15 Best Data Center Stocks to Buy Now

10. Digital Realty Trust Inc. (NYSE:DLR)

Market Cap: $56.3 Billion

Number of Hedge Fund Holders: 44

Digital Realty Trust Inc. (NYSE:DLR) is one of the best data center stocks to buy now. On August 19, analysts from BMO Capital reiterated their Outperform rating on Digital Realty with a $195 price target. His decision comes even as data center stocks have recently come under pressure, which is partly attributed to rising interest rates.

Despite that, the analysts pointed out that second-quarter results across the group were broadly healthy, with estimates moving higher. Demand for data centers remains strong, pricing trends are supportive, and hyperscale customers continue to emphasize infrastructure buildouts to support AI, with sector-wide investments expected to approach $550 billion by 2026.

Against this backdrop, the analysts named Digital Realty its top pick in the space, citing confidence in the company’s ability to deliver high single-digit Core FFO growth. They highlighted that this growth outlook is supported by the company’s backlog and lease mark-to-market potential. As per their report, the analysts are currently modelling Core FFO growth of 7.7% in 2025 and 7.9% in 2026, with an opportunity to push above 10% in 2027.

Earlier on August 11, Michael Funk, an analyst from Bank of America Securities, had reaffirmed a Buy rating on the stock with a steady price target of $210.

Digital Realty Trust Inc. (NYSE:DLR) provides data center, colocation, and interconnection solutions with over 300 data centers spread across more than 25 countries.