Digital Realty Trust (DLR)

Digital Realty Trust (DLR-N) is recognized as the No. 1 global data center REIT, primarily benefiting from the growth associated with AI and the construction of new data centers. The company's revenue model is based on long-term leases; however, growing trends of companies building their own facilities raise questions about demand sustainability. Despite this, Digital Realty stands out for its prime position in a growth cycle, trading at a discount relative to its intrinsic value. The anticipated boom in data center expansion over the next five years is bolstered by its adequate land and power transmission capabilities. The integration of AI across various sectors indicates potential operational efficiencies, making the data center space particularly exciting for investors in the long run.