Interest Rate Environment: The 'Higher for Longer' interest rate policy by central banks can negatively impact REITs like Digital Realty by increasing borrowing costs for acquisitions and development, and making their dividend yields less attractive compared to fixed-income alternatives.

Inflationary Pressures: Elevated US inflation (3.3% as per context) can lead to increased operating expenses for data centers, including energy, labor, and construction costs for new facilities, potentially compressing profit margins.

Global Economic Uncertainty and Geopolitical Tensions: Escalation of conflicts, such as the Iran War and Strait of Hormuz closure, contributes to global economic uncertainty and oil price volatility. While not directly impacting data center demand, it can create a cautious business environment, affect capital expenditure decisions by customers, and potentially increase supply chain costs for equipment and construction.