Driven by the relentless artificial intelligence (AI) boom, U.S. data center construction has eclipsed office building investment, with stocks like Equinix Inc. (NASDAQ:EQIX) and Digital Realty Trust Inc. (NYSE:DLR) in focus.



<h2>A Historic Real Estate Reversal</h2>



According to Augur Infinity market data highlighted by The Kobeissi Letter, data center construction spending “jumped +34%” year-over-year in March to reach a “record $50 billion” annualized rate.



This represents a massive 437% increase since the beginning of 2021, when the annualized rate stood at a mere $9 billion. Conversely, traditional commercial real estate is facing a steep decline.



Office building construction spending fell 9% year-over-year in March, down to $46 billion, officially hitting the “lowest since 2015.” This marks a historic real estate shift: data center spending now outright exceeds office building construction by $4 billion.



Office construction spending exceeded data center investments by $65 billion as recently as 2020. 



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<blockquote>BREAKING: US data center construction spending jumped +34% YoY in March, to a record $50 billion annualized rate. Spending on data centers is up +437% since the beginning of 2021, when the annualized rate stood at ~$9 billion. This is also up +688% since the start of 2018, when… pic.twitter.com/O55A7mnHYy— The Kobeissi Letter (@KobeissiLetter) May 14, 2026</blockquote>
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Read Also:

Berkshire's Cash Pile Might Go To Data Centers, But On Its Own Terms




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<h2>Top REITs Capitalize On Digital Demand</h2>



This shift is putting major data center real estate investment trusts (REITs), specifically industry leaders like Equinix Inc. and Digital Realty Trust, in the spotlight. These companies develop, acquire, and operate the highly specialized commercial properties equipped with the uninterruptible power supplies and advanced HVAC systems necessary to house and regulate big data servers.



As the expansion of AI infrastructure reshapes the computing market and workloads shift increasingly toward complex AI training and inference, the demand for secure, scalable physical spaces is skyrocketing.



While the sector faces risks from high operating expenses and intensifying tech competition, data centers remain an essential, recession-proof component of the modern digital economy.



Here’s a list of a few data center and other REIT-linked ETFs for investors to consider amid the boom.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Data Center And Other REIT ETFs</td><td>YTD Performance</td><td>6-Month Performance</td><td>One Year Performance</td></tr><tr><td>Global X Data Center REITs &amp; Digital Infrastructure ETF (NASDAQ:VPN)</td><td>6.07%</td><td>23.61%</td><td>23.03%</td></tr><tr><td>Pacer Data &amp; Infrastructure Real Estate ETF (NYSE:SRVR)</td><td>20.47%</td><td>15.495</td><td>12.84%</td></tr><tr><td>iShares Cohen &amp; Steers REIT ETF (BATS:ICF)</td><td>12.06%</td><td>11.50%</td><td>11.19%</td></tr><tr><td>Schwab US REIT ETF (NYSE:SCHH)</td><td>12.11%</td><td>10.79%</td><td>11.58%</td></tr><tr><td>iShares Core US REIT ETF (NYSE:USRT)</td><td>12.94%</td><td>11.14%</td><td>14.74%</td></tr><tr><td>SPDR Dow Jones REIT ETF (NYSE:RWR)</td><td>11.30%</td><td>10.15%</td><td>13.88%</td></tr></tbody></table></figure>



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Read Also:

Elizabeth Warren Targets Amazon, Google, Microsoft And Meta After Warning That AI Data Centers 'Use As Much Electricity As 100,000 Households'




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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image via Shutterstock

EQIX

SRVR

IDGT

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Driven by the AI boom, U.S. data center construction spending has surged to a record $50 billion, surpassing office building investments. This marks a 34% year-over-year increase and a 437% rise since early 2021. Major REITs like Equinix and Digital Realty are capitalizing on this trend, as demand for specialized data center properties grows. While traditional commercial real estate faces declines, data centers are becoming essential in the digital economy, despite challenges from high operating costs and competition.

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Digital Realty Trust

Equinix

Pacer Data & Infrastructure Real Estate ETF

iShares US Real Estate ETF

iShares US Digital Infrastructure and Real Estate ETF

Global X Data Center & Dgtl Infrs ETF

Vanguard Real Estate ETF

iShares Global REIT

SPDR Dow Jones REIT ETF

Schw Us Reit

Berkshire Hathaway

Berkshire Hathaway B

iShares Cohen & Steers REIT

iShares Core US Reit

Amazon

Alphabet

Alphabet - C

Microsoft

Meta Platforms

Shutterstock

Equinix, Digital Realty REITs In Focus As AI Frenzy Drives $50 Billion Data Center Construction Surge