10 Best Data Center Stocks to Buy in July

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.

Copyright: ralwel / 123RF Stock Photo

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.

8. CoreWeave Inc. (NASDAQ:CRWV)

Market Capitalization: $47.17 billion

Number of Hedge Fund Holders: 63

CoreWeave Inc. (NASDAQ:CRWV) is one of the 10 Best Data Center Stocks to Buy in July. On July 6, Investing.com reported that Wolfe Research maintained an Outperform rating on CoreWeave while keeping a $150.00 price target on the stock.

The analyst noted that CoreWeave expects the second quarter to be the largest quarter for active power added in fiscal 2026. It estimates the second-quarter backlog at approximately $110 billion to $115 billion, lower than some investors’ expectations of $125 billion to $130 billion.

Moreover, Wolfe Research believes that CoreWeave will exit fiscal 2026 with a backlog exceeding $135 billion. It highlighted that planned capacity supports potential upside to fiscal 2027 annual recurring revenue targets.

In other news, CoreWeave launched an AI Research and Iteration Agent, called CoreWeave ARIA (AI Research & Iteration Agent), with autonomous research and collaborative intelligence on June 29. The AI research agent built directly into Weights & Biases (W&B) by CoreWeave accelerates the AI research loop by closing the gap between analysis and action, turning the data teams already generate into a compounding engine for better models and more reliable agents. The AI research agent analyzes thousands of runs and tens of thousands of metrics in minutes.

CoreWeave Inc. (NASDAQ:CRWV) is an AI cloud computing company that specializes in providing cloud-based graphics processing unit (GPU) infrastructure to AI developers and enterprises.

7. Equinix, Inc. (NASDAQ:EQIX)

Market Cap: $98.51 billion

Number of Hedge Fund Holders: 65

Equinix, Inc. (NASDAQ:EQIX) is one of the 10 Best Data Center Stocks to Buy in July. On Tuesday, the stock closed 2.41% higher at $1,022.93. Of the 33 analyst ratings compiled by CNN, 79% rated the stock Buy, while 21% assigned a Hold rating. The stock currently has a median price target of $1,212.50, an 18.53% upside from its current price.

Earlier on July 1, TheFly reported that Barclays increased its price target on Equinix to $1,130 from $1,109 while maintaining an Equal Weight rating on the stock. The analyst attributed the upward adjustment to its increased targets in the communications infrastructure real estate investment trust group, citing higher growth expectations than previously modeled. Barclays noted that firms in the sector are benefiting from ongoing hyperscale demand and accelerating enterprise AI demand.

Similarly, on June 29, Citi analyst Michael Rollins also increased the price target on Equinix to $1,260 from $1,240 while maintaining a Buy rating on the stock, according to a report by TheFly. The analyst cited that the company is benefiting from the ongoing growth in cloud and AI workloads.

Equinix, Inc. (NASDAQ:EQIX) is a leading global data center and colocation provider. Its digital infrastructure, data center footprint, and interconnected ecosystems empower innovations that enhance our work, life, and planet. Equinix connects economies, countries, organizations, and communities, delivering seamless digital experiences and cutting-edge AI—quickly, efficiently, and everywhere.

6. Eaton Corporation plc (NYSE:ETN)

Market Capitalization: $153.64 billion

Number of Hedge Fund Holders: 73

Eaton Corporation plc (NYSE:ETN) is one of the 10 Best Data Center Stocks to Buy in July. Based on 28 analyst ratings compiled by CNN, 79% assigned Eaton a Buy rating, while 18% assigned it a Hold rating.

Earlier, on July 2, Bank of America Securities maintained a Buy rating on Eaton, according to a TipRanks report. On the same day, Eaton reported that its investments in research and development of products and solutions that enhance energy efficiency, improve safety, and increase asset productivity since 2020 reached $2.1 billion last year, up from the $1.7 billion recorded in 2024. Eaton is targeting $3 billion in investments by 2030.

Aligned with the said investments, Eaton reported that it was able to reduce greenhouse gas (GHG) emissions by 40% in 2025 compared to the 2020 baseline figures. Additionally, the company said 96% of its new products achieved a ‘Performer’ rating last year, its standard for improved sustainability product performance.

Last month, Eaton announced that it has entered into a definitive agreement with Dana Incorporated, in which Eaton will separate and combine its Mobility Group with Dana in a Reverse Morris Trust (RMT) transaction, creating a combined company valued at over $10 billion.

Eaton Corporation plc (NYSE:ETN) is an intelligent power management company. It makes products for the data center, utility, industrial, commercial, and institutional, machine building, residential, aerospace, and mobility markets.

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