What is the yield of the data center REITs?

As of late September 2026, the forward yield for DLR was 2.70%, and the forward yield for EQIX was 1.99%

Who owns the most data centers in the U.S.?

Digital Realty Trust owns the most facilities in the U.S. at 115, with Equinix second with 64.

Which REIT owns data centers?

There are currently only three pure-play data center REITs listed on U.S. stock exchanges: Digital Realty Trust, Equinix, and Blackstone Digital Infrastructure Trust.

Are data center REITs a good investment?

Data center REITs can be good investments over the long term, but it's not guaranteed. For example, as of late September 2026, Digital Realty Trust is up nearly 17% over five years. Equinix is up over almost 21% during the same time period. They both pay dividends, though their yields vary depending on the stock price. Right now, their yield is fairly low.

Do data center REITs pay dividends?

REITs are required to distribute at least 90% of their taxable income to shareholders as dividends each year, so unless your REIT isn't making any money, some dividends will come from it.

Can data center REITs hedge against inflation?

With computers and internet access ubiquitous in today's world, data center REITs are closer to utilities than they are anything else. Although not technically necessary for survival, adequate computing power and storage space for businesses to run their operations online are important. This can make data center REITs a significant part of an inflation-hedging strategy.

How do data center REITs fit in an investment portfolio?

Data center REITs can fill many roles in an investment portfolio. They can serve as primary investments, especially for investors seeking exposure to the tech industry and a dividend, like a REIT. They can also act as inflation hedges, in that data center REITs are similar to utilities.

3 Best Data Center REITs for 2026 and How to Invest

Choosing data center REITs can come with great rewards as you support the expansion of cutting-edge connected technologies.

By Kristi Waterworth – Updated Sep 25, 2026 at 4:19 PM EST | Fact-checked by Margo Winton Parodi

Key Points

Data center REITs like Digital Realty Trust and Equinix offer solid investment choices due to growth in data use.
Digital Realty Trust operates over 300 data centers, showing 21 years of consecutive revenue growth.
Equinix, managing 522,000 interconnections, aims to sustain expansion via developments and acquisitions.

Like most other real estate investment trusts (REITs), data center REITs rent space in their facilities to tenants. They typically rent space to multiple customers, as in co-location, but can rent the entire facility to one tenant. The tenants house their networking equipment and servers in the space, enabling them to process and store data. As data usage grows, demand for these facilities continues to increase.

A data center is a specially designed facility consisting of the building shell, electrical systems, heating, ventilation, and air conditioning (HVAC) mechanical systems, and other commercial space. Data centers feature highly secure and redundant equipment. They aim to provide customers with uninterrupted access to their data at any time.

In addition to renting space, data center REITs provide several other specialized services to their customers, including highly reliable power, a regulated temperature, and physical building security. Data center REITs also provide interconnection services to their clients, meaning a physical network connection between two parties.

Here's a closer look at data center REITs and why investors might want to consider the sector.

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An infographic outlining the advantages and risks of investing in data center REITs (real estate investment trusts). — Image source: The Motley Fool.

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3 top data center REITs for 2026

According to the National Association of Real Estate Investment Trusts (Nareit), as of early 2026, only three data center REITs larger than micro caps exist, and they primarily focus on owning and operating data centers. Here's a closer look at these players.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
Digital Realty Trust (NYSE:DLR)	$66.2 billion	2.73%
Equinix (NASDAQ:EQIX)	$101.2 billion	1.97%
Blackstone Digital Infrastructure Trust (NYSE:BXDC)	$1.7 billion	0.00%

Data as of Oct 3, 2026. Showing 3 of 3 total entries.

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1. Digital Realty Trust

NYSE: DLR

Digital Realty Trust

Premium Feature

Moneyball Superscore

84/100

Today's Change

(1.17%) $2.06

Current Price

$178.55

Key Data Points

Market Cap

$66B

Day's Range

$177.35 - $180.48

52wk Range

$146.23 - $208.14

Volume

1.7M

Avg Vol

2.4M

Gross Margin

28.41%

Dividend Yield

2.73%

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Digital Realty Trust (DLR +1.17%) is one of the largest data center operators in the world. In addition to renting space in its facilities to companies to store their networking and storage equipment, Digital Realty also leases entire data center shells to other operators, including fellow data center REIT Equinix.

Digital Realty Trust has delivered excellent results for investors over the years. It has spent billions of dollars buying data centers to complement its organic growth. Those two growth drivers have enabled it to rapidly expand its core funds from operations (FFO) since 2005, and it now operates more than 300 data centers across 55 metro areas. Its $87 billion enterprise value is a direct result of 21 years of consecutive revenue growth.

The REIT has a strong financial profile, including an investment-grade credit rating and a conservative dividend payout ratio. Those features give it the flexibility to continue growing in the future.

2. Equinix

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NASDAQ: EQIX

Equinix

Premium Feature

Moneyball Superscore

86/100

Today's Change

(1.32%) $13.39

Current Price

$1,025.72

Key Data Points

Market Cap

$101B

Day's Range

$1017.57 - $1036.52

52wk Range

$720.62 - $1128.68

Volume

331.2K

Avg Vol

541.8K

Gross Margin

31.69%

Dividend Yield

1.97%

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Equinix (EQIX +1.32%) is one of the world's largest digital infrastructure companies. It has more than 10,500 customers and 522,000 total interconnections on its systems, spanning 77 metro areas.

Equinix also has an excellent growth track record. Over the last 10 years, it has grown its revenue from $2.726 million to $9.217 million. One factor driving its steady growth is its high-recurring revenue business model. On top of that, the REIT has a knack for steadily expanding its operations through ground-up developments and acquisitions, thereby creating significant shareholder value.

Like Digital Realty Trust, Equinix has an excellent financial profile. That gives it ample financial flexibility to continue expanding its data center portfolio.

3. Blackstone Digital Infrastructure Trust

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NYSE: BXDC

Blackstone Digital Infrastructure Trust

Today's Change

(-0.06%) $-0.01

Current Price

$17.27

Key Data Points

Market Cap

$1.7B

Day's Range

$17.23 - $17.82

52wk Range

$16.95 - $22.90

Volume

2.2M

Avg Vol

1.5M

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Blackstone Digital Infrastructure Trust (BXDC -0.06%) held its IPO in May 2026, and so far, the stock performance has been underwhelming. Despite its intention to focus on newly constructed cloud and AI data centers, it has a long way to go to catch up to other players in this area. It's currently pre-revenue, according to its Q2 2026 financial statements, and it doesn't appear to yet actually own or operate any data centers -- so as of this writing, calling it a pure-play data center REIT may be stretching the bounds of what's possible with that phrase.

It is, however, affiliated with Blackstone, Inc., a massive asset manager, so it has the backing of an established name that can carry it to deals that other start-ups may not have access to. As of now, this REIT is nothing but hopes and dreams, so anyone investing in it needs to be aware of that. Whether that means getting in on the ground floor of the next Digital Realty or the next WeWork, it's difficult to say.

How to invest in data center REITs

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in data center REITs

Data center REITs have benefited from the explosive growth in data usage over the years. This secular trend has allowed these REITs to expand their portfolios, driving fast-paced revenue, earnings, and dividend growth. Those upward trends aren't showing any signs of stopping, given the current projections for data growth in the coming years.

Benefits of investing in data center REITs include:

Tapping into the growth in data usage. With the rise of artificial intelligence (AI) and the immense computing power it requires, the need for server farms and large facilities capable of significant data processing will continue to grow. That should drive the need for additional infrastructure to transmit and store data, including more data center capacity.
Recession-proofing your portfolio. Most tenants sign long-term contracts for data center space, allowing data center REITs to generate recurring revenue.
Investing in AI without investing in AI. If you've wanted to get into an AI investment but don't feel like you know enough about it, a data center REIT might be the answer. After all, they benefit if AI thrives. The more data that's used, the more data centers will grow.

Data center REITs are less risky than many other real estate investments and technology stocks. However, they aren't without risk. Here's a look at some of the factors that can affect these REITs.

Interest rate risk: Rising interest rates increase borrowing costs, which affects all REITs because they tend to borrow heavily to expand. Rising rates make lower-risk, yield-focused investments, such as bonds, more attractive. That often pressures REITs to raise their dividend yields to compensate investors for their greater risk.
Oversupply risk: Data center operators often build new capacity on speculation. If they build too many data centers, the surplus can affect occupancy levels and rental rates. This is currently a significant risk to monitor, as everyone and their uncle is building a new data center to try to stay ahead of AI demand.
Environmental risks: Data centers consume significant amounts of energy and water to keep servers and networking equipment running and cooled. They face environmental risks from , storms, and droughts that can affect their ability to deliver 100% uptime.

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Data Center REITs FAQ

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

TMFMaldivesBlue

@MaldivesBlues

Kristi Waterworth has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust and Equinix. The Motley Fool has a disclosure policy.

3 Best Data Center REITs for 2026 and How to Invest

Choosing data center REITs can come with great rewards as you support the expansion of cutting-edge connected technologies.

Key Points

3 top data center REITs for 2026

1. Digital Realty Trust

NYSE: DLR

Key Data Points

2. Equinix

NASDAQ: EQIX

Key Data Points

3. Blackstone Digital Infrastructure Trust

NYSE: BXDC

Key Data Points

How to invest in data center REITs

Benefits and risks of investing in data center REITs

Related investing topics

Retail REITs

Mortgage REITs

Healthcare REITs

REIT ETFs

Data Center REITs FAQ

What is the yield of the data center REITs?

What is the yield of the data center REITs?

Who owns the most data centers in the U.S.?

Who owns the most data centers in the U.S.?

Which REIT owns data centers?

Which REIT owns data centers?

Are data center REITs a good investment?

Are data center REITs a good investment?

Do data center REITs pay dividends?

Do data center REITs pay dividends?

Can data center REITs hedge against inflation?

Can data center REITs hedge against inflation?

How do data center REITs fit in an investment portfolio?

How do data center REITs fit in an investment portfolio?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

3 top data center REITs for 2026

NYSE: DLR

Key Data Points

Retail REITs

Mortgage REITs

Healthcare REITs

REIT ETFs

Data Center REITs FAQ

What is the yield of the data center REITs?

What is the yield of the data center REITs?

Who owns the most data centers in the U.S.?

Who owns the most data centers in the U.S.?

Which REIT owns data centers?

Which REIT owns data centers?

Are data center REITs a good investment?

Are data center REITs a good investment?

Do data center REITs pay dividends?

Do data center REITs pay dividends?

Can data center REITs hedge against inflation?

Can data center REITs hedge against inflation?

How do data center REITs fit in an investment portfolio?

How do data center REITs fit in an investment portfolio?

Benefits and risks of investing in data center REITs

Methodology: How these stocks were chosen

Data center REITs vs. data center ETFs

The bottom line

2. Equinix

3. Blackstone Digital Infrastructure Trust

How to invest in data center REITs

NASDAQ: EQIX

Key Data Points

NYSE: BXDC

Key Data Points