Digital Realty, a data center REIT, is a key player in the AI buildout, with half of Fortune 500 companies as customers. AI investments are in early stages, with global spending expected to reach $375 billion this year. BlackRock CEO Larry Fink highlights the diverse investment opportunities in AI beyond just chips.

Digital Realty owns over 300 data centers worldwide, serving major companies like Microsoft and Amazon. The company currently has 2.8 gigawatts of computing capacity, with plans to expand to 7.5 gigawatts. CEO Andy Tower sees significant growth potential in the ongoing AI technology race. Quarter three earnings show revenue growth and increased net income for Digital Realty.

With a focus on increasing data center capacity, Digital Realty has committed over $900 million to capital expenditures. The company’s dividend payout, currently at $4.88 per share, appeals to income investors. Despite a 3% stock decline in 2025, Digital Realty’s growth potential in the expanding data center market remains promising.

Realty Income, a data center REIT, reports a 9% increase in data center revenue with a backlog of $852 million, mostly from AI-related bookings. The company plans to increase capital expenditures next year and has raised its guidance for the third consecutive quarter. Digital Realty Trust offers a unique combination of growth and income potential for investors in the AI space.

Read more at Yahoo Finance: AI Needs Data Centers, and Digital Realty Trust Delivers Them