Our Picks in the Data Center Industry
The firms that hold network-dense properties are best positioned.
Matthew Dolgin: We recently took a deep look at the data center industry, and it reinforced our views that the firms holding network-dense properties are best positioned.
Several secular trends are driving an increase in demand for data centers that is likely to continue. Among the growth drivers are increased use of the cloud, artificial intelligence, and the "Internet of Things." However, we see many data centers as undifferentiated, so with an abundance of capital chasing the growth, only data center providers with unique portfolios are likely to see attractive returns.
Matthew Dolgin does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.