The AI buildout has turned the old-school data center real estate investment trusts (REITs) from a niche real estate subsector into one of the clearest ways to own the physical infrastructure behind the artificial intelligence boom, and the numbers are starting to back that up. One of the biggest companies in the arena, Equinix (NASDAQ:EQIX | EQIX Price Prediction), posted $2.444 billion in first-quarter 2026 revenue, up 10% year over year, and a record $378 million in first-quarter bookings, while another, Digital Realty Trust (NYSE:DLR), logged 16% year-over-year sales growth and has a $1.8 billion backlog. Vacancy in primary U.S. markets remains near record lows. Hyperscalers are locking in 15-year leases years before facilities even break ground, and grid interconnection queues stretching out to 2030 mean the supply squeeze isn’t going away anytime soon.
For investors looking to play the AI infrastructure trade without betting on a single chipmaker, the legacy data center REITs offer a compelling combination of locked-in demand, dividend income, and structural scarcity. We have covered the data center REITs for years here at 24/7 Wall St., and one of the compelling reasons, then and now, is that all three companies pay respectable, dependable dividends to shareholders. Those dividends can increase the possibility for higher total return. With their respective infrastructures firmly in place, they offer investors reliable income alongside solid total return potential. While dividends are much smaller than they were five and 10 years ago, they are still higher than those that most technology companies pay.
Here are the three data center REITs investors should consider now. All are rated Buy at the top Wall Street firms that we cover.
Digital Realty Trust
This is one of the top old-school data center REITs, and it pays a solid 2.82% dividend. Digital Realty Trust owns, acquires, develops, and operates data centers through its operating partnership subsidiary. The company is focused on providing data center, colocation, and interconnection solutions for domestic and international customers across a variety of industry verticals, ranging from cloud and information technology services, communications, and social networking to financial services, manufacturing, energy, healthcare, and consumer products.
It provides its customers with access to the connected data communities with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. The company’s PlatformDIGITAL is a global data center platform for scaling digital businesses, enabling customers to deploy critical infrastructure through a global data center provider.
The company recently took a $3.5 billion stake in Blackstone’s three data centers in Virginia. This gives the company greater exposure in Virginia, the largest data center market in the United States.
Truist Financial has a Buy rating with a $225 target price.
Equinix
This is the world’s largest data center REIT, operating over 280 global facilities, and it pays a 1.92% dividend. The digital infrastructure company’s platform, Equinix, combines a global footprint of International Business Exchange and xScale data centers in the Americas, Asia-Pacific, Europe, and elsewhere; interconnection offerings; and digital ecosystems to serve a large and diverse set of customers.
The company offers a variety of enabling solutions that support a customer’s need to implement, operate, and maintain its colocated deployments. Its solutions include:
- Equinix SmartView
- Equinix Smart Hands
- Equinix Smart Build
- Equinix Managed Solutions and Enablement Services
Equinix SmartView is a fully integrated monitoring software that provides customers with visibility into the operating data relevant to their specific Equinix footprint. Its interconnection solutions connect businesses directly within and between its data centers across its platform, including Equinix Fabric and Fiber Connect, among others.
Citigroup has a Buy rating with a $1,260 target price.
Iron Mountain
Iron Mountain (NYSE: IRM) has transformed from a traditional physical document storage business into a rapidly growing digital company. It is recognized as one of the best data center REITs in the market and pays a solid 2.81% dividend. This information management services provider offers services across digital transformation, information security, and data center and asset lifecycle management.
Iron Mountain helps businesses to unlock value and intelligence from their stored digital and physical assets, while operating through two segments. The Global Records and Information Management Business segment includes such offerings as:
- Records management
- Data management
- Global digital solutions
- Secure shredding
- Media and archive services
- Consumer storage
The Global Data Center Business segment provides data center facilities and capacity to protect mission-critical assets and ensure the continued operation of its customers’ information technology (IT) infrastructure with flexible data center options.
J.P. Morgan has an Overweight rating with a $138 price objective.
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