Reduced demand for data centers, decreasing rental rates, increased operating costs, competition, supply chain disruptions, inflation, customer defaults, political instability, cybersecurity breaches, integration difficulties, financing issues, and adverse market developments (including decreasing real estate valuations and impairment charges) are potential risks. The company's reliance on significant customers and its international operations also pose risks. There's also the risk of not meeting REIT requirements and potential legal issues.
Financial Upside
Strong demand for data center space in key metropolitan areas, potential for higher rental rates on renewals, and a growing development pipeline are positive factors. Acquisitions, joint ventures, and equity offerings provide opportunities for growth. The company's ability to re-lease expiring space at favorable rates and manage its capital structure effectively are also potential upsides.
