$DLR

UBS estimates 30% of U.S. data-center capacity planned for 2028 may be at risk, impacting AI-related companies like NVIDIA (NVDA). NVIDIA's growth depends on new data centers, with Q2 2027 Data Center revenue at $89.023B, up 117% YoY. Shares fell 21.4% over the past month. Broadcom (AVGO) and others also cited supply constraints. Analysts debate NVIDIA's revenue estimates for 2028, ranging from $506.483B to $778.471B.

BMO Capital Markets highlights data center stocks facing development risks due to election results. DLR, EQIX, and CSQR are noted as well-positioned, with strong pricing trends and low vacancy rates. DLR trades at $180.25, EQIX at $1,014.40, and CSQR at $14.30, all with Outperform ratings.

NextDC, an Australian data centre company, faces two class action lawsuits and a potential takeover after halting a power pole project. The company cut its 2027 revenue forecast by $140 million and reduced its construction budget by up to $1.25 billion. Shares dropped 42% before recovering after Goodman Group and Digital Realty acquired a 10% stake.

Digital Realty Trust's stock fell 4.7% in after-hours trading, closing at $174.50. The drop was notable for a typically stable data center REIT. Investors are evaluating the impact on dividend yields and market sentiment, with no clear catalyst identified.

Texas, expected to host 41% of new U.S. data center capacity by 2028, may extend its pause on new approvals under governor-elect Gina Hinojosa. This could impact neocloud companies like IREN, Core Scientific, and Cipher Digital, as well as data center REITs such as Digital Realty Trust and Equinix, and energy providers like Vistra, GE Vernova, and Vertiv.

Digital Realty (DLR) opened its first Latin American Digital Realty Innovation Lab (DRIL) in São Paulo, Brazil. The lab allows customers to test and optimize AI infrastructure solutions before large-scale deployment. Key features include high-density AI testing, advanced cooling, resilient infrastructure, and flexible connectivity. The company plans to expand DRIL locations to Singapore and Johannesburg by late 2026.

NextDC's board hired bankers to evaluate potential takeover offers after Goodman Group and Digital Realty Trust acquired 7.5% of its shares in a surprise move. The company will consider genuine approaches, according to its board.

BMO Capital notes that Digital Realty (DLR) faces higher development risks due to midterm election results in key states, but its diversified land bank may mitigate this. Equinix (EQIX) and Csquare (CSQR) are seen as less exposed. BMO maintains Outperform ratings on all three.

Goodman Group and Digital Realty plan to acquire a 9.9% stake in NextDC, an ASX-listed data center company, for $730 million. NextDC's shares have declined due to issues with a Melbourne site. Goodman, with a $55 billion market cap, aims to expand into the data center sector.

Barclays analysts maintained Digital Realty (DLR) as Hold with a $197 target and BrightSpire Capital (BRSP) as Sell with a $4 target. DLR's consensus is Strong Buy with a $220.25 target, while BRSP's is Moderate Buy with a $5.54 target. TipRanks also downgraded both stocks.