Digital Realty Trust (DLR)

Digital Realty Trust (DLR-N) stands out as a leading global data center REIT, primarily benefiting from the ongoing demand driven by AI advancements. While traditional models rely on long-term leases to generate recurring revenue, some companies are increasingly opting for in-house data center buildouts, potentially impacting DLR's market share. Nevertheless, DLR is well-positioned within this evolving landscape, particularly because it has both the necessary land availability and power transmission capabilities to support massive data center expansions in the coming years. Experts agree that the growing presence of AI in various sectors will inevitably influence real estate, particularly in operational efficiencies that could reduce costs for data center operators. Consequently, while DLR is a stable and less volatile investment akin to a landlord, experts suggest there may be better opportunities to capitalize on this growth narrative.