The Top 10 Data Centre Real Estate Companies (2024)

FAQs

Which data center REIT is best? ›

Data centres are special-purpose properties with highly specific building requirements, and the location criteria and market drivers also deviate significantly from those of established real estate such as offices, retail premises and logistics facilities.

Data center companies can also be referred to as colocation companies, and these companies build and operate data centers, providing a highly secure space with redundant power, cooling and network infrastructure for those who find it more affordable and/or more reliable than operating their own data centers.

Data Centers as an Investment Opportunity

A direct acquisition or development investment into a data center asset let to a hyperscaler generates high and stable rental income over a considerable term.

Some of the most reliable colocation data center companies are QTS Realty Trust Inc (NYSE: QTS), Digital Realty (NYSE: DLR), and Equinix (NASDAQ: EQIX).

Apple, Saudi Aramco, and Microsoft top the biggest companies in the world.

Data center needs vary depending on their structure, physical limitations, density requirements and more. Here are four common data center types including onsite, colocation facilities, hyperscale, and edge data centers, as well as their use cases and industry trends.

How do data centers make money? Data center operators make money by leasing or licensing power and space.

How is data used in real estate? ›

Real estate professionals can use data to more accurately determine the age and condition of a building and get reliable information on the types of renovations and redesigns previously made to it. This reduces the unknowns about the property and its potential, minimizing risk factors for investors and buyers.

Data-driven decision-making leads to better performance

It's clear that without data analytics, real estate management companies would struggle to manage building operations efficiently and improve property value.

Tier 4: A Tier 4 data center is built to be completely fault tolerant and has redundancy for every component. It has an expected uptime of 99.995% (26.3 minutes of downtime annually).

Public cloud-based services are becoming more predominant as data centers transition from private to public cloud infrastructure. What's fueling this transition? Enterprises want to leverage the scale and expertise of cloud service providers to reduce their infrastructure services, costs and dedicated resources.

A Look Into the Future of Data Centers

As information and data multiply, in-house, local data storage centers will struggle to stay afloat with increased storage requirements and capabilities for data management. The expansion of remote work amidst COVID-19 has led many companies to adopt a hybrid cloud approach.

Future-proofing data centres

The digital age has increased the demand for data centres that meet stringent security, energy efficiency, business continuity and productivity optimisation needs. In addition, data centres are also required to accommodate unpredictable future loads, and long-term sustainability.

Pros of REITs

They offer a low-cost way to invest in the real estate market. You can invest in a fund with as little as $500—a much lower entry point than direct real estate investing. Another benefit is that REITs offer enticing total return potential.

REITs Are The Easiest, And Usually The Best, Way To Invest In Real Estate. While commercial real estate is where many of the world's millionaires and billionaires come from, you don't have to be a professional real estate developer to get rich from this sector.

But who is the top service provider? According to various sources, the top four by market share are Verizon, AT&T, Sprint, and T-Mobile in that order. However, when data is involved, there is always room for questioning. And that is exactly what we did.

Who are the biggest players in big data? ›

Use 'bigger than' and rewrite the sentence. - English.

Chicago is the headquarters of Lakeside Technology Center that covers an area of 1.1 million square feet. The facility belongs to the Digital Realty Trust and serves large tech companies like Facebook and IBM. The data center uses 8.5 million gallons of coolant annually and has 53 generators.

Thirty-four miles from Washington D.C. lies Ashburn, a city in Virginia's Loudon County. It may sound like just another regular city, but it's impressively known as the Data Center Capital of the World.

Big data is a collection of data from many different sources and is often describe by five characteristics: volume, value, variety, velocity, and veracity.

Big data analytics helps organizations harness their data and use it to identify new opportunities. That, in turn, leads to smarter business moves, more efficient operations, higher profits and happier customers. Businesses that use big data with advanced analytics gain value in many ways, such as: Reducing cost.

Embassy REIT has the highest dividend yield & highest occupancy rate. Mindspace REIT offers the highest tax-free distribution (90%) compared to others.

How is Equinix a REIT? ›

Equinix (NASDAQ:EQIX) is an equity REIT that owns interests in 248 data centers in 70 cities around the world for the purposes of providing colocation and integration services, which make up to 92% of recurring revenues for the company.

For example, earning 11% annual total returns on a $300/month contribution would allow an investor to surpass $1 million after just 33 years. Setting aside $100 a month for each of these three real estate investment trusts (REITs) could make you a millionaire in the span of just over three decades.

Most REITs pay above-average dividends backed by steady rental income. However, some REIT dividends are safer than others. Three of the safest in the sector are those paid by Prologis (PLD 0.60%), Camden Properties Trust (CPT 1.44%), and Realty Income (O 0.28%).

REITs make their money through the mortgages underlying real estate development or on rental incomes once the property is developed. REITs provide shareholders with steady income and, if held long-term, growth that reflects the appreciation of the property it owns.

Purchase Money Mortgage/Seller Financing

The first proven way to invest in real estate with no money is through seller financing. When buyers are unable to secure a loan from financial institutions, they may opt to seek real estate financing from the sellers.

The largest difference between REITs and dividend stocks is naturally their sector of focus. As the name suggests, REITs focus largely on the real estate sector. Dividend stocks on the other hand, are not limited to a single sector.

Risks of Publicly Traded REITs

Publicly traded REITs are a safer play than their non-exchange counterparts, but there are still risks.

Steady dividends: Because REITs are required to pay 90% of their annual income as shareholder dividends, they consistently offer some of the highest dividend yields in the stock market. That makes them a favorite among investors looking for a steady stream of income.

How do data center REITs make money? ›

The REIT owns a portfolio of property, earns income, and pays out dividends to its shareholders. Generally, a REIT pays out 90% of its income to shareholders each month. Just like a regular company, investors can buy and sell shares of the REIT.

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