10 Best Under-the-Radar Data Center Stocks to Buy

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.

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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.

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. (NASDAQ:EQIX) 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. (NASDAQ:ALAB) 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. (NYSE:PLD) 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.

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