In this article, we take a look at the 10 Best Under-the-Radar Data Center Stocks to Buy.
In recent years, the data center industry has evolved from physical data storage facilities to a full-blown ecosystem in which other industries now play an important role. As adequate energy sources are needed to power these facilities, demand for energy companies has increased. The rise of more data centers has also led to more opportunities in the construction and real estate industries, as it requires the establishment of physical infrastructure. Additionally, these data centers also rely on the semiconductor industry for more powerful GPUs and high-bandwidth memory chips to support their capacity.
According to CBRE, U.S. data center demand continues to reach unprecedented levels, and 2026 is on track to set a new record for leasing activity. It added that vacancy remains at historic lows and pricing is at all-time highs. However, new supply is becoming increasingly difficult to deliver.
“Traditional 12-to-18-month timelines for sub-50-MW (megawatt) buildings no longer apply. The shift toward 500-MW-plus AI campuses has pushed construction schedules into multi-year territory. These large-scale developments require multiple on-site substations. Any need for new high-voltage transmission or incremental generation can extend interconnection timelines dramatically 24,36 or even 48+ months.,” CBRE said.
CBRE added that AI inference is emerging as a meaningful driver of demand in the data center sector.
“Developers, operators and occupiers are closely watching the next phase of AI adoption. Publicly traded operators noted that AI-related workloads represented a significant share of new leases in 2025. The key question for 2026 is whether edge data centers will reach broader commercial adoption as inference workloads scale,” it added.
With U.S. data center demand seen to continue, let’s take a look at the 10 Best Under-the-Radar Data Center Stocks.
Our Methodology
To compile our list, we reviewed various online resources and financial media reports to identify the best under-the-radar data center stocks. From among these stocks, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2025 database of 1041 elite hedge funds. Finally, the 10 best under-the-radar stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All pricing data is as of market close on April 22, 2026.
10. Applied Digital Corporation (NASDAQ:APLD)
Market Cap: $62.85 billion
Number of Hedge Fund Holders: 40
Applied Digital Corporation (NASDAQ:APLD) is one of the best under-the-radar data stocks to buy. The stock’s price skyrocketed 704.71% in the past year, while it registered a 15.37% increase year-to-date. Based on analyst consensus, Applied Digital continues to receive a Strong Buy rating, with an average price target of $46.00, implying upside from the current price of $32.43.
On April 23, the company announced it had entered into a lease agreement with a new U.S.-based high investment-grade hyperscaler at its 430- megawatt (MW) Delta Forge 1 AI Factory campus worth approximately $7.5 billion in total contracted value. The lease agreement spans an estimated 15-year lease term and covers 300-MW worth of critical IT load, purpose-built to support the unidentified hyperscaler’s artificial intelligence (AI) and high-performance compute (HPC) infrastructure.
Applied Digital Chief Executive Officer Wes Cummins said the company remains focused on delivering operational AI capacity at scale. He added:
“With this agreement, we now have two U.S. based investment-grade hyperscalers across our portfolio, marking an important step in the continued diversification of our customer base and strengthening the overall quality and visibility of our contracted revenue. Our priority remains execution –– bringing capacity online on schedule and operating it with discipline over the long term.”
Earlier, on April 8, the company reported a 139 percent rise in revenue to $126.6 million in the fiscal third quarter, up from $52.9 million in the same period last year. Applied Digital attributed the increase to its HPC Hosting Business, which generated approximately $71.0 million during the period. The HPC Hosting Business designs, builds, and operates next-generation data centers, providing massive computing power to support HPC applications in a cost-effective model.
The company said operations commenced at its first HPC data center, Polaris Forge 1, with 100 MW of capacity in the previous quarter. It added that a second 150 MW HPC data center is under construction at the same campus and is expected to come online in calendar 2026, while a third 150 MW facility is anticipated in calendar 2027.
Applied Digital Corporation designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. In 2025, the company was named Best Data Center in the Americas at the Global Datacloud Awards.
9. Digital Realty Trust, Inc. (NYSE:DLR)
Market Cap: $69.02
Number of Hedge Fund Holders: 43
Digital Realty Trust, Inc. (NYSE:DLR) is one of the best under-the-radar data stocks to buy. The stock is up 34.90% from its price a year ago and 29.56% year-to-date. On April 22, Stifel raised its price target on Digital Realty to $230 from $200 while maintaining a Buy rating on the stock, according to a report by TheFly.
Despite Stifel remaining constructive on data center REITs as AI-driven demand continues to outpace constrained supply, it added that the company is among those uniquely positioned to capitalize, citing its deep, powered land banks, priority access to critical electrical equipment, long-standing utility relationships, and strong balance sheets.
On April 22, Digital Realty announced that it is set to launch its next-generation interconnection solution, ServiceFabric, in Indonesia in the second half of the year. According to the company, the service orchestration platform enables seamless connectivity, data exchange, and workload deployment across the global ecosystem, which provides customers with faster deployment, allowing them to unlock the full potential of their data. The project will be by Digital Realty Bersama, Digital Realty’s 50/50 joint venture in Indonesia with Bersama Digital Infrastructure Asia (BDIA).
Digital Realty claims to be the world’s largest cloud- and carrier-neutral data center platform colocation. 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.
8. Equinix, Inc. (NASDAQ:EQIX)
Market Cap: $108.71 billion
Number of Hedge Fund Holders: 51
Equinix, Inc. (NASDAQ:EQIX) is one of the best under-the-radar data stocks to buy. The stock jumped 39.33% from a year ago, while it registered a 44.26% increase year-to-date. According to a report by TheFly on April 22, Stifel raised its price target on Equinix to $1,250 from $1,075 and maintained a Buy rating on the stock as it believes that the company is well-positioned to gain advantage from the AI-driven data center demand.
On April 21, Wells Fargo also boosted its price target on Equinix to $1,200 from $975 and kept an Overweight rating on the stock as it adjusted its estimates before the first quarter earnings report.
Earlier in March, Equinix announced global investments in workforce development to help build the next generation of technical talent for the digital infrastructure industry. This includes the global launch of its Pathways to Tech program, an early–career talent program that opens inclusive pathways into data center operations for students aged 14–18.
Equinix, Inc. shortens the path to boundless connectivity worldwide. 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.
7. Astera Labs Inc. (NASDAQ:ALAB)
Market Cap: $32.68 billion
Number of Hedge Fund Holders: 52
Astera Labs Inc. (NASDAQ:ALAB) is one of the best under-the-radar data stocks to buy. In the past year, the stock surged by 250.86% to its current price of $194.06. The stock jumped 12.77 percent over the past five days, driven by news that Amazon expanded its partnership with Anthropic earlier this week.
On April 21, RBC Capital analyst Srini Pajjuri adjusted his price target on Astera Labs upward to $250 from $225, while maintaining a Buy rating on the stock as he cited the stronger visibility into the company’s growth with the expected boost in Amazon’s use of Trainium3 AI chips. Astera Labs is a supplier of PCIe retimers, smart cable modules, and active electric cable modules to Amazon Web Services (AWS).
On April 20, Amazon said it is deepening its collaboration with Anthropic, with the latter committing to spend more than $100 billion over the next ten years on AWS technologies. Amazon said this covers current and future generations of Trainium, its custom silicon, as well as tens of millions of its widely-adopted CPU chip called Graviton cores, to provide superior price performance.
Astera Labs Inc. provides rack-scale AI infrastructure through purpose-built connectivity solutions. By collaborating with hyperscalers and ecosystem partners, Astera Labs enables organizations to unlock the full potential of modern AI.
6. Prologis, Inc. (NYSE:PLD)
Market Cap: $135.39 billion
Number of Hedge Fund Holders: 54
Prologis, Inc. (NYSE:PLD) is one of the best under-the-radar data stocks to buy. Prologis shares rose 41.49% in the past year and by 9.59% year-to-date. According to a report by TheFly, Citi analyst Nick Joseph raised his price target on Prologis to $165 from $145 and reiterated a Buy rating on the company following the company’s first-quarter results.
Similarly, Scotiabank analyst Nicholas Yulico also raised the firm’s price target on Prologis to $154 from $146 and kept an Outperform rating on the shares, also driven by the firm’s strong first-quarter performance. On April 16, the company reported revenues for the quarter ending March 31, 2026, of $2.3 billion, higher than its $2.14 billion revenues in the same period a year ago. Prologis also reported that net earnings per diluted share were $1.05 for the quarter compared with $0.63 for the corresponding period in 2025.
On April 9, the company partnered with global investment group La Caisse to create Prologis Logistics Investment Venture Europe (PLIVE), a new pan-European joint venture focused on acquiring, developing, and operating high-quality logistics properties. Earlier in March, the company formed a $1.6 billion joint venture with global institutional investor GIC to develop and own build-to-suit logistics facilities across major U.S. markets.
Prologis Chief Financial Officer Timothy D. Ardnt emphasized that the new partnerships will enhance the company’s ability to invest at scale. He said:
“Through our Strategic Capital platform, new partnerships with GIC and La Caisse will expand our access to capital and enhance our ability to invest at scale while preserving balance sheet strength and financial flexibility. Even amid an uncertain geopolitical environment, this combination of strong execution and capital strength underpins our increased Core FFO outlook.”
Prologis, Inc. creates intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. The company leases modern logistics facilities to a diverse base of approximately 6,500 customers principally across two major categories: business-to-business and retail/online fulfillment.
5. nVent Electric plc (NYSE:NVT)
Market Cap: $22.66 billion
Number of Hedge Fund Holders: 68
nVent Electric plc (NYSE:NVT) is one of the best under-the-radar data center stocks to buy. The stock has more than doubled in the past year, registering a 168.19% growth and an equally impressive 31.18% year-to-date increase. It continues to enjoy a strong buy rating from analysts, driven by optimistic growth prospects for the company.
On April 13, Citi analyst Vladimir Bystricky raised the price target on nVent Electric to $152 from $133 and maintained a Buy rating on the stock. The increase was made amid target adjustments in the industrials group as part of a first-quarter preview. Citi emphasized that the gradually improving industrial trends remain intact, adding that it will likely drive solid first-quarter earnings for most companies in the sector.
Earlier this month, Evercore ISI initiated coverage of nVent Electric, setting a price target of $160.00 and assigning an outperform rating, according to a report by Investing.com. Evercore ISI said the company’s expected earnings per share growth of approximately 25% from 2026 through 2028 will be fueled by its organic growth prospects, pricing power, and operational execution.
On March 18, nVent Electric Chair and Chief Executive Officer Beth Wozniak expressed optimism for the company’s performance at the start of the year. She said:
“We have reshaped nVent into a more focused, higher-growth electrical company that is well-positioned to capitalize on the growing trends of electrification, digitalization and sustainability. Our strategy is to continue driving accelerated growth with a focus on the infrastructure vertical, including data centers and power utilities, new products and innovation, capacity expansion and disciplined capital allocation. The execution of this strategy is yielding significant results as seen in 2025.We are off to a strong start to the year, our Q1 performance is trending ahead of our initial expectations, and we look forward to continuing this momentum.”
nVent Electric plc (NYSE:NVT) is a leading global provider of electrical connection and protection solutions. It offers a comprehensive range of system protection and electrical connections solutions across industry-leading brands that are recognized globally for quality, reliability, and innovation.
4. Credo Technology Group Holding Ltd (NASDAQ:CRDO)
Market Cap: $34.95 billion
Number of Hedge Fund Holders: 69
Credo Technology Group Holding Ltd (NASDAQ:CRDO) is one of the best under-the-radar data center stocks to buy. The stock has skyrocketed 367.99% in the past year and 32.31% year-to-date. On April 22 alone, Credo Technology’s stock rose 3.37 percent as it continued to highlight its next-generation connectivity solutions for AI infrastructure.
Last week, the company kicked off its participation in the Taiwan Semiconductor Manufacturing Company (TSMC) 2026 Technology Symposium, where it showcased the first solution in its OmniConnect family, Weaver, designed to break through the memory bottlenecks that limit AI inference scalability. In addition to Weaver, Credo will also highlight its 224G PAM4 SerDes Intellectual Property (IP), proven in TSMC 3nm process.
On April 13, Credo Technology announced a definitive agreement to acquire DustPhotonics, a company engaged in the development of Silicon Photonics Photonic Integrated Circuit (SiPho PIC) technology for optical transceivers. The company said the acquisition directly accelerates its optical interconnect roadmap, adding that it significantly expands its served addressable market in the global optical industry.
Credo Technology President and Chief Executive Officer William Brennan emphasized that the acquisition plays an important role in its AI connectivity strategy. He said:
“Combining forces with DustPhotonics marks a defining step in Credo’s strategy to lead across the full spectrum of AI connectivity. We’ve built a strong position in high-speed electrical solutions, and this move decisively expands that leadership into Silicon Photonics with best-in-class PIC technology that complements our ZeroFlap Optical Transceivers and DSP portfolio”.
Credo Technology Group Holding Ltd innovator in providing secure, high-speed connectivity solutions that deliver improved reliability and energy efficiency for the next generation of AI-driven applications, cloud computing, and hyperscale networks.
3. Constellation Energy Corporation (NASDAQ:CEG)
Market Cap: $104.04 billion
Number of Hedge Fund Holders: 76
Constellation Energy Corporation (NASDAQ:CEG) is one of the best under-the-radar data center stocks to buy. In the past year, the company’s stock jumped 36.87%, while it posted a 21.59% percent year-to-date. On April 22, Evercore ISI resumed coverage of Constellation Energy (CEG) with an Outperform rating and $380 price target, TheFly reported. The coverage resumption was driven by the company’s completion of its $26.6B Calpine acquisition earlier this year.
On January 7, Constellation announced the completion of its acquisition of Calpine Corporation from Energy Capital Partners, which resulted in the combined company having approximately 55 gigawatts (GW) of capacity across nuclear, natural gas, geothermal, hydro, wind, solar, and battery storage.
For this year, Constellation Energy is targeting $3.9 billion in capital spending and has increased its share buyback authorization to $5 billion, as it prepares to meet the growing demand for clean electricity, Reuters reported in March.
Constellation Energy’s stock continues to see a strong buy rating from analysts. Based on 21 analyst ratings compiled by CNN, 86 percent assigned a Buy rating on Constellation Energy. It currently has a median price target of $388.00, a 35.12 percent upside from its current price.
Constellation Energy Corporation is the largest private-sector power producer in the world and the nation’s largest producer of clean and reliable energy. With 55 gigawatts of capacity from nuclear, natural gas, oil, geothermal, hydro, wind, and solar facilities, its fleet has the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation’s clean energy and delivering the around-the-clock reliability needed to power America’s growing economy.
2. Eaton Corporation plc (NYSE:ETN)
Market Cap: $160.57 billion
Number of Hedge Fund Holders: 87
Eaton Corporation plc (NYSE:ETN) is one of the best under-the-radar data center stocks to buy. Eaton’s stock has registered 50.14% year-on-year growth and 26.45% year-to-date gains. On April 13, Citigroup Inc. adjusted its price target on Eaton upward to $464 from $435 while maintaining a Buy rating. The increase was made amid target adjustments in the industrials group as part of a first-quarter preview. Citi emphasized that the gradually improving industrial trends remain intact, adding that it will likely drive solid first-quarter earnings for most companies in the sector.
On April 20, Eaton announced the expansion of its authorized service center agreement with Air Support, reinforcing its commitment to customer-centric aftermarket support and localized repair solutions.
Eaton said the expanded agreement reflects Air Support’s strong performance as the company’s first authorized aerospace service center in EMEA, emphasizing the latter’s support in ensuring that customers have easier and more cost-effective access to high-quality repairs closer to where aircraft operate. Through the agreement, Air Support provides customers with access to OEM repairs, the latest repair documentation, and consistent use of approved Eaton spare parts, while reducing transportation-related emissions through localized service delivery.
Eaton Corporation plc (NYSE:ETN) is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. It makes products for the data center, utility, industrial, commercial, and institutional, machine building, residential, aerospace, and mobility markets.
1. Bloom Energy Corp. (NYSE:BE)
Market Cap: $64.88 billion
Number of Hedge Fund Holders: 88
Bloom Energy Corp. (NYSE:BE) is one of the best under-the-radar data center stocks to buy. Bloom Energy’s stock has skyrocketed 1,231.11% over the past year and an equally impressive 132.8% year-to-date. On April 21, UBS raised its price target on Bloom Energy to $251 from $171 while retaining a Buy rating, driven by the readiness of the company for the next wave of AI data center infrastructure buildout, with its entire product lineup being 800V DC ready.
On April 13, Bloom Energy announced an expanded partnership with Oracle to support the rapid buildout of its AI and cloud computing infrastructure. Under a master services agreement, Oracle intends to procure up to 2.8 gigawatts (GW) of Bloom’s fuel cell systems. As part of the agreement, an initial 1.2 GW of capacity has been contracted, with deployment underway and continuing into next year. Bloom’s fuel cells will support Oracle projects in the U.S. and help meet demand for its cutting-edge cloud infrastructure.
Bloom Energy said the expanded partnership highlights its capability to provide fast, reliable power suited for AI workloads, which require rapid, load‑following support that traditional grids were not designed to deliver. It emphasized that its systems are built to support higher-density AI workloads more efficiently, with a technology platform aligned to emerging standards such as 800 V dc.
Bloom Energy Corp. empowers enterprises to meet soaring energy demands and responsibly take charge of their power needs. The company’s solid oxide fuel cell systems provide ultra-resilient, highly scalable onsite electricity for Fortune 500 customers around the world, including data centers, semiconductor manufacturing, large utilities, and other commercial and industrial sectors.
