaining term of the lease, the Company records a reduction to rental revenue equal to the then-current combined balance of the deferred rent and amounts contractually due but unpaid for the lease (rent receivable), and ceases recognizing rental revenue on a straight-line basis and commences recognizing rental revenue on a cash collected basis.

Rental and other services revenue was [removed: $3.9] [added: $4.4] billion for the year ended December 31, [removed: 2020] [added: 2021] and deferred rent and rent receivable, net was [removed: $528.2] [added: $547.4] million and [removed: $358.0] [added: $370.5] million, respectively, as of December 31, [removed: 2020.][added: 2021.]

We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s probability assessment of lease payment collection process, including [added: controls related to] the assessment of the creditworthiness of the customer and any guarantors.

We have audited Digital Realty Trust, Inc. and [removed: subsidiaries] [added: subsidiaries'] (the Company) internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in _Internal Control – Integrated Framework (2013)_ issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2020,] [added: 2021,] based on criteria established in _Internal Control – Integrated Framework (2013)_ issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] the related consolidated income statements and consolidated statements of comprehensive income, equity, and cash flows for each of the years in the three-year period ended December 31, [removed: 2020,] [added: 2021,] and the related notes and financial statement schedule III, properties and accumulated depreciation (collectively, the consolidated financial statements), and our report dated [removed: March 1, 2021] [added: February 25, 2022] expressed an unqualified opinion on those consolidated financial statements.

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying [removed: _Management’s] [added: Management's] Report on Internal Control over Financial [removed: Reporting_.][added: Reporting.]

We have audited the accompanying consolidated balance sheets of Digital Realty Trust, L.P. and subsidiaries (the Operating Partnership) as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] the related consolidated income [removed: statements] [added: statements,] and consolidated statements of comprehensive income, capital, and cash flows for each of the years in the three-year period ended December 31, [removed: 2020,] [added: 2021,] and the related notes and financial statement schedule III, properties and accumulated depreciation (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Operating Partnership as of December 31, [removed: 2020] [added: 2021] and [removed: 2019,] [added: 2020,] and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, [removed: 2020,] [added: 2021,] in conformity with U.S. generally accepted accounting principles.

Whenever the results of that [removed: assessment,] [added: assessment] indicate that it is not probable that the Operating Partnership will be able to collect substantially all lease payments over the remaining term of the lease, the Operating Partnership records a reduction to rental revenue equal to the then-current combined balance of the deferred rent and amounts contractually due but unpaid for the lease (rent receivable), and ceases recognizing rental revenue on a straight-line basis and commences recognizing rental revenue on a cash collected basis.

We evaluated the design and tested the operating effectiveness of certain internal controls over the Operating Partnership’s probability assessment of lease payment collection process, including [added: controls related to] the assessment of the creditworthiness of the customer and any guarantors.

[removed: DIGITAL] [added: DIGITAL] REALTY TRUST, [removed: INC. AND SUBSIDIARIES][added: INC.]

We acquired Interxion and subsidiaries during the year ended December 31, 2021.

| February 25, 2022 | ​ | ​ |

| February 25, 2022 | ​ | ​ |

_Critical Audit Matter_

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Rental and other services revenue was $4.4 billion for the year ended December 31, 2021 and deferred rent and rent receivable, net was $547.4 million and $370.5 million, respectively, as of December 31, 2021.

| February 25, 2022 | ​ | ​ |

| Investments in unconsolidated entities | ​ | | 1,807,689 | ​ | | 1,148,158 |

| Gain (loss) on redemption of preferred stock | ​ | | 18,000 | ​ | | (16,520) | ​ | | (11,760) |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ​ | ​ | Noncontrolling | | ​ | Preferred | | ​ | Common | ​ | Common | | ​ | Paid-in | | ​ | Excess of | | ​ | Income (Loss), | | ​ | Noncontrolling | | ​ | Total | |

| ​ | ​ | Interests | | ​ | Stock | | ​ | Shares | ​ | Stock | | ​ | Capital | | ​ | Earnings | | ​ | Net | | ​ | Interests | | ​ | Equity | |

| Balance as of December 31, 2020 | ​ | $ | 42,011 | ​ | $ | 950,940 | | 280,289,726 | ​ | $ | 2,788 | ​ | $ | 20,626,897 | ​ | $ | (3,997,938) | ​ | $ | 135,010 | ​ | $ | 728,639 | ​ | $ | 18,446,336 |

| Conversion of common units to common stock | ​ | | — | ​ | | — | | 2,502,331 | ​ | | 25 | ​ | | 206,695 | ​ | | — | ​ | | — | ​ | | (206,720) | ​ | | — |

| Issuance of common units in connection with acquisition | ​ | ​ | — | ​ | ​ | — | ​ | 125,395 | ​ | ​ | 1 | ​ | ​ | 18,269 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 18,270 |

| Issuance of common stock, net of costs | ​ | | — | ​ | | — | | 1,060,943 | ​ | | 11 | ​ | | 172,085 | ​ | | — | ​ | | — | ​ | | — | ​ | | 172,096 |

| Redemption of series C preferred stock | ​ | ​ | — | ​ | | (219,250) | | — | ​ | | — | ​ | | — | ​ | | 18,000 | ​ | | — | ​ | | — | ​ | | (201,250) |

| Vesting of restricted stock, net | ​ | ​ | — | ​ | ​ | — | ​ | 385,783 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — |

| Dividends and distributions on common stock and common and incentive units | ​ | | (724) | ​ | | — | | — | ​ | | — | ​ | | — | ​ | | (1,315,489) | ​ | | — | ​ | | (31,567) | ​ | | (1,347,056) |

| Contributions from (distributions to) noncontrolling interests | ​ | | (1,052) | ​ | | — | | — | ​ | | — | ​ | | — | ​ | | — | ​ | | — | ​ | | 125,186 | ​ | | 125,186 |

| Deconsolidation of consolidated entities | ​ | ​ | — | ​ | ​ | — | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | (197,016) | ​ | ​ | (197,016) |

| Net income | ​ | | 930 | ​ | | — | | — | ​ | | — | ​ | | — | ​ | | 1,709,259 | ​ | | — | ​ | | 37,223 | ​ | | 1,746,482 |

| Other comprehensive loss—foreign currency translation adjustments | ​ | | — | ​ | | — | | — | ​ | | — | ​ | | — | ​ | | — | ​ | | (311,413) | ​ | | (7,415) | ​ | | (318,828) |

| Balance as of December 31, 2021 | ​ | $ | 46,995 | ​ | $ | 731,690 | | 284,446,307 | ​ | $ | 2,824 | ​ | $ | 21,075,863 | ​ | $ | (3,631,929) | ​ | $ | (173,880) | ​ | $ | 472,219 | ​ | $ | 18,476,787 |

| Depreciation and amortization | ​ | ​ | 1,486,632 | ​ | ​ | 1,366,379 | ​ | ​ | 1,163,774 |

| Amortization of deferred financing costs and debt discount / premium | ​ | ​ | 18,694 | ​ | ​ | 19,202 | ​ | ​ | 15,622 |

| Other items, net | ​ | ​ | 27,341 | ​ | ​ | (4,443) | ​ | ​ | (26,535) |

| Increase in accounts receivable and other assets | ​ | ​ | (425,983) | ​ | ​ | (103,327) | ​ | ​ | (103,162) |

| Cash paid for business combinations and assets acquisition, net of cash and restricted cash acquired | ​ | ​ | (192,015) | ​ | ​ | (908,567) | ​ | ​ | (75,704) |

| Proceeds from (investment in) unconsolidated entities, net | ​ | ​ | 2,665 | ​ | ​ | (144,323) | ​ | ​ | 1,296,699 |

| Proceeds from sale of real estate | ​ | ​ | 1,691,072 | ​ | ​ | 564,615 | ​ | ​ | — |

| Other investing activities, net | ​ | ​ | (42,671) | ​ | ​ | (47,006) | ​ | ​ | (59,085) |

| Net (payments on) proceeds from credit facilities | ​ | $ | (89,554) | ​ | $ | 162,111 | ​ | $ | (1,412,388) |

| Repayments on secured / unsecured debt | ​ | ​ | (990,968) | ​ | ​ | (2,928,924) | ​ | ​ | (1,915,301) |

| Payments of dividends and distributions | ​ | ​ | (1,379,198) | ​ | ​ | (1,239,318) | ​ | ​ | (996,766) |

| Other financing activities, net | ​ | ​ | (33,797) | ​ | ​ | (17,418) | ​ | ​ | (15,482) |

| Cash, cash equivalents and restricted cash at end of period | ​ | $ | 151,485 | ​ | $ | 123,652 | ​ | $ | 97,253 |

| ​ | ​ | 2021 | | ​ | 2020 | |

| Investments in unconsolidated entities | ​ | | 1,807,689 | ​ | | 1,148,158 |

| ​ | ​ | ​ | ​ |

| --- | --- | --- | --- |

[Index to Financial Statements](#INDEX_423931)

We have excluded from our overall assessment of the Company's internal control over financial reporting as of December 31, 2020, internal control over financial reporting associated with Interxion and subsidiaries' total assets of $12 billion and total revenues of $691 million.

We have excluded from our overall assessment of the Operating Partnership's internal control over financial reporting as of December 31, 2020, internal control over financial reporting associated with Interxion and subsidiaries' total assets of $12 billion and total revenues of $691 million.

_Change in Accounting Principle_

The Company has changed its method of accounting for leases as of January 1, 2019 due to the adoption of ASU No. 2016-02 _Leases_ and related accounting standards updates (collectively Topic 842).

The following are the primary procedures we performed to address this critical audit matter.

_Fair value measurement of customer relationship value and building and improvements acquired in the Interxion business combination_

As discussed in Note 3 to the consolidated financial statements, on March 9, 2020, the Company acquired Interxion Holding, N.V. (Interxion) in a business combination for total purchase consideration of $6,876 million.

In connection with the transaction, the Company recorded tangible and intangible assets and liabilities at fair value, including customer relationship value (CRV) and building and improvements.

The fair value of CRV and building and improvements was $1,002 million and $3,247 million, respectively, as of the acquisition date.

We identified the evaluation of the fair value measurement of CRV and building and improvements acquired in the Interxion business combination as a critical audit matter.

The recorded value of CRV and building and improvements was sensitive to changes to the inputs and assumptions in the purchase price allocation as of the acquisition date.

The inputs and assumptions that resulted in a higher degree of subjectivity and required complex auditor judgment related to CRV included the discount rate, projected revenue growth from existing customers, and the attrition rate.

The inputs and assumptions that resulted in a higher degree of subjectivity and required complex auditor judgement related to building and improvements included replacement cost new per square foot and estimated physical depreciation.

We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s valuation of CRV and building and improvements including controls related to the inputs and assumptions listed above.

We evaluated the Company’s inputs and assumptions listed above by: (1) identifying and considering the relevancy, reliability, and sufficiency of the sources of data used by the Company in developing these assumptions and (2) comparing to relevant industry market data if available or to historical Company data and (3) performing sensitivity analyses to understand the impact of changes in these assumptions on the fair value estimate.

In addition, we involved valuation professionals with specialized skills and knowledge, who assisted in evaluating: