AI Data Centers are Booming and These 3 Stocks Are Cashing In

By Ian Cooper Published Dec 8, 11:55AM EST

Quick Read

According to MIT Technology Review, there are about 3,000 data centers across the U.S.
We also have to consider that AI demand isn’t slowing, which increases the need for data centers. Forecasts now place AI’s value between $1.7 and $3.5 trillion by the early 2030s.
With a yield of about 3%, the Digital Realty Trust is a major data center provider that is heavily invested in AI infrastructure.

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AI Data Centers are Booming and These 3 Stocks Are Cashing In — © 24/7 Wall St.

The artificial intelligence boom will continue to create massive demand for data centers.

Right now, according to MIT Technology Review, there are about 3,000 data centers across the U.S. Plus, according to a report from McKinsey, $5.2 trillion in AI infrastructure investments will be needed by 2030.

McKinsey’s analysis also “suggests that demand for AI-ready data center capacity will rise at an average rate of 33 percent a year between 2023 and 2030 (reflecting a trend that is already underway),” as reported by BOMA International.

We also have to consider that artificial intelligence demand isn’t slowing any time soon, which will only increase the need for data centers.

Forecasts now place AI’s value between $1.7 and $3.5 trillion by the early 2030s. Some of the most aggressive estimates are topping $7 trillion by 2035. And judging by the impressive jump in corporate investment, the market is moving toward the high end of those projections.

In addition, some of the largest tech companies are sending a message that the AI boom is far from over. Just look at recent capex spending.

Google raised its 2025 capex outlook to $91 billion to $93 billion
Microsoft is increasing its spending by 74% to $34.9 billion
Meta nearly doubled capex to $19.37 billion, far above expectations
Amazon projects $125 billion in 2025 capex, with more increases planned for 2026

For investors, these numbers are impossible to ignore. Even better, analysts at UBS expect global AI capex to hit $571 billion in 2026, with a runway to $3 trillion by 2030.

That being said, there are three interesting ways to invest in the data center boom and earn yield along the way. That includes:

Digital Realty Trust

With a yield of about 3%, the Digital Realty Trust (NYSE: DLR | DLR Price Prediction) is a major data center provider that is heavily invested in AI infrastructure.

In its most recent quarter, funds from operations (FFO) of $1.89 beat by nine cents. Revenue of $1.58 billion, up 10.5% year over year, beat by $50 million. DLR also raised guidance for the year, now expecting FFO per share of $7.25 to $7.30, which is above its prior range of $7.10 to $7.20. Total revenue for the year is expected to range from $6.025 billion to $6.075 billion, from its prior outlook for $5.925 billion to $6.025 billion.

After finding support at around $155, DLR now trades at $165. From here, we’d like to see it again challenge prior resistance at about $182.50 a share.

Iron Mountain

With a yield of 4.1%, Iron Mountain (NYSE: IRM) has been actively expanding its data center business to meet the surging demand from artificial intelligence.

In its most recent quarter, its FFO of 93 cents beat by a penny. Revenue of $1.75 billion, up 12.2% year over year, was in line with estimates. It also just raised its dividend to $0.864 per share, payable on January 6 to shareholders of record as of December 15. IRM also noted that “Data center revenue growth in excess of 30% is expected in Q4, and more than 25% growth is anticipated for 2026,” as noted by Seeking Alpha.

After dropping from about $107.50 to a low of $82.50, Iron Mountain appears to have found strong support. From its last traded price of $84.14, we’d like to see IRM run back to $95.

Pacer Benchmark Data & Infrastructure Real Estate ETF

With an expense ratio of 0.49%, the Pacer Benchmark Data & Infrastructure Real Estate ETF (NYSEARCA: SRVR) offers exposure to companies that generate a significant amount of their revenue from real estate operations in the data and infrastructure sector. It also has a 30-day yield of 2.75%.

Some of its top holdings include Digital Realty Trust, Equinix, American Tower Corp., Crown Castle, and Iron Mountain, to name just a few. It also just paid a dividend of just over 12 cents per share on September 10. Before that, it paid out a dividend of just over 12 cents on June 11. Its next payout should be paid on January 5, 2026, to shareholders of record as of December 30.

After dropping from about $32 to $28.50, the SRVR ETF caught strong support and is just starting to pivot higher. Last trading at $29.50, we’d like to see it challenge $32 shortly.