Digital Realty Trust (DLR)

Digital Realty Trust (DLR-N) is recognized as one of the leading global data center REITs. It benefits from a favorable growth narrative fueled by the increasing demand for AI infrastructure. While the company generates recurring revenue through long-term leases, it faces competition from companies building their own data centers. Nonetheless, it holds a competitive edge due to its land availability and power transmission capabilities. Experts highlight that AI's impact on real estate operations could lead to decreased operating costs, making data centers a promising investment area as expansion is expected to accelerate significantly over the next five years.