Digital Realty CEO Says AI Slowdown Would Not Be 'End of the World' for Data Center Real Estate
Comments come after shares of Digital Realty and Equinix, two of the largest data center REITs, fell following warnings about the pace of AI development.
The chief executive of Digital Realty said a potential slowdown in artificial intelligence development would not represent an existential threat to the data center real estate sector, according to CNBC.
The remarks followed a decline in shares of Digital Realty and Equinix, two of the largest publicly traded data center real estate investment trusts (REITs), after warnings emerged regarding the trajectory of AI advancements, CNBC reported.
Data center REITs have drawn significant investor interest in recent years as demand for AI computing infrastructure has grown. Companies such as Digital Realty and Equinix lease server space and infrastructure to technology firms building out AI capabilities.
According to CNBC, the stock slump reflected broader investor concerns about whether AI-related demand for data center capacity could slow, potentially affecting future growth projections for the sector.
The Digital Realty CEO's comments, as cited by CNBC, suggested confidence that the underlying real estate business would remain resilient even if AI development were to decelerate, though specific details of the CEO's remarks were not fully outlined in available reporting.
CNBC did not provide additional specifics from Equinix regarding the stock movement or company outlook in the referenced report.
Sources
- Potential AI slowdown is not ‘end of the world’ for data center real estate, says Digital Realty CEO — CNBC — Top News
EGazette summarizes reporting from multiple sources; follow the links for the originals.
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