In this article, we will discuss the 10 Best Data Center Stocks to Invest In According to Billionaires.
Trillions of dollars are flowing into data centers to keep up with growing demand amid the artificial intelligence boom. McKinsey expects data center demand to more than triple by 2030, a surge that would require data center operators to invest nearly $7 trillion to keep up. Last year, OpenAI, Softbank, and Oracle announced a $500 billion AI infrastructure pact through 2029 to keep up with the demand.
Likewise, the spending on data center construction has been on the rise, increasing by 28% in April to $50 billion. For the first time, it exceeded public transportation construction spending in a single month in the US, which totaled $49.9 billion.
A JPMorgan analysis found that more than 60% of planned data center capacity scheduled for completion in 2027 is still under construction. Another 7% is delayed. The delays have been necessitated by the need for companies to obtain approvals from grid operators and power companies to connect data centers to the system.
“Because of how much uncertainty there is about how many data centers are real, about how much load is going to be connected, it has kind of paralyzed a lot of the processes,” said Josh Rhodes, an energy expert at the University of Texas at Austin.
Goldman Sachs expects power demand to rise by roughly 160% by 2030 as hyperscalers rush to build the infrastructure needed to operate complex AI models. Amid the expected AI data center build-out to support the AI revolution, let us take a look at some of the best data center stocks to invest in, according to billionaires.
Our Methodology
For this list, we scanned the Inside Monkey’s database of billionaire holdings as of Q1 2026. Next, we picked out companies in the data center industry. We focused on companies that build and operate data center facilities or provide data center components and technologies. We ended up with dozens of stocks in our initial list and applied additional filters to select the best. From there, we looked for stocks that are also popular with hedge funds in Q1 2026 and have upside potential. Finally, we ranked the stocks based on the value of billionaire stakes 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).
Best Data Center Stocks to Invest In According to Billionaires
10. Applied Digital Corp (NASDAQ:APLD)
Billionaires’ Stake: $149.8 Million
Number of Hedge Fund Holders: 39
Number of Billionaire Holders: 11
Stock Upside Potential: 33.61%
Applied Digital Corp (NASDAQ:APLD) is one of the best data center stocks to invest in according to billionaires. Applied Digital shares have gained around 57% year-to-date and have surged more than 245% over the past 12 months. Analysts continue to see substantial upside potential in the stock.
Applied Digital Corp has secured another major data center deal with an existing hyperscale customer. On May 20, the company said it signed a 15-year lease for its fourth AI-focused data center campus, known as Polaris Forge 3, with this customer. This is the same customer that the company previously signed for the Delta Forge 1 campus.
Applied Digital said the latest contract is expected to generate around $7.5 billion in revenue over the initial lease term. If all renewal options are exercised, the total value could reach $18.2 billion. According to Applied Digital, the latest deal pushes its contracted revenue backlog to roughly $31 billion across four campuses. The backlog could increase to $73 billion if customers extend their leases.
About 65% of Applied Digital’s contracted revenue is now backed by blue-chip customers. These are US-based investment-grade hyperscalers. The Polaris Forge 3 project will provide 300 megawatts of computing capacity and is scheduled to begin operations in 2027. So far, Applied Digital’s total contracted capacity is 1.2 gigawatts.
Applied Digital Corp builds and operates data centers and provides colocation services. The company provides the digital infrastructure and services to power AI, cloud, and blockchain workloads. It has purpose-built infrastructure for training and running AI models.
9. Riot Platforms Inc (NASDAQ:RIOT)
Billionaires’ Stake: $370.5 Million
Number of Hedge Fund Holders: 49
Number of Billionaire Holders: 14
Stock Upside Potential: 4.20%
Riot Platforms Inc (NASDAQ:RIOT) is one of the best data center stocks to invest in according to billionaires. In the past month, Riot Platforms’ shares have gained more than 20%. That puts the stock’s year-to-date gains at around 77% and past-year gains at roughly 180%.
On May 14, Jefferies initiated coverage of Riot Platforms Inc stock with a Buy rating and a $37 price target. The target indicates a roughly 47% upside to the current price. Jefferies based its call on the company’s growing digital infrastructure operation and vertically integrated business model.
According to the firm, Riot has a large digital infrastructure footprint in metro-adjacent markets in Texas. These include Corsicana and Rockdale campuses. The firm pointed out that AI inference workloads favor the kind of network adjacency that Riot campuses offer. Riot has already secured a lease deal with AMD at the Rockdale site.
In addition to Riot’s strategically located campuses, Jefferies also hailed the company’s ability to design and manufacture certain data center components in-house. According to the firm, producing switchgear and power distribution equipment in-house gives Riot a supply chain advantage and strengthens its position in lease negotiations.
Jefferies explained that its investment thesis on Riot stock hinges on the company securing anchor tenants at its Corsicana and Rockdale sites. Moreover, the thesis hinges on Riot converting its power assets and engineering expertise into AI large-scale AI deployments.
Riot Platforms Inc is a crypto-mining and digital infrastructure company. Its crypto division primarily mines Bitcoin. The infrastructure unit builds and operates data centers to power AI and other high-performance computing workloads.
8. Cipher Digital Inc (NASDAQ:CIFR)
Billionaires’ Stake: $399.2 Million
Number of Hedge Fund Holders: 49
Number of Billionaire Holders: 17
Stock Upside Potential: 14.75%
Cipher Digital Inc (NASDAQ:CIFR) is one of the best data center stocks to invest in according to billionaires. Cipher Digital shares have soared more than 57% year-to-date and have exploded more than 620% over the past year. Wall Street continues to see more upside in this AI data center stock.
On May 14, Jefferies initiated coverage of Cipher Digital Inc stock with a Buy rating and a $32 price target. For this call, the firm pointed to Cipher Digital’s growing foothold in the AI data center market.
According to Jefferies, Cipher entered the sector later than many competitors, but the company has already secured lease agreements with blue-chip customers. Cipher signed its third AI data center campus lease with an investment-grade hyperscale customer in Q1 2026.
Jefferies pointed out that Cipher has quickly established credibility in the industry with high-quality tenants. The firm stressed that Cipher has focused on customers with solid credit profiles and strong balance sheets. According to the firm, this strategy reduces the risk of contract defaults and project financing. Jefferies believes Cipher’s growing track record will help it win additional business.
Cipher’s management has said that existing projects are progressing on schedule. The management also said the company expects to have enough capital to fund the third data center campus.
Cipher Digital Inc, formerly known as Cipher Mining, develops and operates industrial-scale data centers. Its facilities power AI and high-performance computing workloads. Cipher Digital serves hyperscale customers like Google and Amazon.
7. DigitalBridge Group Inc (NYSE:DBRG)
Billionaires’ Stake: $432.5 Million
Number of Hedge Fund Holders: 46
Number of Billionaire Holders: 19
Stock Upside Potential: 2.11%
DigitalBridge Group Inc (NYSE:DBRG) is one of the best data center stocks to invest in according to billionaires. DigitalBridge shares have gained more than 60% over the past six months.
On May 27, DigitalBridge Group Inc announced a deal to acquire ArcLight Capital Partners. The deal includes a base purchase price of $650 million and an additional $400 million in contingent consideration. This means the total transaction value for this deal could hit $1.05 billion.
ArcLight owns and operates 70GW of power generation assets as well as electric and gas transmission and storage infrastructure. ArcLight has one of the largest private power generation portfolios in North America.
According to DigitalBridge, its combination with ArcLight would result in an industry leader at the convergence of power, AI, and digital infrastructure. Once the transaction is closed, ArcLight will operate as a separate business within DigitalBridge’s platform.
DigitalBridge said closing of the ArcLight deal is conditioned on the closing of its own acquisition by SoftBank. DigitalBridge agreed to be bought by SoftBank for $4 billion in a deal expected to close in the second half of 2026.
DigitalBridge Group Inc is a global digital infrastructure investment company. It owns, and operates, and invests in data centers, fiber networks, cell towers, and small cells. The company says it invests in real assets exposed to growing, resilient markets.
6. Iren Ltd (NASDAQ:IREN)
Billionaires’ Stake: $636.7 Million
Number of Hedge Fund Holders: 53
Number of Billionaire Holders: 16
Stock Upside Potential: 13.66%
Iren Ltd (NASDAQ:IREN) is one of the best data center stocks to invest in according to billionaires. Iren Ltd shares have gained around 45% year-to-date and surged 590% over the past 12 months.
Iren Ltd continues to expand its data center capacity as it looks to capitalize on the booming AI-driven demand. On June 3, the company announced plans for an 800-megawatt data center campus in Australia. This is the company’s first data center project in Australia, and one of the largest of its kind in the Asia-Pacific region.
Iren said it has secured a transmission connection agreement for the proposed data center site. The company said this connection gives it access to enough grid capacity to support up to 800 megawatts of power without requiring network upgrades.
The site is expected to begin receiving power in 2028, and the company plans to move forward with early development work as it obtains regulatory approvals.
The campus is located in South Australia, roughly 78 miles northeast of Adelaide. Iren noted that the location offers a major connectivity advantage. The site has access to submarine fiber networks linking major demand centers, including Singapore, Indonesia, South Korea, and Japan. According to Iren, the Asia-Pacific region is one of the world’s fastest-growing AI markets, with demand significantly outpacing capacity.
Iren Ltd, based in Australia, builds and operates data centers for AI, cloud services, and crypto mining workloads. The company has partnered with Nvidia and other industry leaders to build AI-ready data centers. Iren’s facilities run on 100% renewable energy.
5. Digital Realty Trust Inc (NYSE:DLR)
Billionaires’ Stake: $741.8 Million
Number of Hedge Fund Holders: 46
Number of Billionaire Holders: 19
Stock Upside Potential: 16.39%
Digital Realty Trust Inc (NYSE:DLR) is one of the best data center stocks to invest in according to billionaires. Digital Realty shares are up roughly 20% year-to-date, and analysts see the stock still has room for upside.
Digital Realty Trust Inc has partnered with ePlus on a private AI infrastructure solution. ePlus is a managed services provider across the technology spectrum. According to a May 26 press release, ePlus will provide managed services for private AI infrastructure on Digital Realty’s global data center platform.
SFIO CRACHO/Shutterstock.com
This arrangement is designed to make AI more accessible across industries. The solution is aimed at enterprises that seek reliable support for AI workloads, faster time to value, and predictable cost models.
This partnership comes as Digital Realty continues to expand its capacity to address the accelerating data center demand. Digital Realty CEO Andy Power has said they are rapidly advancing hyperscale AI-capacity and broadening their capital base to extend the company’s growth runway.
On May 14, Truist Securities raised its price target on Digital Realty shares to $208 from $207 while keeping a Buy rating on the stock. For this call, the firm noted that Digital Realty is well-positioned to benefit from AI demand.
Digital Realty Trust Inc is a real estate investment trust that owns and operates data centers across the world. It offers colocation and interconnectivity services. The company’s infrastructure powers the internet, cloud computing, and AI systems.
4. Core Scientific Inc (NASDAQ:CORZ)
Billionaires’ Stake: $1.14 Billion
Number of Hedge Fund Holders: 81
Number of Billionaire Holders: 25
Stock Upside Potential: 5.34%
Core Scientific Inc (NASDAQ:CORZ) is one of the best data center stocks to invest in according to billionaires. Core Scientific shares are up around 34% over the past month, have gained more than 77% year-to-date, and have soared 126% over the past year. Analysts continue to see upside potential in the stock.
On May 26, Core Scientific Inc announced the appointment of Steve Smith to its board of directors. The company added that Smith would also serve on its nominating and corporate governance committee.
According to Core Scientific, Smith brings over 35 years of experience in the data center and digital infrastructure. Smith is currently the CEO of Zayo Group, a global internet network provider. Before joining Zayo, Smith served as CEO of the data center giant Equinix for more than a decade. In that period, Equinix’s revenue increased from roughly $400 million annually to more than $4 billion.
Core Scientific looks to benefit from Smith’s proven record and deep commercial and operational experience as it seeks to accelerate its growth. In his comment, Smith noted that Core Scientific is well-positioned to capture opportunities amid increasing demand for computing infrastructure.
In April 2026, Core Scientific announced plans to transform its Pecos, Texas site into a massive AI‑focused data center campus with up to 1.5 GW of power capacity, according to Bloomberg. About 1 GW will be available for leasing, while 300 MW previously used for Bitcoin mining is being repurposed for data center operations. The first data hall has moved into vertical construction, with initial capacity expected in early 2027.
Core Scientific also secured an additional 300 MW of contracted power and is exploring further expansion through behind‑the‑meter solutions. This pivot reflects a broader trend among crypto miners including MARA Holdings, Hive, Hut 8, TeraWulf, and Iren who are diversifying into AI infrastructure as mining margins tighten, positioning themselves at the intersection of digital assets and next‑generation data centers.
Core Scientific Inc owns and operates data centers. Its purpose-built data centers are designed to support high-density computing, AI workloads, and digital asset mining. The company provides the infrastructure that large technology companies need to run complex computing operations.
3. Vertiv Holdings Co (NYSE:VRT)
Billionaires’ Stake: $3.8 Billion
Number of Hedge Fund Holders: 96
Number of Billionaire Holders: 28
Stock Upside Potential: 12.09%
Vertiv Holdings Co (NYSE:VRT) is one of the best data center stocks to invest in according to billionaires. In the past six months alone, Vertiv shares have gained more than 63%. The shares have surged more than 175% over the past year.
On June 3, Vertiv Holdings Co introduced a new fluid management service called PurgeRite NearZero. This process is designed to reduce water consumption during the commissioning of data center cooling systems. It combines mechanical flushing, water treatment and filtration to recycle water throughout the commissioning process. This helps reduce the need for repeated fresh-water supply.
According to Vertiv, data center operators face increasing pressure to manage water as AI and high-density computing systems have increased the complexity of cooling networks. The company positions its PurgeRite NearZero process as the solution that data center operators need now.
The process has reduced water consumption by as much as 78% in selected deployments, Vertiv said. The company also reported reductions of up to 91% in water haul-off volumes and up to 34% in discharge management costs compared with traditional commissioning methods.
Vertiv said the PurgeRite NearZero service complements its portfolio of cooling, fluid management offerings for hyperscale, enterprise, and colocation data centers.
Vertiv Holdings Co provides power, cooling, and IT management systems for data centers. Its solutions include modular data center architectures and advanced liquid cooling. The company supports the critical digital infrastructure that powers growing AI workloads.
2. Equinix Inc (NASDAQ:EQIX)
Billionaires’ Stake: $4.70 Billion
Number of Hedge Fund Holders: 65
Number of Billionaire Holders: 26
Stock Upside Potential: 12.16%
Equinix Inc (NASDAQ:EQIX) is one of the best data center stocks to invest in according to billionaires. Equinix shares have gained more than 45% over the past six months, and analysts still see upside potential in the stock.
On June 3, Equinix Inc was added to Citi’s Focus List. This is a high-conviction compilation of the firm’s top buy-rated stock ideas. Citi has a Buy rating on Equinix stock with a price target of $1,240.
The firm based its latest call on Equinix on continued growth of the company’s recurring revenue. Citi sees Equinix’s recurring revenue growth hitting the high end of the guided range for 2026. Equinix’s recurring revenue is expected to grow 9% to 10% this year, and Citi believes this growth can extend beyond 2026.
In Q1 2026, Equinix’s recurring revenue increased 12% YoY to $2.33 billion. Total revenue rose 10% to $2.44 billion. The company reported robust demand for its AI, cloud, and networking solutions during the quarter. The strong start to the year led Equinix to raise its 2026 outlook. The company anticipates 2026 total revenue in the range of $10.1 billion to $10.2 billion, indicating a growth of between 10% and 11%.
On May 14, Equinix Inc. announced the global rollout of Equinix Fabric Geo Zones, a new network‑level sovereignty enforcement layer built into Equinix Fabric. The service addresses rising compliance risks from network rerouting events that can inadvertently move sovereign data across borders. By keeping traffic strictly within defined geographic boundaries, Geo Zones ensures enterprises meet legal data residency requirements while operating across interconnected clouds and providers. This expansion reinforces Equinix’s role as a leader in data center compliance and hybrid multicloud infrastructure.
Equinix Inc is a digital infrastructure company. It operates a global network of data centers through which it provides colocation, secure physical hosting, and on-demand interconnections. The company’s infrastructure allows seamless connectivity across clouds and networks.
1. Nvidia Corp (NASDAQ:NVDA)
Billionaires’ Stake: $63.4 Billion
Number of Hedge Fund Holders: 275
Number of Billionaire Holders: 53
Stock Upside Potential: 39.10%
Nvidia Corp (NASDAQ:NVDA) is one of the best data center stocks to invest in according to billionaires. Nvidia shares are up 14% over the past month and up more than 48% over the past year.
On June 6, Micron Technology (NASDAQ:MU) secured certification for its HBM4 memory on Nvidia Corp’s upcoming Vera Rubin AI platform, according to Bloomberg. This approval places Micron among a select group of suppliers supporting Nvidia’s next‑generation AI systems, alongside Samsung Electronics and SK Hynix.
HBM, or high‑bandwidth memory, is essential for powering advanced AI accelerators and data center workloads. By certifying Micron’s HBM4, Nvidia ensures its Vera Rubin platform will have access to cutting‑edge memory solutions capable of handling the massive computing demands of next‑generation AI models. This strengthens Nvidia’s ecosystem and highlights its leadership in AI infrastructure.
The Vera Rubin platform is expected to succeed Nvidia’s current AI systems, expanding capacity for cloud providers and enterprises investing heavily in AI. Certification of multiple suppliers, including Micron, reflects Nvidia’s strategy to secure reliable, high‑performance components for its expanding AI factory architecture.
Micron’s involvement underscores the broader surge in demand for advanced memory as AI spending accelerates. While competition in HBM remains intense, Nvidia’s certification of Micron ensures diversified supply for its future platforms, reinforcing Nvidia’s central role in driving the AI semiconductor market forward.
The same day, Navitas Semiconductor (NASDAQ:NVTS) jumped 25% after announcing a partnership with the NVIDIA MGX Ecosystem to advance 800 VDC AI infrastructure, Bloomberg reported. At COMPUTEX 2026 (June 2–5, Taipei), following Nvidia’s Partner Ceremony on May 29, Navitas showcased its 800 V‑to‑6 V DC‑DC power delivery board powered by GaNFast technology, which eliminates the traditional 48 V bus and streamlines server tray design for Nvidia’s AI Factory MGX platform.
Featuring 16 GaNFast FETs rated at 650 V, the board achieves 97.5% efficiency at 1 MHz with a density of 2100 W/in³, thinner than a mobile phone, tackling the challenge of efficient power delivery for massive AI workloads. While Navitas provides gallium nitride and silicon carbide semiconductors, the collaboration underscores Nvidia’s leadership in AI ecosystems, reinforcing its dominance as the backbone of next‑generation AI factories and global data center innovation.
Nvidia Corp supplies advanced graphics processing units used in AI and cloud data centers. The data center market generates around 90% of Nvidia’s total revenue. Moreover, Nvidia dominates the data center GPU market. Nvidia has partnered with various companies to accelerate AI-ready data center buildout.
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