π Data Center Dollars β May 10, 2025 Financial Update
π Latest Financial News in Data Center-Related Companies
π Surging Investments and Market Growth
The global data center construction market is experiencing rapid expansion, driven by soaring demand for cloud computing, artificial intelligence (AI), and digital infrastructure. The market is valued at $91.86 billion in 2024 and projected to reach $214.16 billion by 2030, reflecting a 15.1% CAGR.
North America leads this growth, with strong momentum in Asia-Pacific, Latin America, and the Middle East & Africa. Major investors and operators include AWS, Microsoft, Google, Equinix, and Digital Realty Trust.
π Major Corporate Developments
NTT Data: NTT is taking NTT Data private in a $16.4 billion deal, signaling strong confidence in the continued growth and value of digital infrastructure assets.
Core Scientific: Despite crypto revenue declines, the firm is targeting 300MW of colocation expansion at current sites and 400MW at new locations.
Related Companies: Seeking to raise $8 billion for a major AI data center buildout, showcasing robust capital flows into the sector.
π§ Big Tech & AI-Driven Demand
Microsoft & Amazon: Pausing some Ohio data center projects amid power and resource constraintsβseen as strategic recalibrations, not demand weakness. Total expected CapEx among Microsoft, Amazon, and Google in 2025: $300B+.
Alphabet (Google): Committed $75 billion to data center infrastructure for 2025, stunning analysts.
Meta Platforms & Nvidia: Both reported strong Q1 earnings, supporting tech market rebound and long-term confidence in AI infrastructure plays.
πΌ Financial Performance and Stock Highlights
Equinix (EQIX)
Market Cap: ~$78B
2024 Revenue Estimate: $8.7B
2025 Revenue Estimate: $9.4B
Notable: Global expansion, 2% dividend
Digital Realty Trust (DLR)
Market Cap: ~$49B
2024 Revenue Estimate: $5.6B
2025 Revenue Estimate: $6B
Notable: Buy rating, 3.3% yield
SBA Communications (SBAC)
Market Cap: ~$23B
Notable: 22% annual EPS growth
NTT Data
Deal: Going private in a $16.4B transaction
π Industry Trends and Challenges
AI Power Demand: AI growth is pushing unprecedented energy needs, with operators investing in both renewables and traditional generation to meet demand.
Strategic Project Pauses: Resource constraints (power, land, fiber) are prompting temporary delays, not decline. Growth outlook remains strong.
M&A Activity: Private equity remains aggressive despite interest rate pressure; capital continues flowing into infrastructure assets.
π° Latest M&A in Data Center Industry
2024β2025 has seen over $70B in M&A activity, reshaping the landscape:
π’ Major Recent Deals
Blackstone & Canada Pension Plan Acquire AirTrunk
Value: $16.1B (Dec 2024)
Largest-ever data center acquisition, expanding in APAC
SoftBank to Acquire Ampere Computing
Value: $6.5B (Expected Q4 2025)
Strengthens SoftBankβs AI + chip capabilities
π Stock Updates for Data Center-Related Companies (as of May 9, 2025)
Equinix (EQIX)
YTD Performance: -9.45%
Market Cap: $90.7B
Outlook: Outperform
Digital Realty Trust (DLR)
YTD Performance: -14.31%
Market Cap: $58.4B
Outlook: Outperform
American Tower (AMT)
Price: $219.47
YTD Performance: +12.69%
Market Cap: $102.7B
Iron Mountain (IRM)
YTD Performance: -17.46%
Vertiv Holdings (VRT)
YTD Performance: -27.88%
Market Cap: $37.8B
Outlook: Moderate Buy
Nvidia (NVDA)
Price: $116.64
YTD Performance: -13.81%
Market Cap: $2.84T
Dell Technologies (DELL)
Outlook: Moderate Buy
Nebius Group (NBIS)
Outlook: Buy
Schneider Electric (SBGSF)
YTD Performance: +0.43%
Constellation Energy (CEG)
YTD Performance: -3.74%
Duke Energy (DUK)
YTD Performance: +8.26%
π Notable Stock Movements & Analyst Notes
Vertiv (VRT): Near 50-day low; analysts project 65%+ upside (target: $135.33). Seen as a key AI infrastructure winner.
Equinix (EQIX): Despite -9.45% YTD, remains a global leader with 2% dividend yield. Rated "Outperform."
Digital Realty (DLR): Down -14.31% but operates 300+ data centers globally. Rated "Outperform."
American Tower (AMT): Up +12.69% YTD, benefiting from data center asset growth.
Nvidia (NVDA): Down -13.81% but remains essential to AI hardware infrastructure.
Dell (DELL): Analysts see 47% upside and an attractive P/E of 17.
Nebius (NBIS): Rated "Buy" with 122% projected upside due to its AI-cloud focus.
βοΈ Sector Trends
Short-term tech stock pullbacks creating entry points.
Utilities and suppliers (Duke, Constellation, Schneider, Nvidia) gaining traction due to growing hyperscale demands.
β
Summary
Despite some short-term volatility, the long-term investment case for data centers is strong. With AI and cloud growth accelerating, operators like Equinix, Digital Realty, Vertiv, and American Tower are in prime position to capitalize. Key suppliers like Nvidia and Dell round out the value chain. Analyst sentiment remains bullish with significant upside potential across many names.
Stay tuned for more in the next issue of Data Center Dollars!