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Just For You
3 Ways to Play the Data Center Land GrabBy Nathan Reiff. Date Posted: 5/31/2026. 
Key Points
- Data center demand remains strong, and REITs with a focus on AI hold ever-growing portfolios of high-value data center real estate.
- Firms like Equinix and Digital Realty Trust have taken dominant positions operating hundreds of data centers around the world.
- A broader ETF like DTCR can provide access to data center real estate investments with semiconductor stocks as a bonus.
- Special Report: Elon Musk’s $1 Quadrillion AI IPO
Investor interest in the AI space continues to grow, with many focusing on AI infrastructure plays to meet rising demand for data centers or on semiconductor stocks that provide the components needed for AI platforms to function. One potentially overlooked area that is vital to AI but not directly related to the technology itself is land. Electricity consumption from data centers alone in the United States could triple that of the entire nation of Ireland by 2028, and generating that much power requires massive amounts of land. If demand continues at its current rate, investors may expect an increasingly contentious battle for prime land used by data center developers—space that is open and accessible, with strong power infrastructure, minimal natural disaster risk and other favorable attributes. Two real estate investment trusts (REITs) and an exchange-traded fund focused on data center real estate and development provide investors with exposure to this high-demand but underappreciated aspect of the AI boom. Equinix's Data Center Strategy Positions the REIT for Continued Growth
When the SpaceX IPO launches, most retail investors will be locked out. The banks, funds, and insiders get in early - while everyone else waits on the sidelines.
But one small infrastructure supplier - a critical piece Musk can't scale the Colossus network without - is still trading well under institutional radar. A new briefing reveals the name and ticker at no cost. Get the SpaceX infrastructure stock name and ticker here
Equinix Inc. (NASDAQ: EQIX) is a REIT focused specifically on data centers, operating more than 280 centers around the world. Shares are up about 40% year-to-date (YTD) but have essentially plateaued since late April. One reason for that is that the company's Q1 2026 results were, in some respects, less impressive than analysts had expected: revenue growth of 10% year-over-year (YOY), for example, was not as strong as anticipated. Still, there are plenty of reasons to be excited about Equinix and its advantageous position as data center demand grows. For one, recurring revenue is rising, as are adjusted EBITDA margin and adjusted funds from operations. In addition, management raised full-year guidance for revenue and EBITDA in the latest report. Equinix is also positioned to boost its capacity dramatically going forward, with plans for capital expenditures of up to $4.1 billion in 2026 on 46 major new projects. Backlog and bookings are both rising as well, demonstrating the company's ability to appeal to a growing list of customers. All of these signs point to future potential, and so it's no surprise that Equinix has broad appeal on Wall Street. 23 out of 29 analysts view the firm favorably and have assigned a Buy or equivalent rating. A Fast-Growing Data Center Dividend Yield PlayDigital Realty Trust Inc. (NYSE: DLR) takes a similar approach to Equinix, as it is a REIT that owns and operates data centers and provides colocation solutions. In terms of sales, its 16% YOY growth for Q1 2026 outpaced Equinix's performance. The firm also brought its total backlog to $1.8 billion during the quarter while achieving record interconnection bookings of $98 million. Management raised full-year guidance for funds from operations to between $8 and $8.10, representing growth of about 9% YOY at the midpoint. As a REIT, Digital Realty is obligated to pay out a majority of its earnings as dividends, and its 2.6% dividend yield may appeal to income-oriented investors while also outpacing Equinix on this metric. Like its larger rival, Digital Realty is favored by many analysts, as 21 out of 29 call DLR shares a Buy. The firm also has upside potential of more than 10% according to its consensus price target, even after already returning more than 20% YTD. A Data Center ETF, But Not a Pure-Play InvestmentFor investors not keen to pick individual names in the data center land grab, the Global X Data Center & Digital Infrastructure ETF (NASDAQ: DTCR) offers a convenient way to access multiple companies in a single investment. This ETF holds a portfolio of more than two dozen global firms with an interest in data center infrastructure. DTCR has positions in Equinix and Digital Realty Trust—indeed, these are the two largest holdings in the portfolio by percentage, representing close to a quarter of the total basket. It supplements these with a collection of other data center REITs, semiconductor manufacturers and digital infrastructure players. Investors should note that DTCR is not a pure-play data center real estate bet, given its chip-maker holdings. This makes it suitable for those looking for a broader play on AI infrastructure rather than a focus on land and property directly. Still, it provides a modest dividend yield of 0.7% as a bonus on top of YTD returns of about 50%. For an expense ratio of 0.50%—somewhat higher than most passively managed funds, but perhaps worthwhile given the unique theme—investors can leave the portfolio management to someone else while reaping the rewards to be found in the fast-growing AI infrastructure space. |
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