Data Center REITs
What Are Data Center REITs?
Data Center Real Estate Investment Trusts (REITs) own and lease facilities that power cloud computing, AI, and enterprise IT. These REITs generate revenue by renting space, power, and connectivity to tech giants, government agencies, and businesses. With growing demand for digital services, data center REITs are a critical part of the expanding technology sector.
Why Invest?
Data center REITs offer strong growth potential, driven by rising demand for cloud storage, AI applications, and streaming services. Long-term leases with major tech firms ensure stable revenue, while increasing digitalization makes data centers essential. Investors benefit from exposure to both real estate and technology.
Challenges & Outlook
Despite strong demand, data center REITs face rising energy costs, regulatory challenges, and competition from hyperscale providers. However, the expansion of AI, 5G, and IoT continues to drive long-term growth, making these REITs a compelling investment in the digital economy.
| Ticker Symbol | Company Name | Property Sector | Market Cap ($B) | Dividend Yield | Payout Frequency | Price-to-FFO | Debt Ratio | Short Interest | |
|---|---|---|---|---|---|---|---|---|---|
| DLR | Digital Realty |  | Data Center | 41.91 | 3.60% | Quarter | 20.6 | 38% | 4.9% |
| EQIX | Equinix |  | Data Center | 75.89 | 2.11% | Quarter | 25.9 | 22% | 1.8% |
| IRM | Iron Mountain |  | Diversified & Specialty | 19.27 | 3.94% | Quarter | 22.1 | 48% | 3.9% |
| DBRG | Digital Bridge |  | Data Center (Non-REIT) | 2.70 | 0.24% | Quarter | 40.0 | -- | 10.3% |
