Data Centers REITs
Data Center REITs own and operate critical data storage and transmission infrastructure. These centers are necessary to house the server rooms and networking equipment to support businesses in virtually every industry.
Like other REITs, data center REITs manage properties especially designed for their sector’s specific business needs. In this case, data centers are required to have highly regular power, controlled temperature and humidity, tight building security and other measures necessary to ensure the safety and accessibility of companies’ data.
In addition to renting out space to tenants — be it several tenants in a single building or just one in a hypercenter — data center REITs often provide connection services allowing for physical connections between companies’ servers.
Data center REITs are relatively recession-proof due to the ultra-long-term leases signed by their tenants. They also benefit from the growing need for data-related services, following the rapid growth in data usage currently underway. This growth has only been accelerated by the surge in remote-work popularity and increasing reliance on stable internet connections.
There are just 5 major data center REITs trading on large US stock exchanges. Three large data center REITs are Equinix, Inc. (NASDAQ: EQIX), Digital Realty Trust, Inc. (NYSE: DLR) and CyrusOne, Inc. (NASDAQ: CONE).