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.
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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.
9. Semtech Corp. (NASDAQ:SMTC)
YTD Return: 1.8%
Number of Hedge Fund Holders: 37
Semtech Corp. (NASDAQ:SMTC) is one of the worst-performing data center stocks in 2025. Although the company’s stock is up around 1.8% year-to-date, it has underperformed the broader market and its peers in the data center industry, which have seen an upbeat performance.
That said, on September 28, Robert W. Baird analyst Tristan Gerra reaffirmed a Buy rating on the stock with a $70 price target. His positive view is based on several areas of growth the company is pursuing.
Semtech’s LoRa segment is expected to grow more than 20% in 2026, helped by new uses in security and retail. These applications could open up new markets and expand adoption. According to the analyst, the company is also making progress in AI infrastructure, which has become another key growth driver.
The analyst also believes that among the company’s opportunities, an important one lies in Semtech’s partnerships with large U.S. cloud providers on linear pluggable optics (LPOs). These projects offer higher pricing potential and could boost margins. Additionally, a recent design win with AEC and the chance to lead in ACC opportunities strengthen its long-term outlook.
Semtech Corp. (NASDAQ:SMTC) designs analog and mixed-signal semiconductors used in data centers, industrial automation, and IoT applications.
8. A10 Networks Inc. (NYSE:ATEN)
YTD Return: -0.5%
Number of Hedge Fund Holders: 21
A10 Networks Inc. (NYSE:ATEN) is one of the worst-performing data center stocks in 2025. Its stock is largely flat since the start of the year, which contrasts with the broader strong performance of larger data center-exposed stocks.
On September 24, the company’s new CFO, Michelle Caron, took charge from Brian Becker, who has stepped down and is expected to leave the company at the end of September 2025. Michelle joins from Beckman Coulter Life Sciences, a division of Danaher Corporation, where she served as the VP of Finance and Chief Financial Officer.
Analyst activity on the stock has been scarce, with the latest update coming from BTIG analyst Gray Powell on August 8, where he upgraded the stock to a Buy with a price target of $22. The analyst’s update came after the company reported better-than-expected Q2 2025 results, which were viewed as impressive by him. He believed that this strength could help the company report high-single-digit growth this year and double-digit growth in the future.
A10 Networks (NYSE:ATEN) provides security and infrastructure solutions for on-premises, hybrid cloud, and edge cloud environments.
7. Digital Realty Trust Inc. (NYSE:DLR)
YTD Return: -3.3%
Number of Hedge Fund Holders: 47
Digital Realty Trust Inc. (NYSE:DLR) is one of the worst-performing data center stocks in 2025. Despite being a pure-play on data centers, the stock has lagged with a year-to-date decline of over 3%. However, its capabilities to provide the full spectrum of data center, colocation, and interconnection solutions continue to support its long-term outlook.
Analysts’ views on the stock remain mixed. While TD Cowen analyst John Blackledge reiterated his Hold rating and $163 price target on September 16, Irvin Liu from Evercore ISI reaffirmed his Buy rating with a price target of $200, implying a nearly 17% upside.
On September 17, the company spoke at RBC’s Global Communication Infrastructure Conference, where CFO Matt Mercier discussed the company’s growth strategy with RBC’s John Acker. The discussion highlighted rising demand from AI-related workloads, alongside ongoing challenges around power availability in key markets.
The management also highlighted that Digital Realty expects funds from operations (FFO) per share to grow 6.5% in 2025, above the earlier expectation of 5%. The company also carries an $850 million backlog that is set to contribute meaningfully over the next three years. The company has 3 gigawatts of capacity in service and 750 megawatts under construction, about 60% of which is already leased, indicating strong demand.
Digital Realty Trust Inc. (NYSE:DLR) is a global REIT specializing in data center ownership and colocation services. Its facilities support cloud platforms, enterprise IT, and interconnection services.
6. COPT Defense Properties (NYSE:CDP)
YTD Return: -5.4%
Number of Hedge Fund Holders: 22
COPT Defense Properties (NYSE:CDP) is one of the worst-performing data center stocks in 2025. Its stock’s performance has been lacklustre throughout this year and over the past year (-4%).
The company develops and operates secure data centers tailored for national security, intelligence, and cloud computing workloads. Its portfolio is heavily concentrated in mission-critical locations near the Pentagon and intelligence hubs. This tenant base provides it with stable, long-term leases with low vacancy risk, which in turn result in predictable cash flows. However, overall growth is also limited due to the nature of high-security facilities and depends significantly on the government budget.
A stable cash flow profile has enabled the company to increase its dividend by nearly 11% over the last three years. The stock currently offers a dividend yield of over 4%.
On September 11, at the BofA Securities 2025 Global Real Estate Conference, the company highlighted that, while it had initially set a goal of 400,000 square feet of vacancy leasing for 2025, it had achieved over 350,000 square feet in the first half. With that, they have raised their guidance modestly and are very confident in delivering on the upgraded guidance.
Following this presentation, JPMorgan analyst Anthony Paolone said that the current consensus estimates appear conservative, and thus modestly raised his estimates. As a result, on September 17, he raised his price target on the stock to $33 from $30. However, he maintained a Neutral rating.
5. Equinix Inc. (NASDAQ:EQIX)
YTD Return: -16.2%
Number of Hedge Fund Holders: 66
Equinix Inc. (NASDAQ:EQIX) is one of the worst-performing data center stocks in 2025. On September 25, the company announced several initiatives that will strengthen its position in AI infrastructure and highlight its focus on distributed AI and global interconnection. At its inaugural AI Summit, the company introduced its Distributed AI infrastructure, designed to help enterprises deploy AI workloads efficiently across regions.
This includes an AI-ready backbone, Fabric Intelligence for automated network optimization, and a global AI Solutions Lab to test and validate new AI solutions. These tools aim to support scalable, low-latency AI, including agentic AI capable of operating autonomously. Equinix’s platform now spans over 270 data centers across 77 markets, and has expanded its AI partner ecosystem to over 2,000 vendors.
In parallel, Equinix and Zayo unveiled the AI Infrastructure Blueprint, establishing a standardized framework for AI networking and interconnection. The blueprint defines how high-capacity networks, interconnection hubs, and training and inference data centers should work together. Both these companies are targeting a scalable model for enterprises and AI providers to deploy distributed AI reliably and efficiently.
Equinix Inc. (NASDAQ:EQIX) is a leading global provider of interconnection and colocation services through its extensive network of data centers.
4. GlobalFoundries Inc. (NASDAQ:GFS)
YTD Return: -17.1%
Number of Hedge Fund Holders: 30
GlobalFoundries Inc. (NASDAQ:GFS) is one of the worst-performing data center stocks in 2025. On September 23, the company announced a partnership with Egis Technology at its Technology Summit in Shanghai. The collaboration focuses on advanced smart sensing solutions and will aim to develop direct time-of-flight (dToF) sensors using GF’s 55nm platform for mobile, IoT, and automotive applications.
The new sensors are based on GlobalFoundries’ front-side-illuminated SPAD (single-photon avalanche diode) technology, which offers improved performance in terms of dark count rate and near-infrared detection. By integrating the dToF system on a single chip, which includes drivers, microcontrollers, and ranging cores, the solution reduces size, power consumption, and costs, while accelerating time to market.
Egis has been a provider of fingerprint sensors and this move will extend its push into the 3D sensing market, building on its initial collaboration with GlobalFoundries in 2022. Potential uses of the technology include laser-assisted autofocus in smartphones and laptops, presence detection in smart appliances and buildings, and collision avoidance in robots and drones.
Production is already available at GF’s Singapore facility, with design support offered through its GlobalShuttle program. The partnership highlights GF’s strategy to expand its role in enabling intelligent sensing technologies for emerging connected devices.
GlobalFoundries Inc. (NASDAQ: GFS) is a semiconductor foundry that manufactures chips for the automotive, industrial, communications, and consumer electronics sectors.
3. Akamai Technologies Inc. (NASDAQ:AKAM)
YTD Return: -20.5%
Number of Hedge Fund Holders: 42
Akamai Technologies Inc. (NASDAQ:AKAM) is one of the worst-performing data center stocks in 2025. Its stock’s performance has been quite weak (-20.5%) this year. The Goldman Sachs analyst, Gabriela Borges, captured the essence of this underperformance in her note in mid-August.
She wrote that the stock may continue to remain rangebound until it shows an apparent uptick in growth. The company is lagging as a network security platform, and she remained unsure whether its newer initiatives will be enough to reinvigorate material growth.
Still, the company is taking steps to strengthen its offerings with new products in September. On September 24, Akamai introduced Managed Service for API Performance, a service built on its APIContext platform. In simpler terms, APIs are the digital links that connect apps and services. This solution helps businesses keep their APIs fast, secure, and reliable, and provides round-the-clock monitoring, ongoing testing, and expert analysis. This, in turn, gives companies extra support as they deal with increasingly complex digital operations.
Earlier, on September 12, Akamai launched Media Services Live 5 (MSL5) with partner Harmonic (NASDAQ:HLIT). The new platform, running on Akamai Cloud, is designed to improve live streaming with quicker performance, longer DVR capabilities, and better tools for managing events. These upgrades are especially important for live sports and other large broadcasts, where viewers demand smooth and lag-free experiences.
Through these initiatives, Akamai is broadening its services to capture more business from enterprises and media providers.
Akamai Technologies Inc. (NASDAQ:AKAM) operates a global content delivery network (CDN) and provides cybersecurity and edge computing services.
2. Marvell Technology Inc. (NASDAQ:MRVL)
YTD Return: -24.7%
Number of Hedge Fund Holders: 76
Marvell Technology Inc. (NASDAQ:MRVL) takes the second place in our list of worst-performing data center stocks in 2025, with a nearly 25% YTD decline.
The overall consensus of analysts remains largely positive, but some analysts still hold a cautious stance. On September 25, Bank of America Securities’ Vivek Arya maintained a Hold rating on Marvell Technology (NASDAQ: MRVL) with a price target of $88. He pointed out that management’s upbeat commentary, coupled with an expanded stock buyback plan, has provided greater confidence in sales growth for fiscal 2027 and 2028. These forecasts now appear more in line with market expectations.
However, Arya noted that Marvell’s AI segment is likely to expand at a slower pace than peers, which could weigh on its competitive position. The company’s largest customer, Amazon, has shown flat demand on a quarter-over-quarter basis, while a new project with Microsoft brings potential but also uncertainty. According to the analyst, the Microsoft engagement involves a customer with limited experience in scaling accelerator ASICs, and competition from established GPU providers remains a significant headwind.
The analyst also highlighted competitive pressures from Taiwan-based rivals, which could challenge margins and market share. While visibility in data center demand has improved and share repurchases support near-term sentiment, risks remain around limited earnings revisions and execution on large custom silicon projects with AWS and Microsoft.
Marvell Technology Inc. (NASDAQ:MRVL) designs and develops semiconductors for data infrastructure, including networking, storage, and compute solutions. Its products are used in cloud data centers, 5G networks, and enterprise systems.
1. Rackspace Technology Inc. (NASDAQ:RXT)
YTD Return: -37.1%
Number of Hedge Fund Holders: 11
Rackspace Technology Inc. (NASDAQ:RXT) is one of the worst-performing data center stocks in 2025. At the top of our list, Rackspace’s stock has declined by over 45% over the last year, and 2025 hasn’t been much different so far. The company has faced several challenges lately, including slowing growth, mounting losses, a lack of transformational deals, and significant leverage.
The company is making efforts to stabilize its private cloud revenue and expand its presence in mid-market and enterprise segments. While there have been improvements in some metrics and cash flow generation, the company will need to execute its strategy strongly to regain investor confidence.
On the positive side, the company appointed Gajen Kandiah as Chief Executive Officer on September 3. He has replaced Mr. Amar Maletira, who will continue with the company as the Vice Chairman of the Board. Gajen is expected to lead the company’s AI-first multi-cloud strategy, with his deep expertise across services, infrastructure, software, and AI.
Moreover, on September 12, the company announced that it had achieved the Amazon Web Services (AWS) Automotive Competency. This designation denotes its expertise in accelerating the digital transformation on AWS for automotive companies and their suppliers.
Rackspace Technology Inc. (NASDAQ:RXT) is a global cloud and IT services company specializing in multi-cloud solutions, managed hosting, and data center infrastructure. It helps enterprises modernize across AWS, Azure, Google Cloud, and private platforms.
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