Digital Realty Trust (DLR) will report second-quarter 2021 results on Jul 29, after the bell. The company’s quarterly results are expected to reflect year-over-year growth in revenues and funds from operations (FFO) per share.In the previous quarter, this data-center real estate investment trust (REIT) delivered a surprise of 5% in terms of FFO per share. The quarterly results were aided by decent leasing activities and strong signed total bookings.Over the last four quarters, the company outpaced the Zacks Consensus Estimate on all occasions, the average beat being 4.76%. This is depicted in the chart below:Digital Realty Trust, Inc. Price and EPS Surprise Digital Realty Trust, Inc. price-eps-surprise | Digital Realty Trust, Inc. QuoteLet’s see how things have shaped up for Digital Realty prior to this announcement.Factors to ConsiderThe demand for data-center space is likely to have been strong in second-quarter 2021. This is because surging growth in cloud computing, Internet of Things and big data, and greater call for third-party IT infrastructure are spurring demand for data-center infrastructure. Growth in artificial intelligence, autonomous vehicle and virtual/augmented reality markets has been creating a robust base for data centers too.Hence, being infrastructure providers for this rapidly-growing digital economy, data center providers such as Digital Realty, Equinix, Inc EQIX CyrusOne Inc. CONE and CoreSite Realty Corporation COR are well placed for sustainable growth.In the wake of the pandemic, data centers continue to benefit from the heightening reliance on technology. Demand and occupancy have been healthy in top-tier data-center markets, while new constructions are being absorbed at a fast pace. Hence, Digital Realty, with its PlatformDIGITAL, is anticipated to have capitalized on these tailwinds during the second quarter.Digital Realty also has a high-quality diversified customer base, comprising tenants from cloud, content, information technology, network, other enterprises, and financial industries. The majority of its tenants are investment-grade rated and numerous customers use multiple locations across the portfolio. This is likely to have provided the company with cash-flow stability, thereby driving top-line growth during the period in discussion.The Zacks Consensus Estimate for quarterly total revenues is pegged at $1.08 billion, indicating an 8.3% year-over-year jump.Moreover, it has been strengthening its portfolio on the back of expansions and development.In May, the company announced new data centers in downtown Toronto, Canada and Marseille, in a bid to boost its presence across the globe. Also, in April, it unveiled its largest data center facility, Digital Loyang II, in Singapore.Nevertheless, Digital Realty competes with several data-center developers, owners and operators, many of whom enjoy ownership of similar assets in locations same as Digital Realty. Given the solid growth potential in the data-center market, competition from other providers is expected to have intensified in the June-end quarter, prompting aggressive pricing policies. This might have curbed Digital Realty’s growth.Prior to the second-quarter earnings release, the company’s activities were inadequate to gain adequate analyst confidence. The Zacks Consensus Estimate for second-quarter FFO per share has been revised marginally downward to $1.58 in a week’s time. Nonetheless, it indicates year-over-year growth of 2.6%.What the Zacks Model UnveilsPer our quantitative model, Digital Realty has the right combination of two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher — for increasing the odds of a FFO beat this quarter.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Earnings ESP: Digital Realty has an Earnings ESP of +0.63%Zacks Rank: Digital Realty currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs. +1,500% Growth: One of 2021’s Most Exciting Investment Opportunities In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second. Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.Click here to download this report FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equinix, Inc. (EQIX): Free Stock Analysis Report Digital Realty Trust, Inc. (DLR): Free Stock Analysis Report CoreSite Realty Corporation (COR): Free Stock Analysis Report CyrusOne Inc (CONE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research