Data Center REITs Leverage AI Growth to Drive Global Infrastructure Dominance

Major data center REITs like Equinix and Digital Realty are entering a high-growth phase in 2026, fueled by a $1.4 trillion demand for AI infrastructure. These firms are pivoting from cloud services to AI compute hubs, focusing on "inference" to support real-time applications. Despite power scarcity challenges, Equinix plans to double its capacity by 2029, offering investors a stable way to gain exposure to the AI boom.

By: AXL Media

Published: Feb 16, 2026, 10:25 AM EST

Source: Information for this report was sourced from Bisnow

The Strategic Shift from Training to Inference

The current evolution of the data center market is characterized by a strategic pivot from AI training to AI inference, which favors the highly distributed networks maintained by firms like Equinix. Industry analysts anticipate that the inference stage starting in 2026 will create a significant uptick in demand for retail colocation facilities located near population centers. This shift allows established REITs to capitalize on their existing interconnectivity solutions which are critical for low latency AI applications.

Digital Realty maintains more than 300 facilities across 50 cities. This massive footprint provides the necessary infrastructure for large scale enterprise clients to scale AI workloads without building proprietary centers. The company's ability to grow its top line for 20 consecutive years underscores the resilience of the REIT model in adapting to fundamental technological shifts like the AI boom.

Aggressive Capital Deployment and Capacity Expansion

To meet anticipated demand, the industry’s largest players are pursuing aggressive expansion plans through 2029. Equinix has approximately 3 gigawatts of capacity currently under development and intends to double its total data center capacity over the next three years. In 2026, the company has 20 major projects scheduled to open in strategic global hubs including Mumbai and Istanbul.

This expansion is being funded by strong investor sentiment and rising adjusted funds from operations. Analysts have recently raised earnings per share estimates for data center leaders, reflecting confidence in their ability to translate surging demand into concrete bottom line growth. While some firms temporarily suspended dividend growth to reinvest capital into AI specific architecture, their revenue and earnings projections remain bullish.