Executive Summary / Key Takeaways

• Unrivaled Digital Infrastructure Platform: DigitalBridge Group, Inc. (NYSE:DBRG) stands as a leading global alternative asset manager, uniquely positioned across the entire digital infrastructure ecosystem, including data centers, cell towers, fiber, small cells, and edge infrastructure. Its multi-strategy platform and deep operational expertise provide a significant competitive moat in the rapidly expanding AI-driven economy.
• Strategic "Power Bank" Dominance: With over 20 gigawatts of secured power across its data center portfolio, DigitalBridge possesses an unparalleled "power bank" – a critical differentiator in the AI era. This advantage is translating into record data center leasing, substantial capital formation, and embedded long-term value creation.
• Robust Financial Performance and Growth Trajectory: DigitalBridge delivered strong Q3 2025 results, with fee revenues up 22% year-over-year to $93 million and Fee-Related Earnings (FRE) surging 43% to $37 million, reflecting expanding margins. The company surpassed its $40 billion Fee Earning Equity Under Management (FEEUM) target a quarter early, reaching $40.7 billion.
• Diversified Capital Formation and Innovation: Beyond its flagship funds, DigitalBridge is strategically expanding into new high-growth areas like digital energy (Takanock), stabilized data centers, and private wealth, leveraging partnerships like Franklin Templeton (BEN) to access new capital pools and drive future growth.
• Significant Embedded Value and Future Realizations: The company's 5.4 gigawatts of data center capacity, either built or under construction, represents over $50 billion in total investment and approximately $1 billion in potential future carried interest, signaling substantial long-term value for shareholders, with meaningful realizations anticipated in 2026-2027.

The Foundation of Digital Dominance: A Multi-Strategy Ecosystem Approach

DigitalBridge Group, Inc. (NYSE:DBRG) has meticulously transformed itself into a preeminent global alternative asset manager, singularly focused on the digital infrastructure that underpins the modern economy. With a heritage spanning over three decades in building and operating critical infrastructure, DigitalBridge has cultivated a multi-strategy platform encompassing flagship value-add digital infrastructure equity, core equity, credit, liquid securities, and mid-market infrastructure. This comprehensive approach positions the company to capitalize on the profound secular tailwinds of AI, electrification, and connectivity, which are driving an estimated $94 trillion global infrastructure need by 2040.

The company's overarching strategy, encapsulated by "Fundraise, Invest, and Scale," is deeply customer-centric, adhering to a "follow the logos" investment model. This ensures capital deployment directly aligns with the escalating demands of hyperscalers, enterprises, and governments. A cornerstone of this strategy, and a significant technological differentiator, is DigitalBridge's formidable "power bank." With over 20 gigawatts of total secured power across its data center portfolio, this represents actual, accessible power, not mere projections. This critical advantage has enabled record leasing activity, translating directly into new capital formation, fee revenues, and long-term value creation.

In a competitive landscape increasingly populated by both specialized players and generalist investors, DigitalBridge's diversified portfolio and multi-platform approach provide a distinct edge. While some competitors may excel in specific niches, DigitalBridge's ability to offer integrated solutions across data centers, cell towers, fiber networks, small cells, and edge infrastructure allows it to serve the full spectrum of AI infrastructure demand globally. This strategic breadth, coupled with deep operational expertise, positions DigitalBridge to navigate market dynamics and deliver solutions at a scale few can match.

Strategic Evolution and Technological Edge

DigitalBridge's journey from its early infrastructure building roots in the 1990s to its current pure-play digital infrastructure focus has been marked by strategic acquisitions and capital events. Key milestones include the 2015 acquisition of its former manager's investment management business, the 2019 merger with Digital Bridge Holdings, and the 2023 acquisition of InfraBridge. These moves have shaped a platform capable of attracting significant institutional capital, as evidenced by record fundraising of $9 billion in 2024, which propelled Assets Under Management (AUM) past $100 billion in Q2 2025.

The company's technological and operational differentiators are central to its competitive moat. The "power bank" is perhaps the most critical. In Q3 2025, DigitalBridge leased a record 2.6 gigawatts across its data center portfolio, representing one-third of total U.S. hyperscale leasing for the quarter. This achievement underscores the strategic value of having pre-secured power and permits, allowing the company to deliver capacity within an 18-month framework, often at premium pricing. This capability is particularly vital as global data center electricity consumption is projected to more than double by 2030, and the incremental power required for AI alone is estimated at $1.3 trillion.

DigitalBridge is actively expanding its technological leadership through new initiatives. The launch of Takanock, a digital energy strategy with a $500 million commitment alongside ArcLight, exemplifies this. Takanock's core technology involves developing "powered land" and on-site dispatchable power solutions. This directly addresses the "time to power" bottleneck for hyperscalers, accelerating AI deployments by providing prime power immediately and transitioning to grid support later. Takanock's pipeline includes over 1,600 acres, with potential for nearly 3 gigawatts of IT capacity and over 5 gigawatts of generation capacity. This strategy offers high-teens to low-20s returns by monetizing powered land, providing quicker capital returns compared to traditional data center development.

Across its 11 data center platforms, including Vantage, Switch, DataBank, and the recently acquired Yondr, DigitalBridge caters to diverse workloads from hyperscale GPU compute to private cloud, enterprise colocation, and edge infrastructure. Notable projects like Vantage's $25 billion Texas "Frontier" Mega-Campus (1.4 gigawatts) and the $15 billion-plus Wisconsin "Lighthouse" campus (1 gigawatt) are pre-leased and contracted, demonstrating the company's ability to deliver giga-scale AI infrastructure. Frontier, for instance, represents the largest behind-the-meter power development in the U.S.

In fiber, the Zayo acquisition of Crown Castle's fiber business for $4.5 billion significantly expanded Zayo's scale by over 50%, adding 90,000 route miles to its existing 147,000. This accretive transaction enhances Zayo's position for high-speed, low-latency dark fiber routes critical for AI and inference workloads. Similarly, in mobile infrastructure, Vertical Bridge (now the third-largest U.S. tower portfolio after acquiring 6,300+ Verizon (VZ) towers) and other global tower companies are experiencing a resurgence. With 80% of AI traffic expected on wireless devices, the demand for mobile infrastructure, including small cells (projected to double to 2 million nodes in the U.S. in five years), is accelerating. DigitalBridge's integrated ecosystem approach, spanning these diverse asset classes, ensures it captures value across the entire AI delivery mechanism.

Financial Performance and Strategic Outlook

DigitalBridge's financial performance in Q3 2025 underscored its strategic execution. Fee revenues climbed 22% year-over-year to $93 million, contributing to a 43% surge in Fee-Related Earnings (FRE) to $37 million. This robust growth reflects continued margin expansion, with the LTM FRE margin reaching 38% as of Q3 2025. Distributable Earnings (DE) doubled year-over-year to $22 million in Q3 2025, although Q2 2025 saw a negative DE of $19 million due to a $40 million realized loss from an InfraBridge fund investment, which had no impact on FRE or cash flow. While carried interest allocation saw a $20 million reversal in Q3 2025 due to the "J-curve" effect in early-lifecycle funds, the company's full-year 2024 net carried interest revenue was a positive $46.6 million.

The company's Fee Earning Equity Under Management (FEEUM) reached $40.7 billion by Q3 2025, surpassing its $40 billion target a quarter early. This growth was fueled by $4.1 billion in capital raised year-to-date Q3 2025, primarily for its third flagship value-add strategy and co-investment vehicles. Co-investment fee rates have expanded to 70 basis points in Q3 2025, up from a historical average of 45 basis points, reflecting the high-margin incremental revenue generated from these partnerships. DigitalBridge maintains a strong liquidity position, with $173 million in available corporate cash as of September 30, 2025, and $54 million in warehouse investments for new strategies.

Looking ahead, DigitalBridge has reaffirmed its 2025 guidance, targeting FEEUM exceeding $40 billion, FRE growth of 10-20% year-over-year, and a 200 basis point improvement in FRE margins. Management anticipates a front-loaded performance in 2025 due to expected catch-up fees. The firm is finalizing its flagship fund capital formation (targeting over $7 billion) and is strategically pivoting to new offerings in power, stabilized data centers, and private wealth to drive 2026 capital formation. The partnership with Franklin Templeton for a private wealth distribution channel is expected to provide evergreen capital and earlier carried interest realization. DigitalBridge's 5.4 gigawatts of data center capacity under construction or built represents an embedded $1 billion in potential future carried interest, with meaningful realizations from 2019 vintage funds expected in 2026-2027. The company plans to deploy approximately $20 billion into AI infrastructure in 2025, further solidifying its leadership.

Competitive Landscape and Strategic Differentiation

DigitalBridge operates in a highly competitive and capital-intensive industry, facing rivals such as Equinix (EQIX), Digital Realty Trust (DLR), American Tower Corporation (AMT), and Crown Castle International Corp. (CCI). While competitors like EQIX and DLR are formidable in specialized data center operations, and AMT and CCI dominate wireless infrastructure, DigitalBridge's core competitive advantage lies in its diversified, multi-platform, and integrated ecosystem approach.

DigitalBridge's "power bank" of over 20 gigawatts is a critical differentiator, enabling it to secure record data center leasing and outpace competitors in delivering large-scale AI infrastructure. Marc Ganzi emphasizes that in today's environment, "if you don't have a power bank, you really can't have a conversation in terms of leasing megawatts and gigawatts." This contrasts with "amateur and a lot of tourists" entering the market who lack the long-term track record of execution and reliable delivery that DigitalBridge's 11 data center platforms offer. The company's ability to serve diverse workloads—from hyperscale GPU compute with Vantage and Yondr to private cloud with Switch and edge inferencing with DataBank—provides a breadth of solutions that few rivals can match.

Financially, DigitalBridge's FEEUM and FRE growth rates are competitive. Its LTM FRE margin of 38% (33% excluding catch-up fees) demonstrates strong profitability. While direct comparisons of all financial metrics are complex, DigitalBridge's P/E ratio of 38.88, P/S of 9.98, and P/B of 1.08 suggest a potentially undervalued position compared to peers like EQIX (P/E 76.10, P/B 5.76) and DLR (P/E 43.16, P/B 2.55), especially given its growth trajectory and strategic positioning in high-demand AI infrastructure. The company's focus on high-margin co-investments (up to 70 basis points) further enhances its financial profile.

DigitalBridge's strategic initiatives, such as Takanock and the stabilized data center strategy, create new "swim lanes" of investable opportunity that competitors have largely overlooked. This proactive approach to addressing bottlenecks like power and tapping into new capital pools (e.g., real estate allocators) further solidifies its market position. The company's deep operational experience and trusted relationships with customers, built over decades, also serve as a significant barrier to entry for new players, ensuring it remains a preferred partner for critical infrastructure deployments.

Conclusion

DigitalBridge Group, Inc. is a compelling investment opportunity, strategically positioned at the epicenter of the AI-driven digital infrastructure boom. The company's core investment thesis is anchored in its diversified, multi-strategy platform, unparalleled "power bank," and proven ability to "Fundraise, Invest, and Scale" across the entire digital ecosystem. Recent financial performance, marked by double-digit revenue and FRE growth, expanding margins, and early achievement of FEEUM targets, demonstrates strong execution against its strategic roadmap.

Looking forward, DigitalBridge's robust pipeline of data center capacity, coupled with its innovative digital energy and private wealth initiatives, promises significant embedded value and future carried interest realizations. While market volatility and the episodic nature of carried interest present risks, the company's global diversification, long-term contracts, and technological leadership in addressing critical infrastructure bottlenecks provide resilience. DigitalBridge's unique competitive positioning, offering integrated solutions and deep operational expertise across all facets of digital infrastructure, makes it a differentiated leader poised for sustained growth in the evolving AI economy.