Is DLR (Digital Realty Trust, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, DLR is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in DLR.

Digital Realty Trust, Inc. operates as a leading global real estate investment trust (REIT) specializing in data centers. Through its PlatformDIGITAL network, the company provides essential colocation and interconnection infrastructure, managing over 284 facilities across 23 countries to support major enterprise scaling. For Muslim investors, DLR currently holds a Doubtful compliance status based on AAOIFI standards. While the underlying business of leasing data center space is halal, the stock unfortunately fails the financial screening criteria due to its high debt load. The primary concern for Islamic finance practitioners is DLR's debt-to-market capitalization ratio, which stands at 36.2% and exceeds the permissible 33% limit. On a positive note, the company generates a highly compliant 0.00% interest income against its revenue, and maintains a safe cash-to-market cap ratio of 5.2%. Since the non-compliance is strictly tied to market capitalization fluctuations and debt levels rather than prohibited business activities, investors should monitor DLR's balance sheet. If the stock price appreciates significantly or the company pays down its interest-bearing debt, it could potentially cross back into Shariah-compliant territory. Digital Realty Trust, Inc. operates in the Real Estate sector under the REIT - Office industry and is headquartered in Dallas, TX, US. The company is led by CEO Andrew Power and employs approximately 3,936 people.

DLR was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. DLR passed 3 of these 4 screens.

DLR was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.