Data center REITs own and manage highly specialized facilities that house the critical IT infrastructure that powers today’s economy. These properties include a variety of features to help keep servers and data safe, including uninterruptible power supplies, air-cooled chillers, and physical security.
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A wide variety of companies including Amazon, Apple, AT&T, Google, IBM, Meta, Microsoft, Oracle, and Ubisoft use REIT-owned data centers. Continuing developments in artificial intelligence (AI) are expected to fuel demand and shape the future of the data center sector.
Who Invests in Data Center REITs?
Along with individuals who invest in REITs either directly or through Thrift Savings Plans (TSPs), 401ks, etc., institutional investors such as pension funds, endowments, foundations, insurance companies, and bank departments also invest in REITs.
How to Invest in Data Center REITs
There are numerous data center REITs listed on the FTSE Nareit US Real Estate Indexes. Many investors acquire shares in these REITs via REIT mutual funds or exchange-traded funds (ETFs), but individuals can also invest directly in a REIT with the help of a broker.
Overview
1/31/2025, Source: FTSE
Number of REITs
2
Dividend Yield
2.29%
YTD Total Return
-4.87%
January Total Return
-4.87%
2024 Total Return
25.22%
Quarterly Data
Source: Nareit T-Tracker
| Q3 2024 | 2024 | |
|---|---|---|
| FFO ($M) | $1,129 | $3,242 |
| NOI ($M) | $2,037 | $6,006 |
| Dividends paid ($M) | $832 | $2,464 |
| SS NOI | - | |
| Occupancy Rate | - |
