Digital Realty Inc.’s (NYSE: DLR) is the largest issuer of green bonds in the data center industry and one of the largest issuers among U.S. REITs. It has issued more than $7.2 billion in cumulative green bonds to date. Digital Realty’s use of green bonds not only supports the data center REIT’s continued growth but also ensures that its sources of capital align with ongoing sustainability priorities.
Bond proceeds have supported 130 sustainable projects, including 9.7 million square feet and 939 MW-IT of capacity certified under green building certifications. These projects have resulted in 2.9 million metric tons CO2e (carbon dioxide equivalent) savings, 3.8 terawatt-hours (TWh) energy savings, 2.9 TWh renewable energy savings, 2.0 billion gallons in water savings, and 40,000 cumulative construction jobs.
As a result of these achievements, and more, Digital Realty won Nareit’s 2024 Leader in the Light Award in the data center category for the eighth consecutive year. REITs receive the award in recognition of their leadership in carrying out sustainable and socially responsible investment and operating practices, good governance, and transparency.
With over 300 facilities in more than 25 countries, the REIT is among the world’s largest operators of data centers. That scale makes the reporting and disclosure of sustainability performance even more impactful.
In 2024, Digital Realty issued its seventh annual ESG report that aligned with Global Reporting Initiative (GRI) standards. It also performed its first-ever double materiality assessment, which involves moving beyond focusing on financial materiality to a broader view of the impact on stakeholders and society.
Digital Realty’s broad ESG goals are mapped to the UN Sustainable Development Goals. It reports progress towards its Science-Based Targets and also provides resilience disclosures aligned with the Taskforce for Climate Related Disclosures (TCFD) guidelines.
Positively Impacting the Built Environment
Aaron Binkley, vice president of sustainability at Digital Realty, cites the REIT’s use of green bonds for projects that accelerate energy efficiency — a big concern for operators of energy-hungry data centers — as a major achievement in the REIT’s ongoing quest to improve sustainability.
Binkley is a founding member and 2025 chair of Nareit’s Real Estate Sustainability Council. His duties at Digital Realty include addressing renewable energy, water conservation, energy conservation, sustainable construction, and corporate responsibility.
Binkley’s interest in sustainability has deep roots. Growing up on a small farm in Pennsylvania and spending time in nature taught him the importance of protecting natural resources. Early in his career, Binkley’s work in architecture taught him about the long-term impact of design and construction on people and the environment.
“These experiences helped spark my interest in a career focused on finding ways to positively impact the built environment,” Binkley says. “My roles in sustainability for leading global REITs have provided a platform for me to have a far-reaching and tangible impact, and there is always more that can be done.”
Looking ahead, Binkley is eyeing progress on renewable energy, water efficiency, and reporting and risk management requirements in 2025. These sustainability initiatives align with Time magazine naming Digital Realty to its 2024 list of the World's Most Sustainable Companies.
Those initiatives also build on recent sustainability accomplishments, such as constructing a 120-megawatt, utility-scale solar power plant in South Africa and the development of an artificial intelligence platform to improve energy efficiency and improve Power Usage Effectiveness (PUE) which earned Digital a 2024 winner of Nareit’s Sustainability Impact Award in the sustainable design category.
“I’m gratified to see how many REITs have adopted strong sustainability programs that are delivering positive real-world impact,” he says, “and that Nareit continues to be steadfast in recognizing the importance of sustainability for our industry.”
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