5 Best Data Center Stocks to Buy Now

3. Amazon.com, Inc. (NASDAQ:AMZN)

Market Cap as of March 27: $1.01 Trillion
Number of Hedge Fund Holders: 240

Amazon Web Services (AWS) is a cloud data services platform provided by Amazon.com, Inc. (NASDAQ:AMZN), which allows users to buy data space as they scale and adjust their plan based on seasonal demand. Amazon Web Services (AWS) operates over 125 physical data centers in more than 20 countries, with plans to have a total of 34 regions available by the end of 2024. Each region contains 3 to 6 isolated locations called availability zones, which have independent power, cooling, and physical security, and are connected with a redundant fiber-optic network.

AWS is investing $35 billion in building data centers across Virginia to expand its cloud computing capabilities, creating 1,000 jobs. AWS is on pace to hit $100 billion in revenue this year and plans to launch 23 more Local Zones in metro areas globally.

ClearBridge Investments, an investment management company, mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter. Here is what the fund said:

“Growing macroeconomic concerns weighed on mega cap names in the portfolio, with consumer discretionary holding Amazon.com, Inc. (NASDAQ:AMZN) feeling pressure from a slowing macroeconomic environment that could weigh on e-commerce and AWS segments. The main detractors from absolute returns were positions in Amazon.com, Regal Rexnord, Apple, Brookfield Renewable and Progyny.”