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 (NASDAQ:APLD) 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 (NYSE:DLR) 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.
