July 24 (Reuters) - Digital Realty Trust ( DLR ) raised

its annual revenue and core funds from operations forecast on

Thursday, as it expects an increase in demand for data center

services due to businesses accelerating digital transformation

efforts.

Austin, Texas-based Digital Realty ( DLR ) has benefited from a

surge in demand as enterprises upgrade and outsource their IT

infrastructure, further boosted by advancements in artificial

intelligence technology.

The company is well positioned as a major beneficiary of Al

and cloud megatrends, with strong demand driving improved

volumes and pricing.

Analysts expect strong growth in data center activity

through 2025, as increased infrastructure investment is plowed

towards enhancing computing power for future AI

implementations.

Digital Realty ( DLR ) leases out managed data centers to clients in

sectors that range from cloud and information technology to

social networking, communications and manufacturing.

The real estate investment trust now expects revenue between

$5.93 billion and $6.03 billion for the year, compared with its

earlier projection in the range of $5.83 billion and $5.93

billion.

It forecast annual core FFO in the range of $7.15 to $7.25

per share, up from its earlier outlook of between $7.05 and

$7.15 apiece.

For the second quarter ended June 30, Digital Realty ( DLR ) posted

revenue of $1.49 billion, compared with estimates of $1.45

billion, according to data compiled by LSEG.