AI Data Center Backlash Could Benefit REITs, Analysts Say

According to CNBC, opposition to new artificial intelligence data centers could support real estate investment trusts that already own and lease data center space, even as protests, zoning limits and a New York moratorium slow some new projects. PwC projects annual data center spending will rise to $1.8 trillion in 2050 from roughly $800 billion in 2026, while Nareit said data center REITs account for 13% of the total U.S. REIT market capitalization of $1.5 trillion. The article said Digital Realty Trust, Equinix and Iron Mountain are the three data center stocks in the FTSE Nareit Equity REITs Index. Equinix has a market value of about $102 billion, a 1.99% dividend yield and is up about 37% year to date; Digital Realty Trust has a market cap of $71 billion, yields 2.59% and is up more than 23% in 2026; Iron Mountain has a 2.96% dividend yield, has gained 42% this year and has a market cap of $34.7 billion. Equinix recently signed a deal with Nvidia, and the company said its second-quarter adjusted funds from operations topped expectations when it reported results and raised full-year guidance in July. Digital Realty Trust also reported adjusted FFO above analyst estimates and lifted full-year guidance in July, while Iron Mountain said second-quarter AFFO beat expectations and it raised full-year guidance.