In this article, we take a look at the 10 Best Data Center Stocks to Buy in July.
In a report in June, CBRE revealed that data center inventory across North America’s four largest data center markets—Northern Virginia, Atlanta, Dallas-Ft. Worth and Chicago continued to grow in the first quarter of the year, albeit at a slower pace, with growth of 33% compared to the 43% rise recorded in the previous quarter.
CBRE said Dallas-Ft. Worth posted the second-largest inventory gain, at 379.9 megawatts (MW), or 43.7%, making it the third-largest market in the region. This was driven by demand from hyperscalers, AI startups, and enterprises.
Northern Virginia remained the largest market during the quarter, adding 1,135.9 MW, a 37.3% increase.
“Despite substantial new supply, strong demand from AI startups, neoclouds and hyperscalers has driven vacancy rates to record lows in many key markets, such as Northern Virginia (0.3%) and Atlanta (1%) in North America,” CBRE said.
In terms of net absorption, CBRE reported a 34% increase in net absorption of the top four North American markets to 2,236.2 MW. This was driven by record leasing activity in Northern Virginia and outsized demand in Dallas-Ft. Worth.
“Northern Virginia set a new all-time high for absorption at 1,148.3 MW, as hyperscalers continued to expand their footprints and AI startups—including neoclouds—sought large amounts of available continuous power,” CBRE said.
The commercial real estate services firm noted that global power availability and grid infrastructure constraints are impacting development timelines and site selection globally, especially in established hubs in North America, particularly Northern Virginia and Chicago. It added that local opposition is also limiting the supply needed to meet current demand.
Keeping these developments in mind, let’s take a look at the 10 Best Data Center Stocks to Buy in July.
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Our Methodology
To compile our list of the 10 Best Data Center Stocks to Buy in July, we relied on financial media, ETFs, and screeners to identify U.S.-listed companies that are either pure-play data center operators or have significant exposure to the sector. From this pool, we selected the 10 stocks most widely owned by hedge funds, based on Q1 2026 filings from Insider Monkey’s database. These names were then ranked by the number of hedge funds holding positions in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Note: All pricing data is as of market close on July 7, 2026.
10. Digital Realty Trust, Inc. (NYSE:DLR)
Market Capitalization: $62.13 billion
Number of Hedge Fund Holders: 46
Digital Realty Trust, Inc. (NYSE:DLR) is one of the 10 Best Data Center Stocks to Buy in July. On Tuesday, the stock inched up 0.69%, closing at $174.90. Based on 33 analyst ratings compiled by CNN, 73% assigned a Buy rating to Digital Realty, while 27% assigned a Hold rating. The stock has an average price target of $220, a 25.79% upside from its current price.
On July 1, Barclays increased its price target on Digital Realty to $197 from $189 while maintaining an Equal Weight rating on the shares, according to a report by TheFly. The adjustment was made as Barclays increased its targets in the communications infrastructure real estate investment trust group, driven by higher growth expectations as companies are benefiting from ongoing hyperscale demand and accelerating enterprise AI demand.
In other news, Digital Realty recently set a price of $185 per share for an underwritten registered public offering of 12.3 million shares of its common stock by affiliates of Blackstone Inc. Shares of common stock sold in the offering will be issued to Blackstone upon the closing of the firm’s acquisition of Blackstone’s interests in the Digital Carver Dulles 9 and Digital Carver Brickyard joint ventures.
Digital Realty (NYSE:DLR) claims to be the world’s largest cloud- and carrier-neutral data center colocation platform. Its global data center platform, called PlatformDIGITAL, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing data gravity challenges.
9. IREN Limited (NASDAQ:IREN)
Market Capitalization: $15.67 billion
Number of Hedge Fund Holders: 53
IREN Limited (NASDAQ:IREN) is one of the 10 Best Data Center Stocks to Buy in July. On July 7, TipRanks reported that Bernstein analyst Gautam Chhugani reiterated a Buy rating on IREN while setting a price target of $100.00.
Similarly, Freedom Capital upgraded its rating on IREN to Buy from Hold on July 6, maintaining its price target of $58, according to a report by TheFly. The analyst noted that shares have fallen with those of peers, which means that now there’s enough upside to warrant a higher rating for the stock.
Freedom Capital said the IREN story is all about adding supply on schedule over the next two years, similar to other neocloud firms. The analyst projects the company’s revenue to “explode” from $717 million this year to $3.1 billion in FY27 and $8.5 billion in FY28.
Based on 17 analyst ratings compiled by CNN, 73% assigned a Buy rating to IREN, while 14% assigned a Hold rating. The stock has a median price target of $82.50, a 107.21% upside from the current price of $39.81.
IREN Limited (NASDAQ:IREN) is a vertically integrated AI Cloud provider, delivering large-scale data centers and GPU clusters for AI training and inference. The company’s platform is underpinned by its expansive portfolio of grid-connected land and power in renewable-rich regions across North America, Europe and APAC.
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