3 REITs Getting Paid as Big Tech Builds Out AI

Digital Realty (DLR) is acquiring a 40-acre office campus in Rolling Meadows, Illinois, for $81.5 million. The seller, Brennan Investment Group, bought the property out of foreclosure in 2023 for $27 million. This deal follows Digital Realty's $90 million purchase of the Hawthorne Race Course property in Stickney, Illinois. Both acquisitions highlight the company's expansion in the Chicago area, though local pushback may pose challenges.

Equinix (EQIX) and CPP Investments completed a $4 billion acquisition of atNorth, a Nordic data center operator, with Equinix holding a 34% stake. The deal expands Equinix's exposure to AI and high-performance computing infrastructure and is immediately accretive to its AFFO per share. CPP Investments is the controlling shareholder with a 51% stake.

Equinix, a data center REIT, has gained a role in the AI data center market, partnering with Nvidia to offer AI model hosting. Its stock is up 33% this year, with a market cap of $100B. Equinix focuses on urban locations for inference, a growing segment of AI compute. Revenue rose 16% YoY to $2.63B, but some investors remain skeptical.

Equinix (EQIX) and CPP Investments completed the $4B acquisition of atNorth, a Nordic data center operator. CPP holds 51%, Equinix 34%, and Partners Group 10%. The deal is immediately accretive to Equinix's AFFO per share and supports atNorth's growth in AI and high-performance computing.

CPP Investments and Equinix (EQIX) completed the $4B acquisition of atNorth, a Nordic data center provider. CPP holds 51%, Equinix 34%, and Partners Group 10%. The deal aims to expand atNorth's capacity for AI and cloud services, with backing from global lenders.

Wren House Infrastructure Management is close to acquiring an 80% stake in a European data center joint venture from GIC Pte for approximately €700 million. Equinix Inc. (EQIX), which holds the remaining 20% stake, plans to remain invested. The deal is still under discussion and may not be finalized.