The demand for data centers is surging due to increased AI use. Fermi America, co-founded by Rick Perry, filed to go public as a real estate investment trust aiming for a $13 billion valuation. The company’s campus in Texas will house AI data centers powered by 11 gigawatts of energy. However, data center REITs face challenges like long contract durations and dividend requirements. Despite being key players in the AI boom, data center REITs have not seen the massive returns of other AI infrastructure investments. The unique characteristics of real estate investing, such as long-term leases and dividend requirements, hinder the rapid growth of data center REITs compared to other AI infrastructure providers like hyperscalers and chipmakers. Data center REITs are also more sensitive to interest rates, which could impact their growth potential in the future.

Read more at Yahoo Finance: A New Data Center Stock Is Coming To Wall Street, But Can It Soar on AI Hype?