Data Center REITs: Own The Real Estate Behind AI

Summary

• AI-driven demand is transforming data center REITs, with DLR and EQIX well-positioned despite recent volatility and short-term setbacks in 2025.
• Long-term secular growth remains intact, as AI use cases and power needs are set to expand dramatically through 2030, driving further rent and revenue growth.
• Recent disruptions, such as DeepSeek’s efficient AI model and Microsoft’s pullback, have created buying opportunities for active managers with conviction in the sector.
• We maintain a slight overweight to data center REITs, balancing optimism for AI-driven growth with prudent portfolio management.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DLR, EQIX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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