You can’t scroll through a financial news feed today without seeing a headline about a major market segment, be it tech or industrials, getting completely reshaped by artificial intelligence.
“A few years ago, data centers were built mainly to store files and run software,” says Tejas Dessai, director of thematic research at Global X ETFs, which manages the Data Center & Digital Infrastructure ETF (ticker: DTCR). “Today, they are being redesigned as AI factories that run advanced workloads around the clock.”
[Sign up for stock news with our Invested newsletter.]
Think of it this way: AI is the brain, and the data center is the nervous system. The explosive growth of AI has created an insatiable demand for powerful data centers.
The challenge, Dessai says, is keeping up with this demand, especially when building new data centers is becoming more difficult “due to permitting hurdles, power delays and grid infrastructure bottlenecks.” This supply-demand imbalance is intensified by the fact that “AI is expected to drive an explosion in data creation, so storing and processing that data will require substantial new data center capacity,” he says.
All of this leads to a key reality for investors: “The market is underappreciating the data center and digital infrastructure theme against this backdrop,” Dessai says. So, now could well be the time to capitalize on the data center and AI theme.
How to Invest in Data Centers and Hyperscalers
If you’re seeking the clearest, most direct way to invest in the AI revolution, you need to look beyond the graphics processing unit (GPU) makers and go straight to the powerhouse infrastructure that makes AI possible: data centers.
“Investors typically get exposure to AI through a handful of mega-cap technology names,” Dessai says. “But there is a lot more to the AI infrastructure story.”
Companies are increasing their data center spending so fast, it’s difficult to keep up with current estimates. The Magnificent Seven and other top hyperscalers are now expected to pour north of $765 billion into AI and data center investments in fiscal 2026, according to the latest estimates by Goldman Sachs.
And that’s expected to keep on growing: By 2031, analysts estimate AI spending will be $1.6 trillion per year. That accumulates to a whopping $7.6 trillion in AI capital expenditures between 2026 and 2031.
That kind of spending is bound to have huge knock-on effects across the economy. Building new data centers and upgrading old ones involves the industrials, materials, utilities, energy, real estate, communications and technology sectors. Nearly the entire market is — directly or indirectly — benefiting from the ongoing data center boom.
Not just any data center stock, exchange-traded fund or real estate investment trust will do, however. Here are seven of the best data center stocks, ETFs and REITs to buy now:
| STOCK, ETF OR REIT | MARKET CAPITALIZATION | FORWARD DIVIDEND YIELD |
| Digital Realty Trust Inc. (DLR) | $66 billion | 2.8% |
| Equinix Inc. (EQIX) | $100 billion | 1.9% |
| Nvidia Corp. (NVDA) | $5 trillion | 0.5% |
| Dell Technologies Inc. (DELL) | $252 billion | 0.6% |
| GE Vernova Inc. (GEV) | $284 billion | 0.2% |
| Vertiv Holdings Co. (VRT) | $113 billion | 0.1% |
| Data Center & Digital Infrastructure ETF (DTCR) | $2.1 billion* | 1.2%** |
*Net assets, rather than market capitalization, are listed for this fund.
**30-day SEC yield.
Digital Realty Trust Inc. (DLR)
Digital Realty is a global REIT that claims to be the world’s largest data center platform. Its PlatformDigital spans more than 300 data centers globally and serves over half of Fortune 500 companies, including Amazon Web Services (AWS), Microsoft Azure and Google Cloud.
The company started 2026 strong with first-quarter revenue of $1.6 billion, up 16% year over year. It also signed the largest hyperscale lease in company history and raised its full-year core funds from operations, or FFO, outlook, suggesting AI demand is translating into stronger demand for data center platforms.
Equinix Inc. (EQIX)
With a market cap of over $100 billion and 281 data centers on six continents, Equinix is one of the largest REITs in the world. Its centers act as a neutral “meet-me room” where the world’s major networks, cloud providers — such as AWS, Microsoft Azure and Google Cloud — and enterprises physically and virtually connect.
Equinix also had a strong start to 2026, with double-digit recurring revenue growth and improved margins. The first quarter was so strong, in fact, that management raised its 2026 financial outlook.
Nvidia Corp. (NVDA)
Nvidia isn’t a data center operator, but it’s become the gravitational center of the AI hardware universe. The company’s products power AI workloads inside data centers. This makes it one of the most direct public-market plays on AI data center demand.
The company’s latest earnings back up the bull case. It reported record full-year revenue for fiscal year 2026 and again in the first quarter of fiscal 2027, when revenue increased 85% year over year. Data center revenue alone was $75.2 billion in the first quarter, up 92% year over year. Nvidia also recently announced a record 35 new Nvidia-powered AI supercomputers in Europe, showing how global demand keeps growing. For investors, Nvidia isn’t just riding the AI wave; it’s shaping the shoreline.
Dell Technologies Inc. (DELL)
Dell may be best known for its PCs, but its data center business is becoming a bigger reason to watch the stock. The company offers data center solutions, including AI-optimized servers.
Dell’s latest results illustrate how quickly that business is scaling. In the latest quarter, the company reported record revenue of $43.8 billion, an 88% increase year over year. Its data center business segment saw a 181% increase in revenue, while AI-optimized server revenue saw an astonishing 757% increase year over year. This makes Dell a strong direct play on the AI data center buildout.
[Read: 7 Agentic AI Stocks and ETFs to Buy]
GE Vernova Inc. (GEV)
GE Vernova sits close to one of the biggest bottlenecks in the data center boom: power. The company makes gas turbines, grid equipment and electrification products that help customers meet rising electricity demand.
First-quarter adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) nearly doubled year over year, while orders rose 71% with growth in all business segments. The company had $2.4 billion in electrification segment orders to support data centers, more orders in just one quarter than it received all of last year, according to management. So there’s strong evidence supporting GE Vernova as a power infrastructure play on data center growth.
Vertiv Holdings Co. (VRT)
Vertiv provides the power, cooling and service infrastructure that keeps data centers running. Its systems are becoming more important as AI servers use more power and generate more heat.
The company kicked off fiscal year 2026 with strong momentum. Net sales rose 30% year over year, while adjusted operating profit surged by 64%. It also raised its full-year outlook to $13.5 billion to $14 billion in sales, suggesting 29% to 31% organic growth.
For investors, VRT is a picks-and-shovels play on AI data centers. It may be less glamorous than semiconductor chips, but it’s essential to make those chips usable at scale.
Global X Data Center & Digital Infrastructure ETF (DTCR)
If you want exposure to the AI data center boom without betting on a single pick, DTCR is a great option. The fund owns 25 companies tied to data centers and digital infrastructure, including data center REITs, tower operators, memory suppliers and other companies tied to the AI buildout. It’s also global, which may better reflect a data center market that’s expanding well beyond the U.S.
“For investors who likely are already exposed to mega-cap AI leaders, this could be a complementary way to participate in the AI cycle,” Dessai says.
The trade-off is cost: DTCR charges a 0.5% expense ratio.
More from U.S. News
7 Best Semiconductor Stocks for 2026
7 Best Biotech Stocks to Buy for 2026
8 Best Green Stocks and ETFs to Buy in 2025
7 Best Data Center Stocks, ETFs and REITs originally appeared on usnews.com
Update 07/20/26: This story was published at an earlier date and has been updated with new information.
