In this article, we will examine the 11 Best Performing Data Center Stocks to Buy Now.

Investors are increasingly treating data centers not just as back-end utilities, but as high-growth engines powering the digital economy, making them a focal point for those seeking both stability and upside in technology-driven markets.

Rightly so, data center stocks have been among the strongest performers this year. They were driven by rising demand for cloud infrastructure and enterprise digital services. Expanding online operations and technology upgrades have significantly increased the need for high-capacity, reliable data centers, boosting revenue for both operators and service providers.

And it’s not just the pure-play data center companies, but strategic investments have also flown in power, cooling, and network infrastructure. Long-term contracts with major cloud and tech clients have positioned a number of these companies to capitalize on sustained growth trends, making them some of the best-performing names in the data center space this year.

READ ALSO: 11 Best Emerging Technology Stocks to Buy Right Now and 12 Best ESG Stocks to Buy Now According to Hedge Funds.

Underlining the impact of data center growth, Mario Azar, Chairman & CEO of infrastructure development company Black & Veatch, discussed the rising demand for power driven by the growth of cloud infrastructure in an interview with CNBC on September 10. He noted that Black & Veatch, with over 110 years in critical infrastructure, has contributed more than a quarter of the United States’ power capacity. Data centers are a major driver of this trend, and the firm has several large-scale power projects planned over the next five to seven years to meet the expanding demand.

Azar also pointed out that the wider energy and infrastructure sectors are experiencing strong growth. Capital expenditure budgets for power-related projects have more than doubled between 2023 and 2025, with further increases expected by 2028, reflecting both data center requirements and broader industrial power needs.

Given this backdrop, let’s turn to our selection of the 11 best-performing data center stocks to buy now.

Our Methodology

To compile our list of the best-performing data center stocks, we screened U.S.-listed companies that are either pure-play data center operators or have significant exposure to the sector, leveraging ETFs, industry research, and proprietary databases. From this universe, we narrowed the list to stocks delivering the highest year-to-date returns. We then focused on the 11 stocks most widely held by hedge funds, based on Q2 2025 data from Insider Monkey, and ranked them according to the number of hedge fund investors with active positions.

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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Note: All pricing data is as of market close on September 18, 2025.

11 Best Performing Data Center Stocks to Buy Now

11. VNET Group Inc. (NASDAQ:VNET)

YTD Return: 107.8%

Number of Hedge Fund Holders: 27

VNET Group Inc. (NASDAQ:VNET) is one of the best performing data center stocks to buy now. On September 12, DBS reiterated a Buy rating on VNET with a $12.50 price target, following a nearly 20% rally since the analyst lifted the target from $9 in late July when shares traded near $8.30.

The rating reaffirmation came a day after VNET announced a 40MW wholesale order from a leading internet company for its new Gu’an IDC Campus in the Greater Beijing Area. The project will be delivered in phases and highlights the company’s ability to attract large-scale customers in a competitive market.

Management emphasized that the order will support the client’s use of domestic chips, a market segment expected to be a key driver of computing demand in China. VNET is also deploying advanced liquid cooling technology for this order, designed to reduce energy consumption and improve power utilization efficiency.

The deal reinforces VNET’s execution capabilities at a time when hyperscale demand remains resilient despite broader market uncertainty.

Apart from DBS, Morgan Stanley’s analyst Tom Tang also reiterated his Buy rating on the stock on August 28, with an unchanged price target of $12.00.

10. Applied Digital Corp. (NASDAQ:APLD)

YTD Return: 159.6%

Number of Hedge Fund Holders: 28

Applied Digital Corp. (NASDAQ:APLD) is one of the best performing data center stocks to buy now. On September 15, Craig-Hallum analyst George Sutton reiterated a Buy rating on the company with a $23 price target, citing continued execution in scaling its AI-focused infrastructure.

The update followed the company’s regulatory filing on September 12, in which the company announced progress on its Polaris Forge 1 development. The site, designed to support 1 gigawatt of capacity, will have its first 100-megawatt facility operational in Q4 2025, followed by additional 150-megawatt facilities in 2026 and 2027. These long-term leases are expected to provide steady cash flow and fund future growth.

Applied Digital also broke ground on Polaris Forge 2 in September, a $3 billion AI campus near Harwood, North Dakota, with 200 megawatts of initial critical IT load and potential for expansion. Early operations are targeted for 2026, with full capacity by 2027.

Interestingly, management noted it is in advanced discussions with a U.S.-based investment-grade hyperscaler for an anchor lease. Securing such a customer would broaden Applied Digital’s client mix and demonstrate its capacity to support large-scale AI infrastructure.

The company is also reviewing options for its Cloud Services division to sharpen its focus on data centers, a strategy expected to drive long-term shareholder value.

Applied Digital (NASDAQ:APLD) develops and operates data centers in North America designed for high-performance computing and artificial intelligence workloads.