New technology is pushing the boundaries of many different industries. In some cases, it’s creating new industries altogether. To name just a few, there’s cryptocurrency, defi, the metaverse, edge computing, artificial intelligence, IoT, autonomous vehicles and many more. But there’s one thing that all of these industries have in common. They will all rely on data centers in some capacity. As these industries grow, so will the need for data centers. This is just one reason why investors are so interested in finding the best data center stocks to buy.
For a quick refresher, here’s everything you need to know about data centers. Otherwise, let’s jump right into the best opportunities in this space.
Data Center Stocks: Cloud-Based Services
There are a few different ways that you can invest in data center stocks. The first is to invest in companies that offer cloud computing services. Cloud computing is the delivery of different services through the internet. One of the most common services is data storage. In this sense, any cloud computing company is essentially a data center. Here are a few of the biggest providers of cloud computing:
All of these companies give investors exposure to data centers. However, cloud computing is also just a small part of their overall business. This brings us to the second way to invest in data center stocks.
Best Data Center ETFs
If you’re interested in investing in data centers, exchange-traded funds (ETFs) are another good idea. If you’re not familiar, an ETF is a fund that owns many different types of stocks. For example, the SPDR S&P 500 ETF Trust (NYSE: SPY) tracks all of the stocks in the S&P 500. Buying a share in the $SPY is much safer than investing in just one S&P 500 stock.
Investing in a data center ETF gives you exposure to the entire sector. It also eliminates the need to pick a winning stock. When it comes to data center ETFs, there are two of the main options:
- Global X Data Center REITs & Digital Infrastructure ETF (Nasdaq: VPN)
- Pacer Benchmark Data & Infrastructure (NYSE: SRVR)
Each of these will give you exposure to the entire sector.
Finally, there is one more way to invest in data center stocks.
Best Data Center REITs
A real estate investment trust (REIT) is a company that owns income-producing real estate. Data center REITs exclusively own real estate that is used for data centers. They buy the land and then lease it to companies that turn it into a data …….