What is the yield of the data center REITs?

As of mid-December 2025, the forward yield for DLR was 3.2%, and the forward yield for EQIX was 2.5%

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 two pure-play data center REITs listed on U.S. stock exchanges: Digital Realty Trust and Equinix.

Are data center REITs a good investment?

Data center REITs can be good investments over the long term. For example, Digital Realty Trust is up almost 162% since September 2015. Equinix is up almost 122% during the same time period. They both also pay dividends, though how good they are varies based on the stock price at the moment. 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 being ubiquitous in today's world, data center REITs are closer to utilities than they are anything else. Although not technically a service that people must have to survive, the world is a difficult place without adequate computing power and space for businesses to run their operations online. This can make data center REITs a good part of an inflation hedging strategy.

How do data center REITs fit in an investment portfolio?

Data center REITs fill a lot of different places in an investment portfolio. They can act as primary investments, especially for investors looking for exposure to the tech industry with a dividend like a REIT. They can also behave as inflation hedges, in that data center REITs are similar to utilities.

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 Mar 17, 2026 at 11:05 AM EST | Fact-checked by Frank Bass

Key Points

Data center REITs profit from increasing data usage and AI growth, offering long-term leases for stable revenue.
Interest rates and market oversupply present financial risks to data center REITs' profitability.
Investing in data center REITs like Digital Realty and Equinix can be part of an inflation-hedging strategy.

Data center REITs own facilities that operate crucial data infrastructure. They own and manage facilities that customers use to house servers and networking equipment to store and access data. With data usage growing, demand for these facilities continues to expand.

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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Two top data center REITs to consider in 2026

According to the National Association of Real Estate Investment Trusts (Nareit), as of early 2026, only two data center REITs exist that are larger than micro caps, 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 cap	Dividend yield
Digital Realty Trust (NYSE:DLR)	$66.2 billion	2.59%
Equinix (NASDAQ:EQIX)	$104.5 billion	1.82%

Data as of May 17, 2026. Showing 2 of 2 tickers.

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1. Digital Realty Trust

NYSE: DLR

Digital Realty Trust

Today's Change

(-2.25%) $-4.33

Current Price

$188.51

Key Data Points

Market Cap

$66B

Day's Range

$187.85 - $190.88

52wk Range

$146.23 - $208.14

Volume

2.6M

Avg Vol

Gross Margin

25.66%

Dividend Yield

2.59%

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Digital Realty Trust 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 allowed the data center REIT to expand its core funds from operations (FFO) at a rapid pace since 2005, now operating over 300 data centers in 50 metro areas. Its $73 billion enterprise value is a direct result of 20 years of consecutive revenue growth.

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

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2. Equinix

NASDAQ: EQIX

Equinix

Today's Change

(-1.88%) $-20.24

Current Price

$1059.44

Key Data Points

Market Cap

$104B

Day's Range

$1055.20 - $1077.44

52wk Range

$710.52 - $1128.68

Volume

454K

Avg Vol

599K

Gross Margin

27.71%

Dividend Yield

1.82%

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Equinix is one of the world's largest digital infrastructure companies. It has more than 10,500 customers and 507,000 total interconnections on its systems, spanning 77 metro areas.

Equinix also has an excellent growth track record. Over the last 10 years, it's 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, allowing it to create 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.

How to invest in data center REITs

Open your brokerage app: Log in to your brokerage account where you handle your investments.
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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Understanding data center REITs

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.

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 use the space to house their networking equipment and servers, allowing them to process and store data.

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.

Types of data center REITs

Currently there are really not "types" of data center REITs. According to Nareit, there are literally just two pure play REITs in operation, and they are structured very similarly. They provide data storage and equipment to power some of the world's largest companies, ensuring they have both the physical and data storage space that they need to do business.

A third company is sometimes lumped into this group, but it largely focuses on storing and maintaining paper-based data, along with some data center functions.

Advantages of investing in data center REITs

Data center REITs allow investors to benefit from the growth in data usage. With the rise of artificial intelligence (AI) and the immense computing power required for it, 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.

Another benefit of data center REITs is that they tend to be relatively recession-proof because most tenants sign long-term contracts for space in a data center, allowing data center REITs to generate recurring revenue.

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FAQ

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.

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

Two top data center REITs to consider in 2026

1. Digital Realty Trust

NYSE: DLR

Key Data Points

2. Equinix

NASDAQ: EQIX

Key Data Points

How to invest in data center REITs

Understanding data center REITs

Types of data center REITs

Advantages of investing in data center REITs

Related investing topics

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Healthcare REITs

REIT ETFs

FAQ

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

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Two top data center REITs to consider in 2026

NYSE: DLR

Key Data Points

NASDAQ: EQIX

Key Data Points

How to invest in data center REITs

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?

Understanding data center REITs

Types of data center REITs

Advantages of investing in data center REITs

Risks of investing in data center REITs

Data center REITs vs. data center ETFs

Data-powered growth

Investing tips

The future of data center REITs