In this article, we will look at the 7 Best Data Center REITs to Buy According to Analysts.
On January 13, Andy Power, CEO of Digital Realty, appeared on a CNBC Property Play interview to discuss the state of data center real estate. He noted that as hyperscalers, including Nvidia, Google, Meta, and Amazon, announce more data centers and increase AI capital expenditure, the market has been concerned that the data center REIT might be overbuilding for a market that is still infant.
Andy has been in the real estate sector for more than 25 years. He believes that there is not at all too much construction in the sector. Andy elaborated that this statement is based on actual demand from real customers who have signed long-term 15-year contracts. He noted that, according to JLL, the data center REIT is expected to expand globally from nearly 103 gigawatts to more than 200 gigawatts by 2030. This is driven by increased demand for artificial intelligence, which is rapidly changing the data center landscape and REIT as well.
With that, let’s take a look at the 7 Best Data Center REITs to Buy According to Analysts.
Our Methodology
To curate the list of 7 Best Data Center REITs to Buy According to Analysts, we used screeners, financial media, and Reddit. Using these sources, we identified data center REITs that are popular among analysts and hedge funds. Lastly, we ranked the stock in ascending order of the analyst upside potential. We have limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. This list includes pure-play data center REITs as well as REITs and real estate companies with meaningful exposure to data center infrastructure.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
7 Best Data Center REITs to Buy According to Analysts
7. Prologis, Inc. (NYSE:PLD)
Analyst Upside: 6.88%
Number of Hedge Fund Holders: 54
Prologis, Inc. (NYSE:PLD) is one of the Best Data Center REITs to Buy According to Analysts. It is a leading global real estate investment trust focused primarily on logistics and industrial properties, owning, operating, and developing approximately 1.3 billion square feet of facilities across 20 countries on four continents.
The company also leverages its prime land bank near urban power infrastructure to develop data center “powered shells,” securing over 5 GW of power capacity, including 450 MW under construction.
Recently, on May 7, BMO Capital upgraded Prologis, Inc. to Outperform from Neutral and raised the price target from $137 to $162. The firm noted that the company has the ability to benefit from data center demand. BMO also highlighted that in the first quarter earnings, data center suppliers represented around 10% of the company’s new leasing. The firm expects Prologis, Inc.’s earnings growth to accelerate based on growing data center demand.
6. Iron Mountain Incorporated (NYSE:IRM)
Analyst Upside: 7.89%
Number of Hedge Fund Holders: 37
Iron Mountain Incorporated (NYSE:IRM) is one of the Best Data Center REITs to Buy According to Analysts. It is an REIT that specializes in information management services, operating through its Global Records and Information Management (RIM) and Global Data Center segments.
Recently, on May 1, Truist analyst Tobey Sommer raised the firm’s price target for Iron Mountain Incorporated from $130 to $140 and maintained a Buy rating on the shares. The rating follows the company’s fiscal Q1 2026 earnings, released on April 30. During the quarter, the company posted $1.94 billion in revenue, up 21.58% year-over-year and ahead of expectations by $74.59 million. Moreover, the GAAP EPS of $0.48 also topped the expectations by $0.06.
Notably, the Data Center revenue for the quarter grew 47% year-over-year to $255 million, driven by an increase in leasing, pricing, and power ramping. Truist noted that the data center lease trend is expected to drive the stock price higher due to a larger total addressable market.
The company leased 22 megawatts in Q1 and an additional 10 megawatts in April. Management expects to exceed the guidance of more than 100 megawatts.
5. Blackstone Inc. (NYSE:BX)
Analyst Upside: 11.50%
Number of Hedge Fund Holders: 84
Blackstone Inc. (NYSE:BX) is one of the Best Data Center REITs to Buy According to Analysts. The company operates as a leading alternative asset manager with extensive real estate operations. Recently, the company filed for an IPO of its Blackstone Digital Infrastructure Trust (BXDC), a dedicated data center REIT aiming to raise $1.75 billion to acquire stabilized, income-generating properties leased long-term to investment-grade hyperscalers such as cloud giants.
As per a Bloomberg report published on May 6, Blackstone Digital Infrastructure Trust Inc plans to list on the NYSE stock exchange under the ticker symbol BXDC. Moreover, Goldman Sachs & Co. LLC, Citigroup, and Morgan Stanley are serving as joint lead book-running managers for the proposed offering.
That said, on April 27, Piper Sandler raised the price target on Blackstone from $122 to $130, while maintaining a Neutral rating on the shares. The updated price target follows the company’s fiscal Q1 2026 earnings, released on April 23. During the quarter, Blackstone Inc. posted $3.43 billion in revenue, up 24.22% year-over-year and ahead of expectations by $37.35 million. Moreover, the GAAP EPS of $1.36 also surpassed expectations by $0.04.
Piper Sandler noted the quarter to be the second-best fundraising performance since 2022. The firm lowered its earnings estimates to $5.91 from $6.11 for 2026 and to $7.57 from $7.66 for 2027. The firm noted expected pressure on management fees from softness in credit fee-earning assets under management and real estate fees.
4. COPT Defense Properties (NYSE:CDP)
Analyst Upside: 11.99%
Number of Hedge Fund Holders: 20
COPT Defense Properties (NYSE:CDP) is one of the Best Data Center REITs to Buy According to Analysts. The company is a self-managed REIT specializing in mission-critical real estate proximate to U.S. government defense installations. It also develops and operates high-security “powered shell” data centers tailored for hyperscale tenants and government missions, leveraging strategic locations near power infrastructure and defense hubs.
Recently, on April 29, COPT Defense Properties was reiterated with a Buy rating by Cantor Fitzgerald analyst Richard Anderson. The analyst has maintained the price target of $37. The rating follows COPT’s fiscal Q1 2026 earnings, released on April 27.
During the quarter, the company posted $200.64 million, reflecting 6.8% year-over-year increase and ahead of expectations by $4.4 million. Moreover, the GAAP EPS of $0.34 also topped expectations by $0.01. Notably, the company raised its dividend by $0.06, marking the fourth consecutive year of dividend growth.
Looking ahead, management has raised Funds from Operations guidance for 2026 to $2.76 at midpoint, same-property cash Net Operating Income growth by 50 basis points to 3%, tenant retention by 250 basis points to 82.5%, and new investment capital commitments by $40 million to $290 million.
3. Digital Realty Trust, Inc. (NYSE:DLR)
Analyst Upside: 12.64%
Number of Hedge Fund Holders: 43
Digital Realty Trust, Inc. (NYSE:DLR) is one of the Best Data Center REITs to Buy According to Analysts. The company owns, acquires, develops, and operates data centers globally through its operating partnership.
Recently, on April 27, Scotiabank raised the firm’s price target on Digital Realty Trust, Inc. from $195 to $222, while maintaining a Sector Perform rating on the shares. The firm raised the price target after the company exceeded expectations during its fiscal Q1 2026 earnings. The revenue for the quarter came in at $1.64 billion, reflecting 16.16% year-over-year growth and ahead of the consensus by $33.93 million. Moreover, the GAAP EPS of $0.46 also topped expectations by $0.01.
Scotiabank cited Digital Realty Trust, Inc., which experienced strong demand for digital infrastructure. Moreover, the order intake also improved, taking the company’s total backlog to $1.8 billion and providing visibility into 2027 and 2028. Management noted that the total pipeline under construction is around $16.5 billion gross, reflecting 60% improvement from year-end.
2. Equinix, Inc. (NASDAQ:EQIX)
Analyst Upside: 13.10%
Number of Hedge Fund Holders: 51
Equinix, Inc. (NASDAQ:EQIX) is one of the Best Data Center REITs to Buy According to Analysts. Recently, on May 7, Mizuho analyst Vikram Malhotra raised the firm’s price target on Equinix, Inc. (NASDAQ:EQIX) from $1,165 to $1,200 and maintained a Buy rating on the shares.
The rating comes after the company released its fiscal Q1 2026 results on April 29. During the quarter, the company posted $2.3 billion recurring revenue, 10% year-over-year and beating the high end of expectations on normalized and constant currency basis. The total revenue was $2.44 billion, up 6.84% year-over-year. The EPS came in at $4.20, reflecting 20% increase over the same quarter of the previous year.
Following the release, Bernstein SocGen Group reiterated a Buy rating on the shares with a price target of $1,222. The firm highlighted the interconnection segment as a key driver of growth. The company grew its interconnection revenue by 9%, driven by 26% growth in Fabric revenue. Moreover, the Fabric bookings also rose 70% year-over-year. The firm noted that the segment represents almost 17% of the company’s total revenue and is considered high margin. Moreover, the company has also added more than 110 Neocloud nodes across its footprint.
Equinix, Inc. is a digital infrastructure and data center company that provides colocation, interconnection, and cloud services to businesses worldwide.
1. American Tower Corporation (NYSE:AMT)
Analyst Upside: 18.96%
Number of Hedge Fund Holders: 71
American Tower Corporation (NYSE:AMT) is a global real estate investment trust focused on owning, operating, and developing multitenant communications real estate, with a portfolio of nearly 150,000 sites leased to wireless carriers, broadcasters, and government. The company also maintains a smaller US Data Centers segment featuring edge and metro facilities. It is also one of the Best Data Center REITs to Buy According to Analysts.
American Tower Corporation recently posted fiscal Q1 2026 earnings on April 28. During the quarter, the revenue came in at $2.74 billion, up 6.82% year-over-year and ahead of Wall Street’s expectations by $86.78 million. The GAAP EPS of $1.84 also topped the consensus by $0.25.
Notably, during Q1, the data center revenue grew 17%, driven by high demand from hybrid and multicloud installations. Management also noted that increased use cases of AI are accelerating growth in this segment.
Following the release on April 30, Truist analyst Matthew Niknam raised the firm’s price target for American Tower Corporation from $205 to $208 and maintained a Buy rating on the shares. The firm noted Q1 earnings beat as one of the primary reasons behind the updated price target. The firm finds the company to be in a strong position and expects positive inflation points ahead.
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