AI data center protests may boost existing data center REITs by limiting new supply and raising demand.

Protests against AI data centers are growing due to their large land use, high electricity and water consumption, and noise, with 69% opposing new centers locally. This resistance could benefit existing data center real estate investment trusts (REITs) like Equinix, Digital Realty, and Iron Mountain by limiting new construction, thus increasing the value and pricing power of current facilities. These REITs have shown strong financial performance and raised guidance recently. While new development may slow due to regulations, established REITs with large land banks and local government relationships are well-positioned to capitalize on rising demand for AI infrastructure.