You can’t scroll through a financial news feed today without seeing a headline about a major market segment, be it tech or industrials, getting completely reshaped by artificial intelligence.
“A few years ago, data centers were built mainly to store files and run software,” says Tejas Dessai, director of thematic research at Global X ETFs, which manages the Data Center & Digital Infrastructure ETF (ticker: DTCR). “Today, they are being redesigned as AI factories that run advanced workloads around the clock.”
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Think of it this way: AI is the brain, and the data center is the nervous system. The explosive growth of AI has created an insatiable demand for powerful data centers.
The challenge, Dessai says, is keeping up with this demand, especially when building new data centers is becoming more difficult “due to permitting hurdles, power delays and grid infrastructure bottlenecks.” This supply-demand imbalance is intensified by the fact that “AI is expected to drive an explosion in data creation, so storing and processing that data will require substantial new data center capacity,” he says.
For investors, that supply-demand imbalance could create an opportunity in existing data center companies. Dessai says many established data center REITs have “embedded pricing upside” because “older contracts were signed below the rates that AI-ready capacity can command today. As those contracts roll over, these companies can reprice that capacity toward current market rates.”
How to Invest in Data Centers and Hyperscalers
If you’re seeking the clearest, most direct way to invest in the AI revolution, you need to look beyond the graphics processing unit (GPU) makers and go straight to the powerhouse infrastructure that makes AI possible: data centers.
“Investors typically get exposure to AI through a handful of mega-cap technology names,” Dessai says. “But there is a lot more to the AI infrastructure story.”
Companies are increasing their data center spending so fast, it’s difficult to keep up with current estimates. Technology research firm Gartner expects data center spending to reach $822 billion in 2026, a 62.5% increase from 2025. That kind of spending is bound to have huge knock-on effects across the economy. Building new data centers and upgrading old ones involves the industrials, materials, utilities, energy, real estate, communications and technology sectors. Nearly the entire market is — directly or indirectly — benefiting from the ongoing data center boom.
Not just any data center stock, exchange-traded fund or real estate investment trust will do, however. Here are seven of the best data center stocks, ETFs and REITs to buy now:
| STOCK, ETF OR REIT | MARKET CAPITALIZATION | FORWARD DIVIDEND YIELD |
| Digital Realty Trust Inc. (DLR) | $71 billion | 2.6% |
| Equinix Inc. (EQIX) | $103 billion | 1.9% |
| Eaton Corp. PLC (ETN) | $160 billion | 1.1% |
| Arista Networks Inc. (ANET) | $238 billion | N/A |
| Vertiv Holdings Co. (VRT) | $98 billion | 0.1% |
| Constellation Energy Corp. (CEG) | $97 billion | 0.6% |
| iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT) | $503 million* | 1.0%** |
*Net assets, rather than market capitalization, are listed for this fund.
**30-day SEC yield.
Digital Realty Trust Inc. (DLR)
Digital Realty is a global REIT that claims to be the world’s largest data center platform. Its PlatformDigital spans more than 300 data centers globally and serves over half of Fortune 500 companies, encompassing Amazon Web Services (AWS), Microsoft Azure and Google Cloud.
The company started 2026 strong with revenue increasing in both the first and second quarters year over year. It also signed two hyperscale leases in the second quarter, which will bring in about $205 million a year in rent for Digital Realty. This is on top of total signed bookings that should generate another $208 million per year for the company.
Equinix Inc. (EQIX)
With a market cap of over $100 billion and 281 data centers on six continents, Equinix is one of the largest REITs in the world. Its centers act as a neutral “meet-me room” where the world’s major networks, cloud providers — such as AWS, Microsoft Azure and Google Cloud — and enterprises physically and virtually connect.
Equinix also had a strong start to 2026, with double-digit recurring revenue growth and improved margins. The second quarter was so strong, in fact, that management raised its 2026 financial outlook.
Eaton Corp. PLC (ETN)
Eaton is an intelligent power management company that supplies the equipment that keeps data centers running. The intelligence component comes from using tech and data to improve efficiency and reduce operating costs. Its products include backup power and electrical systems, data cables and electronic components.
Eaton has had a record-breaking start to 2026. Second-quarter sales grew 21% year over year to a record $8.5 billion. CEO Paulo Ruiz also said “data centers remain a key growth driver” in the company earnings release, noting that Eaton is benefiting from “robust demand.” All of this led the firm to raise its full-year organic growth guidance.
[Read: 5 Best-Performing AI Stocks of 2026]
Arista Networks Inc. (ANET)
Arista provides networking equipment that connects users and data centers to the cloud. In short, it keeps the data flowing so AI and cloud apps can run. This is understandably becoming a high-demand industry.
Arista reported second-quarter revenue of over $3 billion, marking its first $3 billion quarter and a 37.7% increase year over year. And management expects even stronger revenue in the third quarter. In June, the company also introduced a new generation of networking switches built specifically for large AI installations. The systems support faster data connections while using technologies with lower power consumption, something that’s becoming increasingly important as AI data centers devour more and more electricity.
Vertiv Holdings Co. (VRT)
Vertiv provides the power, cooling and service infrastructure that keeps data centers running. Its systems are becoming more important as AI servers use more power and generate more heat.
The company kicked off fiscal year 2026 with strong momentum. Net sales rose 24% year over year in the second quarter, while adjusted operating profit surged by 51%. Vertiv expects $14 billion in net sales for the year, suggesting 31% organic growth.
For investors, VRT is a picks-and-shovels play on AI data centers. It may be less glamorous than semiconductor chips, but it’s essential to make those chips usable at scale.
Constellation Energy Corp. (CEG)
Constellation Energy offers a different strategy to play the data center boom by investing directly in the electricity needed to run the centers. As the world’s largest producer of clean and reliable energy and the largest nuclear power company in the U.S., it is well equipped to fuel the massive systems inside data centers.
In February, the company announced an agreement with global data center developer CyrusOne to support a new data center in Texas. Under the agreement, Constellation will provide 760 megawatts for the new center. This, combined with the 400-megawatt agreement signed last year, means that Constellation now has 1,160 megawatts under contract for CyrusOne data centers in Texas. It’s no surprise, then, that management raised its full-year guidance after a strong second-quarter earnings report.
iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT)
Often, the best approach to investing is a diversified one. If you want exposure to the data center boom without betting on only one or a few stocks, IDGT is for you. The U.S.-listed ETF holds 25 data center, telecom and communications infrastructure companies, including many of the ones on this list.
About 18% of the fund is invested in data center REITs, while another roughly 29% is in communications equipment and just under 19% is in telecom tower REITs. This broader approach means IDGT isn’t a pure-play data center fund, but that also means investors can benefit from the broader AI and cloud infrastructure demand. Note that the fund charges a 0.37% expense ratio.
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7 Best Data Center Stocks, ETFs and REITs originally appeared on usnews.com
Update 08/24/26: This story was published at an earlier date and has been updated with new information.
7 Best Data Center Stocks, ETFs and REITs 2026
IUSTITIA.BG – Investigations 2009-2026 2026-08-24 21:39:08
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