WS #16335
Data center REITs Digital Realty (DLR) and Equinix (EQIX) are experiencing unusual volatility, with market observers noting that these assets do not typically move with the same magnitude as broader tech stocks. This movement is likely driven by the broader tech selloff and concerns about the sustainability of AI capex spending. The volatility highlights the interconnectedness of the tech infrastructure sector with the broader growth narrative and the potential for a re-rating of these assets if credit conditions tighten further.
Data Center REIT Volatility
Data center REITs Digital Realty (DLR) and Equinix (EQIX) are experiencing unusual volatility, with market observers noting that these assets do not typically move with the same magnitude as broader tech stocks. This movement is likely driven by the broader tech selloff and concerns about the sustainability of AI capex spending. The volatility highlights the interconnectedness of the tech infrastructure sector with the broader growth narrative and the potential for a re-rating of these assets if credit conditions tighten further.