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Data Center REIT Stocks — Sector Analysis

Real Estate Sector

Data center REITs own and operate the facilities that house servers, networking equipment, and cloud infrastructure for hyperscalers, enterprises, and cloud providers. Equinix and Digital Realty are the two global leaders, with interconnected campuses in every major digital hub. The AI boom has created extraordinary demand for power-dense GPU data center space that is straining available power capacity in key markets. Hyperscaler colocation demand from AWS, Azure, and Google is driving record pre-leasing activity.

Key Drivers
AI compute demand and GPU cluster deployments
Power availability constraints in key data center markets
Hyperscaler capex plans for cloud infrastructure
Interconnection revenue growth from network density effects
Top Companies
EQIXEquinix
DLRDigital Realty
CORCoreSite Realty
SBACSBA Communications
AMTAmerican Tower
What to Watch

Pre-leasing rates and power under contract are the leading demand indicators. Watch megawatt capacity additions in pipeline. Power procurement constraints (utility interconnection queues) are becoming the primary limiting factor. Interconnection revenue per cabinet signals ecosystem density value.