Central Banks Shift to "Higher for Longer" Rates Amid Inflation: Rising interest rates generally increase borrowing costs for REITs like Digital Realty, potentially impacting expansion plans and making preferred shares less attractive compared to higher-yielding fixed-income alternatives.

Iran War Escalation Drives US Inflation to 3.3% / Strait of Hormuz Closure Sustains Oil Price Volatility: Elevated inflation can increase operating costs for data centers, including energy and construction, while oil price volatility can lead to unpredictable energy expenses, directly affecting profitability.

Growing Demand for Data Centers (AI, Cloud): The increasing adoption of cloud computing, artificial intelligence, and big data continues to drive demand for data center services, which positively influences Digital Realty's long-term prospects.