To The Moon

Data centers, server farms, and communication towers fall under the category of tech infrastructure, often referred to as tech architecture. The demand for tech infrastructure is expected to keep growing over the next few years.

Emerging technologies like cloud computing, AI, 5G, VR, blockchain, and smart devices are driving unprecedented demand for related products, services, and for the real estate that can house all the hardware they use.

The reason for this surge is simple: more digital communication means more data generation, and this data needs to be processed and stored indefinitely. This requires millions of computers, servers, and towers, all needing dedicated spaces, power, and cooling systems. This is where data centers and tech infrastructure companies come in.

Investors can't ignore the ongoing boom in data centers and related stocks. The tech industry is a cornerstone of the global economy with no signs of slowing down. It’s clear that REITs providing rental space to tech companies, as well as companies supplying hardware and equipment, will see significant growth in the coming years.

To help investor make informed decisions and seize opportunities in this crucial digital infrastructure sector, here are seven top data center stocks, REITs, and ETFs you might want to consider.

1. $Equinix(EQIX)$

With a $78 billion market cap, Equinix is a leading data center and software company. It serves a broad range of industries, including cloud computing and finance, and is expected to see revenue growth from $8.7 billion in 2024 to $9.4 billion in 2025. The stock offers a 2% dividend yield.

2. $Iron Mountain(IRM)$

Established in 1951, Iron Mountain has a $32 billion market cap. Initially focused on document storage, it expanded into digital data centers in 2017. Known for its high security, IRM’s data centers are popular with regulated industries. The stock has a 2.4% dividend yield.

3. $PACER DATA & INFRASTRUCTURE REAL ESTATE ETF(SRVR)$

This $464 million ETF targets data centers and digital infrastructure REITs. Launched in 2018, it offers global diversification but excludes emerging markets. The ETF has a 3.8% dividend yield and a 0.55% expense ratio.

4. $Global X Data Center & Digital Infrastructure ETF(DTCR)$

A newer ETF with $89 million in assets, DTCR invests in diverse digital infrastructure segments, including AI and smart grid technology. It has a 1.3% dividend yield and a 0.50% expense ratio.

5. $Digital Realty Trust Inc(DLR)$

Digital Realty, with a $49 billion market cap, operates data centers across 25 countries. Known for its comprehensive data management solutions, it’s expected to grow revenue from $5.6 billion in 2024 to $6 billion in 2025. The stock yields 3.3%.

6. $Real Estate Select Sector SPDR Fund(XLRE)$

A $6.6 billion ETF, XLRE provides broad exposure to REITs, including data centers. As of June 30, it had significant investments in top data center REITs, offering a 3.3% dividend yield.

7. $SBA Communications Corp(SBAC)$

SBA Communications, with a $23 billion market cap, owns various tech properties, including cell towers and data centers. It’s projected to see strong earnings growth, with a 1.7% dividend yield.