Key Facts on Data Centers and AI Investment
Digital Realty Trust, Equinix, and Prologis are major players in the data center industry, which has become increasingly vital due to a surge in AI investments. Equinix operates over 260 data centers across 36 countries, facilitating more than 500,000 interconnections, while Digital Realty serves primarily as a wholesaler for large-scale deployments, hosting over half of the Fortune 500 companies. Prologis, although the largest owner of logistics space with 1.3 billion square feet, is pivoting towards data centers, leveraging its substantial landholdings in prime locations.
In 2025, Equinix reported record gross bookings and projected double-digit revenue growth for 2026, contributing to a 10% surge in its stock. Digital Realty Trust recorded a 10% year-over-year increase in core funds from operations, while Prologis announced its best quarter for lease signings. Currently, Equinix trades at approximately 24 times funds from operations (FFO) with a 2% dividend yield, and Digital Realty has a similarly competitive valuation with a 2.8% yield. Prologis trades at about 21 times expected 2026 FFO with a 3.2% yield.
With hundreds of billions in anticipated data center investment over the next few years, these companies present an attractive opportunity for investors looking to capitalize on the AI boom at a favorable entry point.
