Equinix, Digital Realty REITs In Focus As AI Frenzy Drives $50 Billion Data Center Construction Surge

Driven by the relentless artificial intelligence (AI) boom, U.S. data center construction has eclipsed office building investment, with stocks like Equinix Inc. (NASDAQ:EQIX) and Digital Realty Trust Inc. (NYSE:DLR) in focus.

A Historic Real Estate Reversal

According to Augur Infinity market data highlighted by The Kobeissi Letter, data center construction spending “jumped +34%” year-over-year in March to reach a “record $50 billion” annualized rate.

This represents a massive 437% increase since the beginning of 2021, when the annualized rate stood at a mere $9 billion. Conversely, traditional commercial real estate is facing a steep decline.

Office building construction spending fell 9% year-over-year in March, down to $46 billion, officially hitting the “lowest since 2015.” This marks a historic real estate shift: data center spending now outright exceeds office building construction by $4 billion.

Office construction spending exceeded data center investments by $65 billion as recently as 2020.

BREAKING: US data center construction spending jumped +34% YoY in March, to a record $50 billion annualized rate.

Spending on data centers is up +437% since the beginning of 2021, when the annualized rate stood at ~$9 billion.

This is also up +688% since the start of 2018, when… pic.twitter.com/O55A7mnHYy

— The Kobeissi Letter (@KobeissiLetter) May 14, 2026

Top REITs Capitalize On Digital Demand

This shift is putting major data center real estate investment trusts (REITs), specifically industry leaders like Equinix Inc. and Digital Realty Trust, in the spotlight. These companies develop, acquire, and operate the highly specialized commercial properties equipped with the uninterruptible power supplies and advanced HVAC systems necessary to house and regulate big data servers.

As the expansion of AI infrastructure reshapes the computing market and workloads shift increasingly toward complex AI training and inference, the demand for secure, scalable physical spaces is skyrocketing.

While the sector faces risks from high operating expenses and intensifying tech competition, data centers remain an essential, recession-proof component of the modern digital economy.

Here’s a list of a few data center and other REIT-linked ETFs for investors to consider amid the boom.

Data Center And Other REIT ETFs	YTD Performance	6-Month Performance	One Year Performance
Global X Data Center REITs & Digital Infrastructure ETF (NASDAQ:VPN)	6.07%	23.61%	23.03%
Pacer Data & Infrastructure Real Estate ETF (NYSE:SRVR)	20.47%	15.495	12.84%
iShares Cohen & Steers REIT ETF (BATS:ICF)	12.06%	11.50%	11.19%
Schwab US REIT ETF (NYSE:SCHH)	12.11%	10.79%	11.58%
iShares Core US REIT ETF (NYSE:USRT)	12.94%	11.14%	14.74%
SPDR Dow Jones REIT ETF (NYSE:RWR)	11.30%	10.15%	13.88%

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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