3 Data Center REIT Stocks With Long Contracts As Bond Yields Rise

Rising long-term bond yields are reshaping how markets price future cash flows, and AI-linked data center and infrastructure REITs now sit directly in the crossfire of higher discount rates and expectations for stronger productivity. Some investors are retreating from rate-sensitive assets, while others are looking for resilient income streams and clearer exposure to long-term digital demand. This article examines three stocks from our AI-linked, long-contract screener that appear positively exposed to this latest shift.

The three REITs below are just a sample from this theme. The full screen surfaced 20 more listed real estate and infrastructure companies with equally compelling AI-linked narratives and long-contract profiles that are not covered here. To go further, head straight into the AI-Linked Data Center and Infrastructure REITs with Long-Term Contracts screener to analyze, filter, and identify the highest-conviction ideas for your own watchlist.

Equinix (EQIX)

Overview: Equinix runs a global network of interconnected data centers that host and link cloud, AI, and enterprise workloads under recurring contracts.

Operations: Equinix generates about US$9.9b from designing, building out, and operating its IBX data centers, spread across the US, EMEA, Asia-Pacific, and other Americas.

Market Cap: US$99.5b

For this screener, Equinix matters because it is where long-term digital traffic, including AI workloads, actually lives. At the same time, higher bond yields are pushing investors to focus on contracted cash flows tied to that infrastructure.

"Control of roughly 3 GW of designed power, with about 600 MW under some form of development and an expected 1 GW under production by early next year, positions Equinix to convert power constrained market demand into incremental rental revenue and cash flow over time."

What happens to Equinix’s margins if one unseen pressure around the cost of building and funding that power tightens further?

If that pressure is what you are weighing, read the full narrative for Equinix to see how Equinix’s scale, contracts, and capital plans could reshape the margin story.

DigiCo Infrastructure REIT (ASX:DGT)

Overview: DigiCo Infrastructure REIT runs a global portfolio of data centres across stabilized, value add and development projects linked to AI driven demand.

Operations: DigiCo Infrastructure REIT generates A$216.9 million from data centre ownership and development, mainly in Australia at A$158.1 million and the United States at A$47.7 million.

Market Cap: A$1.4b

DigiCo Infrastructure REIT gives you exposure to the physical side of AI and cloud growth. Long contracts and high power capacity are meant to anchor returns even as interest rates reset higher.

"Although secured power allocations such as the 120 MVA at Sydney1 provide a platform for future capacity, any delays or cost pressures in power upgrade works and cooling solutions for higher rack densities could increase project costs and compress the targeted 15% yield on cost, which may weigh on earnings and returns on invested capital."

What really shapes DigiCo Infrastructure REIT’s upside is whether one crucial assumption about future AI data centre economics holds under stress.

If that assumption is what you are testing, read the full narrative for DigiCo Infrastructure REIT to see how DigiCo Infrastructure REIT’s AI demand, power costs, and yields could be decoupling.

Digital Realty Trust (DLR)

Overview: Digital Realty Trust operates a global network of data centers that host AI and cloud workloads under colocation and interconnection arrangements.

Operations: Digital Realty Trust generates about US$6.8b from commercial REIT activities, with roughly US$3.6b from the United States and US$3.2b from other regions.

Market Cap: US$67.5b

Digital Realty Trust is where the screener theme really comes into focus, because its data centers and interconnection hubs are built specifically for long-term AI and cloud usage rather than just general-purpose real estate exposure.

"Digital Realty's record signed but not yet commenced lease backlog of about US$1.9b, plus a further US$410m of hyperscale leases signed in July, points to a large pipeline of contracted revenue that has not yet flowed through earnings and could support future core FFO per share."

What matters next is how one pressure around funding and building that future capacity shapes the eventual earnings and cash flow outcome.

That funding squeeze is the real hinge, and the full narrative for Digital Realty Trust shows how Digital Realty Trust’s backlog, capital plan, and AI build out could be accelerating the long term story.

Seeking Fresh Alternatives Before They Fly

Markets move fast and the cleanest breakout stories rarely stay under the radar for long. Spot momentum while it matters, before entry points start dropping, and get in early.

• Chase early-stage turnarounds with stronger balance sheets by scanning the list of solid balance sheet and fundamentals (24 results) that filters for financial resilience before the wider market catches on.
• Ride potential cash flow momentum by scanning 8 dividend fortresses that focus on higher yielding businesses where payouts are central to the investment case.
• Target real-world picks in automation, logistics, and smart manufacturing using 92 robotics and automation stocks that highlight companies tied directly to the rise of intelligent machines.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com