Which companies can benefit from the AI data centre boom? 🎯

4:29 PM 14 May 2024

Investments in data centres are becoming increasingly attractive due to the rapid expansion of data-driven technologies, particularly AI. As consumers and businesses are projected to generate twice as much data in the next five years as they have in the past decade, the need for robust data storage and processing facilities is surging. This demand is further amplified by the growth of cloud computing, e-commerce, and streaming services, all of which rely heavily on data centres. Additionally, data centres are evolving to meet the energy demands of AI, which requires significant power for operations, making investments in energy-efficient designs and sustainable energy sources essential. This scenario presents a lucrative opportunity for investors as data centres are not only a critical part of the digital infrastructure but also offer stable, long-term growth potential.

Where can potential investment opportunities be found?

Investors can engage in the data centre market through various avenues. One primary method is investing directly in companies that own and operate data centres, such as Digital Realty Trust and Equinix, both of which offer attractive dividend yields and have a strong presence globally. Another option is through Real Estate Investment Trusts (like American Tower or Crown Castle), that focus on data centre properties, wireless and broadcast communications infrastructure, providing a way to invest in this sector with potentially lower risk and steady income streams. Additionally, investors can consider technology giants like Amazon and Microsoft, which have substantial data centre operations integral to their cloud services. Exchange-Traded Funds (ETFs) specializing in technology and infrastructure also offer diversified exposure to data centre investments. For those looking for high growth potential, venture capital and private equity investments in emerging data centre technologies and startups present an avenue.

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

Potential winners

Crown Castle (CCI.US) is the largest provider of shared communications infrastructure in the U.S., managing over 40,000 cell towers, 115,000 on-air or under-contract small cell nodes, and 85,000 miles of fiber. As a REIT, Crown Castle focuses on supporting wireless carriers and emerging technologies like 5G and smart cities. With a disciplined capital allocation strategy and a commitment to sustainable growth, Crown Castle is well-positioned to benefit from the increasing demand for robust digital infrastructure, making it a strong investment in the communications sector.

Source: xStation 5

American Tower Corporation (AMT.US) is a leading company in terms of leasing communications sites, data centers and antenna systems. It operates in over 25 countries with over 180 000 assets worldwide, apart from U.S. and Canada, where it has over 42 000. The company cooperates mainly with huge clients on telecommunications market such as T-Mobile, AT&T or Verizon. Therefore, its leases are usually non-cancellable and quite stable. The leases have embedded annual escalators, which in the case of the U.S. Market are typically fixed at an average of approximately 3% and on other international markets are based on local inflation indices. Such rules make it most profitable for American Tower Corporation when inflation rate in U.S. is under control and easy to predict. The company has stable EBITDA margin at around 63% and still improves its operating margin. 

Source: xStation 5

Another stock operating in data centers segment is Digital Realty Trust (DLR.US). Company provides full spectrum of data center, colocation and interconnection solutions. Its main product, PlatformDIGITALR, provides solutions for scaling digital businesses and enables them to manage challenges associated with collecting data. The company recently updated its financial guidance for 2024, estimating revenue growth only around 1%, which would be the slowest increase in revenue in the past 4 years. It increased its Rental Rates on Revewals Leases outlook to 5-7% from 4-6%, which still means probably worse performance than in 2023. The company has reported a record backlog of 541 Million $, however only 51% of it will be commenced in 2024, therefore for more significant increases in company results investors might have to wait for upcoming years. Digital Realty Trust compared to its peers doesn’t show huge discount, when it comes to relative multiples such as forward P/E or forward P/FFO.

Source: xStation 5
Share:
Back
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 25 October 2024
test_cookie cc 24 October 2024
adobe_unique_id cc 24 October 2025
__hssc cc 24 October 2024
SESSID cc 2 March 2024
__cf_bm cc 24 October 2024
intercom-id-iojaybix cc 21 July 2025
intercom-session-iojaybix cc 31 October 2024
xtbCookiesSettings cc 24 October 2025
TS5b68a4e1027
countryIsoCode
xtbLanguageSettings cc 24 October 2025
userPreviousBranchSymbol cc 24 October 2025
TS5b68a4e1027
intercom-device-id-iojaybix cc 21 July 2025
__cf_bm cc 24 October 2024
__cfruid
__cfruid
__cf_bm cc 24 October 2024
__cf_bm cc 24 October 2024
_cfuvid
adobe_unique_id cc 24 October 2025
_cfuvid
TS5b68a4e1027
xtbCookiesSettings cc 24 October 2025
SERVERID
TS5b68a4e1027
__hssc cc 24 October 2024
test_cookie cc 1 March 2024
__cf_bm cc 24 October 2024
_cfuvid
_cfuvid
__cf_bm cc 24 October 2024
__cf_bm cc 24 October 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 22 January 2025
_ga_CBPL72L2EC cc 24 October 2026
_ga cc 24 October 2026
__hstc cc 22 April 2025
__hssrc
_vwo_uuid_v2 cc 25 October 2025
_ga_TC79BEJ20L cc 24 October 2026
_vwo_uuid cc 16 October 2025
_vwo_ds cc 15 November 2024
_vwo_sn cc 16 October 2024
_vis_opt_s cc 24 January 2025
_vis_opt_test_cookie
af_id cc 23 February 2025
afUserId cc 25 January 2026
af_id cc 24 January 2026
AF_SYNC cc 1 February 2024
_ga cc 24 October 2026
_gid cc 25 October 2024
_ga_CBPL72L2EC cc 24 October 2026
__hstc cc 22 April 2025
__hssrc
_ga_TC79BEJ20L cc 24 October 2026
_gcl_au cc 22 January 2025
AnalyticsSyncHistory cc 31 March 2024

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 18 November 2025
_omappvp cc 6 October 2035
_omappvs cc 24 October 2024
_uetsid cc 25 October 2024
_uetvid cc 18 November 2025
_fbp cc 22 January 2025
fr cc 7 December 2022
_ttp cc 22 January 2025
_tt_enable_cookie cc 22 January 2025
_ttp cc 22 January 2025
hubspotutk cc 22 April 2025
IDE cc 10 November 2025
YSC
VISITOR_INFO1_LIVE cc 22 April 2025
hubspotutk cc 22 April 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 25 October 2024
_uetvid cc 18 November 2025
_ttp cc 22 January 2025
MUID cc 18 November 2025
_fbp cc 22 January 2025
_tt_enable_cookie cc 22 January 2025
_ttp cc 22 January 2025
li_sugr cc 30 May 2024
guest_id_marketing cc 24 October 2026
guest_id_ads cc 24 October 2026
guest_id cc 24 October 2026
muc_ads cc 24 October 2026
VISITOR_PRIVACY_METADATA cc 22 April 2025
MSPTC cc 18 November 2025
IDE cc 18 November 2025
MSPTC cc 18 November 2025

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
bcookie cc 24 October 2025
lidc cc 25 October 2024
UserMatchHistory cc 31 March 2024
bscookie cc 1 March 2025
li_gc cc 22 April 2025
bcookie cc 24 October 2025
li_gc cc 22 April 2025
lidc cc 25 October 2024
personalization_id cc 24 October 2026

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language