Investors often focus on AI-related chipmakers and software companies, but real estate investment trusts (REITs) like Digital Realty are also benefiting from the AI boom. Digital Realty operates over 300 data centers and serves top clients like IBM and Oracle, making it a reliable play on the cloud and AI markets.

Digital Realty is a triple-net-lease data center REIT, with core funds from operations (FFO) per share expected to rise 9%-10% in 2025. Its occupancy rate is expected to increase, and the company is divesting older data centers for higher-growth opportunities. At $165 per share, it remains reasonably valued compared to high-growth AI stocks.

Consider investing in Digital Realty Trust for its lower valuation, steady dividend income, and growing demand for AI-ready data centers. While it may not be as exciting as other tech stocks, its long-term growth potential, partnerships, and overseas expansion make it a worthwhile investment opportunity.

Read more at Nasdaq: Forget Tech Stocks: The Real Estate Play That’s Cashing In on AI