economy
These ‘underappreciated winners of AI’ also pay solid income
These real estate investment trusts offer exposure to artificial intelligence. Wall Street sees upside ahead.
TL;DR
- Data center REITs are companies that own and manage facilities housing IT infrastructure, benefiting from AI demand.
- Analysts consider data center REITs 'underappreciated winners' of the AI economy, acting as 'toll booths' for AI interactions.
- The sector has seen strong performance, with data center REITs up nearly 40% year to date as of April 30.
- Key players mentioned include Equinix, Digital Realty Trust, and Iron Mountain, with Blackstone Digital Infrastructure Trust recently joining the public market.
- Data center REITs provide stable income through rent from existing, nearly fully occupied facilities, with the added potential for AI-driven development.