The proliferation of artificial intelligence (AI) has resulted in abundant market opportunities.
From NVIDIA (NASDAQ: NVDA) to Micron Technology (NASDAQ: MU), AI stocks have shown their ability to not just outperform the market, but to do so by leaps and bounds.
While pure-play AI stocks’ performances and record Magnificent Seven CapEx allocations have provided a glimpse into this megatrend, one remarkable feat demonstrates just how impactful AI growth has become.
The AI-driven acceleration of data center construction has resulted in spending that now surpasses the total spending on office building construction. This presents a unique opportunity tailored for income investors who are looking for yield and AI growth exposure—something that each of the following three real estate investment trusts (REITs) provides.
Data Center Spending Surges as Office Construction Lags
Alongside AI and cloud computing demand, data center construction reached a record annualized rate of $45 billion in December 2025. For the first time ever, that figure exceeded private office construction, which fell to $44 billion.
While that landmark accomplishment was years in the making, demand for data centers is unlikely to abate. Industry consultancy firm Grand View Research forecasts the global data center market—estimated at $383.82 billion in 2025—to reach $902.19 billion by 2033, implying a compound annual growth rate (CAGR) of 11.3% from 2026 to 2033.
The North America data center segment alone, which accounts for more than 38% of the global total addressable market, is projected to grow at a CAGR of 10.5% during the forecast period. By comparison, the office building construction market is expected to undergo a CAGR of 8.5% through 2033, suggesting that this disparity is just getting started.
A Mountain of Potential From a Legacy Data Manager
Founded in 1951, Iron Mountain (NYSE: IRM) converted to a REIT in 2014.
As it expanded from legacy records management company to colocation data center operator, the 75-year-old company has amassed 240,000 customers spanning 61 countries, including 95% of Fortune 1000 members.
The REIT continues to help organizations unlock value through services, including information management, digital transformation, information security, and data center/asset lifecycle management needs.
While REITs are known for generating yield, Iron Mountain is the quintessential example of how a data center REIT can simultaneously offer strong dividends and growth. Over the past month, shares have gained nearly 28%, contributing to a year-to-date (YTD) gain of more than 60%.
Meanwhile, the trust’s dividend currently yields 2.67%, or $3.46 per share annually, with an annualized five-year growth rate of 5.45%.
Big Tech’s Big Data Center Partner
Digital Realty Trust (NYSE: DLR) is a REIT that owns, acquires, and operates carrier-neutral data centers and provides colocation and interconnection services.
Its focus is on large-scale, mission-critical facilities that support the physical infrastructure needs of cloud providers, enterprises, network operators, and content companies.
That has resulted in partnerships with exceptionally large tech companies, including NVIDIA, Oracle (NYSE: ORCL), Dell Technologies (NYSE: DELL), and Advanced Micro Devices (NASDAQ: AMD), as Digital Realty has become synonymous with wholesale data center space, turnkey facilities, and retail colocation suites.
The REIT hosts NVIDIA’s AI Factory Research Center in Northern Virginia and has partnered with Advanced Micro Devices on the Digital Realty Data Center Innovation Lab—a so-called AI sandbox, “hands-on facility where partners, enterprises, and customers can test and prove AI deployments in a real colocation environment," according to the company.
Shares of DLR have seen a YTD gain of more than 29%, and its dividend currently yields 2.5%, or $4.88 per share annually.
The World’s Largest Data Center REIT
With a market cap of nearly $108 billion, Equinix (NASDAQ: EQIX) is the world’s largest data center REIT.
After converting to a trust on Jan. 1, 2015, it provides digital infrastructure and interconnection services, while specializing in carrier-neutral data centers and colocation.
Like Digital Realty, Equinix operates a platform that enables enterprises, cloud and network service providers, and content companies to colocate IT infrastructure, interconnect directly with partners and providers, and access cloud on-ramps and network services in a secure, low-latency environment.
Today, the REIT boasts more than 280 data center locations on six continents. Its data center operations serve customers that range from large multinational enterprises to cloud providers and telecommunications operators. Equinix emphasizes interconnection density and ecosystem partnerships as differentiators in enabling digital transformation and low-latency connectivity.
Shares of EQIX are up more than 43% this year, and the REIT’s dividend currently yields 1.92%, or $20.64 per share annually. That yield may be lower than the other two REITs on this list, but Equinix has increased its distribution for 10 years consecutively, while its annualized five-year growth rate of 12.01% surpasses both Iron Mountain and Digital Realty.
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The article "3 REITs to Watch as AI Data Center Spending Surpasses Office Construction" first appeared on MarketBeat.
