Investor interest in the AI sector is shifting towards infrastructure, particularly data centers and the land required for their expansion. As electricity consumption from U.S. data centers is projected to triple that of Ireland by 2028, the demand for land with reliable power infrastructure is expected to intensify. This trend highlights the importance of real estate investment trusts (REITs) like Equinix and Digital Realty Trust, which are positioned to capitalize on this growing need.

Equinix, which operates over 280 data centers globally, has seen its stock rise about 40% year-to-date, despite a plateau since April due to Q1 2026 results falling short of expectations. However, the company’s increased revenue guidance and substantial capital expenditure plans signal robust future growth. Digital Realty Trust has also demonstrated strong performance, with a 16% year-over-year sales growth and a solid dividend yield of 2.57%, making it an attractive option for income-focused investors.

For those looking to diversify their exposure to the AI infrastructure boom, the Global X Data Center & Digital Infrastructure ETF offers a broader investment strategy, holding stakes in both Equinix and Digital Realty. This ETF provides a convenient way to tap into the growing demand for data center infrastructure while also including semiconductor companies, appealing to investors seeking a comprehensive play on the AI landscape.

Source: marketbeat.com