Top 4 Pure-Play Data Center Stocks in the Market | personal finance

The demand for data centers shows no signs of slowing down. In this clip from “Real Talk” on Motley Fool Livme, recorded on March 25Motley Fool contributor Matt Frankel provides a roundup of data center stocks in the market.

Matt Frankel: Starting from the top we have equinix (NASDAQ: EQIX), which has a market capitalization of $64 billion. One of the largest real estate stocks on the market. They have data centers all over the world, about 240 last time I looked. They are considered the gold standard of data centers. There are other companies that have more, but theirs are considered the backbone of the Internet. Many other data centers are judged by how close they are physically to an Equinix property. So, Equinix is ​​a great company. They continue to expand. We recently learned that they are buying four new data centers in Chile and Peru. They recently bought an African data center operator. By the way, I can’t talk after 12 noon, so I get tongue-tied a lot on these shows. Going down the line, we have digital reality (New York Stock Exchange: DLR), which is, in my opinion, one of the leaders as well. It is significantly smaller than Equinix with a market cap of $39 billion, but is still one of the largest real estate investment trusts on the market. So we have Change (New York Stock Exchange: SWCH), which is a newer company and is not yet a real estate investment trust. I think that’s in the works, but can you talk a little bit about Switch. Switch is a market cap of $7 billion. then you have Cyxter (NASDAQ:CYXT)which recently went public through Starboard SPAC Value (NASDAQ: SVAC). It is one of the only SPAC IPOs I know of that is above its SPAC IPO price. Many of them are not doing so well. It has a market capitalization of $2.2 billion, not a real estate investment trust. Then, last but not least, there is iron mountain (New York Stock Exchange: IRM) stock symbol IRM, not a pure game. Their big core business is record keeping. They have a bunch of, essentially, storage facilities that are designed to store paper records. If your doctor needs to keep paper records of something for 15 years, you can go to an Iron Mountain facility to make sure they are safe and secure. They are slowly getting into the data center space because they realize that paper records are not going to be a thing forever and they are slowly pivoting their business towards that. then you have american tower (New York Stock Exchange: AMT), which is not just a pure game, but they just bought a data center operator; Market capitalization of $109 billion, the first real estate investment trust to cross the $100 billion threshold, and the largest REIT in the world. They are primarily a cell tower operator.

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Matthew Frankel, CFP® is the owner of Cyxtera Technologies, Inc., Digital Realty Trust and Iron Mountain. The Motley Fool owns and recommends American Tower, Cyxtera Technologies, Inc., Digital Realty Trust, Equinix, Iron Mountain, and Switch. The Motley Fool has a disclosure policy.