Nearly One in Four Digital Realty Shareholders Back NorthStar Proposal on Water Risk

FOR IMMEDIATE RELEASE

22.5% vote signals growing investor concern over AI’s water demands at one of the world’s largest data center REITs

Boston, MA, June 9, 2026. A notable 22.5% of Digital Realty Trust (“DLR”) shareholders voted Wednesday in favor of a NorthStar Asset Management proposal requesting that the company disclose region-level water risk metrics across its portfolio. The vote, representing roughly $13.2 billion in share value and cast against board recommendation, marks a turning point: water risk at data centers is no longer a peripheral ESG concern. It is a portfolio risk.

Artificial Intelligence (“AI”) is driving an unprecedented surge in data center water demand. By 2027, AI-related water withdrawals are projected to reach the equivalent of California’s total annual water use, with U.S. data center consumption by 2028 forecast at two to four times the 2023 level. Digital Realty sits at the center of this demand curve: as of Q3 2025, AI accounted for 50% of DLR’s bookings, with larger capacity blocks expected through 2026 and 2027. The company’s own 10-K calls water scarcity “the greatest interruption risk” to its operations, yet reports water performance only in aggregate, masking where in its portfolio that risk is actually concentrated.

“When nearly a quarter of shareholders vote against the board on a water disclosure resolution, those are long-term institutional investors saying they can’t properly evaluate this company’s risk profile without better data.”

— Julie Goodridge, CEO, NorthStar Asset Management

The stakes extend well beyond disclosure. Data centers draw potable water for cooling, putting them in direct competition with surrounding communities. The Carbon Disclosure Project (“CDP”) estimates $15.5 billion in assets are already at risk from community opposition and regulatory changes tied to water stress. Since mid-2024, that opposition has blocked $18 billion and delayed another $46 billion in U.S. data center projects. In 2026, legislators in at least 12 states filed moratorium bills on new data center construction, and Florida’s Commerce Secretary opposed a $2.6 billion hyperscale AI data center citing material risks to the local water supply. Regional disclosure would give shareholders a precise picture of where water stress poses the greatest operational and financial risk to the portfolio.

The disclosure gap is difficult to justify. DLR already conducts annual regional water stress assessments internally, and its European portfolio (roughly 36% of its global footprint) reports water footprint data annually under the EU Energy Efficiency Directive. Peers CyrusOne and Equinix publish regional and site-level water data as standard practice. Digital Realty isn’t being asked to build something new. It’s being asked to share the data it already collects.

“NorthStar has been engaging companies on water since 2008, when our engagement led to PepsiCo becoming the first publicly traded multinational to adopt a Human Right to Water policy, given the disproportionate impact water-intensive operations have on communities depend on the same supply. The World Economic Forum has ranked the water crisis among the top five global risks every year for the past decade. AI’s water demands are magnifying this risk, creating material risks for industries dependent on water as well as for their shareholders, which is precisely why enhanced water disclosure is no longer optional.”

— Whitney Nguyen, CFA, Director of Impact Research, NorthStar Asset Management

As water risk moves from environmental disclosure to financial materiality, NorthStar’s Drinking From an Empty Cup: An Investor Toolkit for Addressing AI’s Growing Water Demands offers investors a roadmap for what questions to ask, which metrics matter, and how to hold companies accountable. The Digital Realty vote suggests the market is starting to agree.

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About NorthStar Asset Management

NorthStar Asset Management, Inc. is a wealth management firm based in Boston with a focus on socially responsible investing. Founded in 1990, NorthStar uses shareholder activism to drive corporate accountability while managing portfolios for individuals, families, and institutions. The firm is a certified B Corporation, employee owned, and UN PRI Signatory.

Advisory services offered through NorthStar Asset Management, Inc., a registered investment adviser. Registration does not imply any level of skill or training. All investing involves risk, including the possible loss of principal. This material is for informational purposes only and does not constitute personalized investment advice or a recommendation or solicitation of any particular security, strategy, or investment product. Forecasts, opinions, and estimates reflect NorthStar’s judgment as of the date of this release and are subject to change without notice. Third-party statistics are believed to be reliable but have not been independently verified.

Additional information regarding NorthStar, including fees, expenses, and risks of investment, is contained in NorthStar’s disclosure documents and should be reviewed carefully and can be accessed via https://adviserinfo.sec.gov/

For more information, visit northstarasset.com or email investforchange@northstarasset.com