Digital Realty Expands Subsea Connectivity With New LA Cable Station
Digital Realty DLR is expanding its subsea infrastructure capabilities with plans to develop a new cable landing station (CLS) at its LAX12 data center in Los Angeles. The project, being developed in partnership with subsea infrastructure specialist Assured Communications, is intended to strengthen connectivity between Asia Pacific and North America by more closely integrating subsea and terrestrial networks.
The new facility will provide subsea cable operators with a turnkey solution for landing and powering their cable systems while giving them access to Digital Realty’s broader connectivity ecosystem in Los Angeles. By combining cable landing infrastructure, colocation and interconnection services, the CLS is expected to connect customers with a wide range of carriers, cloud providers and network operators across Digital Realty’s Los Angeles campus.
Assured Communications will support the design, engineering and construction of the project, leveraging its experience in subsea cable systems and landing infrastructure. The project is currently under development and is expected to begin supporting subsea cables in 2028.
Final Outlook on DLR
For Digital Realty, the project could deepen its value proposition beyond traditional data center capacity by bringing subsea connectivity directly into its platform. This can help DLR attract more carriers, cloud providers and content companies, increase interconnection and colocation demand across its Los Angeles campus and create additional cross-selling opportunities. Over time, the facility could also improve customer stickiness and strengthen Digital Realty’s competitive position as a global connectivity platform.
Over the past year, shares of this Zacks Rank #3 (Hold) company have gained 7.9% compared with the industry’s growth of 7.4%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Crown Castle Inc. CCI and OUTFRONT Media OUT, each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CCI’s 2026 FFO per share is pegged at $4.57, which indicates year-over-year growth of 4.8%.
The consensus estimate for OUT’s 2026 FFO per share has moved 1.3% upward over the past month to $2.32, calling for a rise of 16.6% year over year.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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This article originally published on Zacks Investment Research (zacks.com).
