Our list today highlights the 11 Worst Performing Data Center Stocks in 2025.
At the beginning of 2025, Goldman Sachs highlighted high-density data centers as critical to winning the global race to develop generative artificial intelligence. Later in August, McKinsey & Company described data centers as the “foundational infrastructure” behind nearly every digital service. These studies have proven timely, as tech giants and hyperscalers continue to unveil massive investments to secure their share of the AI future.
On September 27, IREN Limited’s co-CEO, Dan Roberts, explained to CNBC how the firm has shifted from Bitcoin mining to supplying computing power for artificial intelligence. He noted that demand for AI capacity is rising so quickly that the industry is struggling to keep up. He also highlighted that McKinsey estimates global data center needs could grow by another 100 gigawatts by 2030, a figure that shows just how big the opportunity is.
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But the growth story is not universal. Data centers are at the heart of the AI revolution, but not every company is benefiting equally from it. Some companies are adding new sites, winning contracts, and benefiting from the AI build-out. Others, however, are falling behind due to poor execution, heavy debt, or weaker demand in their market segments. Their shares have dropped sharply this year, even as the broader industry attracts record levels of investment.
Against this backdrop, we now look at our selection of the 11 worst performing data center stocks in 2025.
Photo by Sebastian Herrmann on Unsplash
Our Methodology
To compile our list of the worst-performing data center stocks, we started by screening U.S.-listed companies that are either pure-play data center operators or have significant exposure to the sector, leveraging ETFs, industry research, and other reliable sources. We then narrowed the list to companies whose year-to-date (YTD) share price performance lagged the broader market, which has gained 13% (S&P 500). From this group, we ranked the 11 weakest performers based on YTD returns, placing stocks with the sharpest decline at the top. Additionally, we included data on hedge fund holdings in these companies as of Q2 2025 to provide further insight into investor interest.
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 26, 2025.
11 Worst Performing Data Center Stocks in 2025
11. DigitalBridge Group Inc. (NYSE:DBRG)
YTD Return: 4.6%
Number of Hedge Fund Holders: 44
DigitalBridge Group Inc. (NYSE:DBRG) is one of the worst-performing data center stocks in 2025. The company leads as a global digital infrastructure asset manager with over $96 billion in assets under management, and it counts itself among the top 3 data center providers in the world (with over 200 data centers). However, its stock has been a laggard with YTD gains of only 4.6%, underperforming the broader market.
On September 11, the company participated in the Goldman Sachs Communacopia + Technology Conference, where CEO Marc Ganzi outlined the company’s strategy for digital infrastructure. Ganzi said that the company is focusing on capitalizing on the significant growth expected from AI inferencing and the expansion of its data centers. He also pointed to strong demand trends in towers, fiber, and data centers, while also emphasizing the growing importance of power availability to support AI-driven growth.
Ganzi also highlighted the power needs of the data center industry, which are expected to nearly triple from 68 to 196 gigawatts in the coming years. To address this, DigitalBridge is investing in grid-independent power solutions, supported by its 22-gigawatt power bank.
The firm is also deploying $50 billion in capital expenditures, aiming to expand fee-related earnings and higher co-investment margins.
DigitalBridge Group Inc. (NYSE:DBRG) is an investment firm focused on digital infrastructure, including data centers, fiber networks, cell towers, and edge assets.
10. NetApp Inc. (NASDAQ:NTAP)
YTD Return: 3.3%
Number of Hedge Fund Holders: 31
NetApp Inc. (NASDAQ:NTAP) is one of the worst-performing data center stocks in 2025. While its stock has not declined (+3.3%), it has also not been able to keep pace with the enthusiasm in the broader data center industry. The company has been facing competition from pure-play cloud providers. However, its hybrid model continues to appeal to enterprises seeking flexibility and cost savings.
Analysts’ views on NetApp currently lean towards the cautious side, with almost two-thirds having a Neutral rating. On September 16, TD Cowen analyst John Blackledge reiterated a Buy rating on the stock with an unchanged price target of $130. This rating was issued shortly after the company presented at the Goldman Sachs Communicopia + Technology Conference on September 9.
At the conference, NetApp shared its early results for fiscal 2026. CFO Wissam Jabry said the company is seeing steady growth in all-flash storage, cloud services, and AI. Still, demand in the U.S. public sector and parts of EMEA remains weak.
Management kept its growth forecast at 2% for the next quarter and 3% for the year, with product margins expected in the mid-to-high 50% range. The company is adding senior hires in North America to lift sales and continues to invest in R&D to strengthen its data and cloud offerings.
NetApp Inc. (NASDAQ:NTAP) provides hybrid cloud and data storage solutions for enterprise clients. Its products range from on-premises hardware to cloud software and data management tools.
