Data center REITs lead with strong growth; American Tower seen as top buy amid premium valuations elsewhere.

Data center REITs have consistently outperformed due to growth drivers like AI, cloud computing, and digital transformation. While top players DLR, EQIX, and IRM trade at high valuations, investors are advised to wait for price dips before buying. American Tower stands out as the best new entry, offering integrated services at a discount with attractive yield and upside potential. The sector’s long-term growth is supported by capital inflows, development pipelines, and emerging competitive advantages in power and connectivity.