Data Center Construction Now Outpaces Office Building Spending
Data center construction spending reached $45 billion at an annualized rate in December 2025, exceeding office building construction for the first time. That month, private office construction fell to $44 billion. The shift reflects surging demand for AI infrastructure and cloud computing capacity.
Grand View Research projects the global data center market to grow from $383.82 billion in 2025 to $902.19 billion by 2033-a compound annual growth rate of 11.3%. North America, which represents more than 38% of the global market, is expected to grow at 10.5% annually through 2033. Office construction is forecast to grow at 8.5% over the same period.
For real estate professionals and construction firms, this trend creates direct opportunities. Three publicly traded data center REITs offer income and growth exposure to this sector.
Iron Mountain: Legacy Records Manager Turned Data Center Operator
Iron Mountain (NYSE: IRM) converted to a REIT in 2014 after operating as a records management company since 1951. The company now operates colocation data centers and serves 240,000 customers across 61 countries, including 95% of Fortune 1000 companies.
Services include information management, digital transformation, information security, and data center lifecycle management. Shares gained 28% over the past month and 60% year-to-date.
The dividend yields 2.67%, or $3.46 per share annually, with a five-year annualized growth rate of 5.45%.
Digital Realty Trust: Infrastructure for Big Tech
Digital Realty Trust (NYSE: DLR) owns and operates carrier-neutral data centers focused on large-scale, mission-critical facilities. The company provides colocation and interconnection services to cloud providers, enterprises, network operators, and content companies.
The REIT partners with major technology firms including NVIDIA, Oracle, Dell Technologies, and Advanced Micro Devices. It hosts NVIDIA's AI Factory Research Center in Northern Virginia and operates the Digital Realty Data Center Innovation Lab with AMD-a facility where customers test AI deployments in production colocation environments.
Shares are up 29% year-to-date. The dividend yields 2.5%, or $4.88 per share annually.
Equinix: The World's Largest Data Center REIT
Equinix (NASDAQ: EQIX) converted to a REIT on January 1, 2015, and now operates more than 280 data center locations across six continents. With a market cap near $108 billion, it is the world's largest data center REIT by size.
The company provides digital infrastructure and interconnection services, enabling enterprises and cloud providers to colocate IT infrastructure and access cloud on-ramps in low-latency environments. It serves large multinational enterprises, cloud providers, and telecommunications operators.
Shares are up 43% this year. The dividend yields 1.92%, or $20.64 per share annually. While the yield is lower than competitors, Equinix has increased its distribution for 10 consecutive years, with a five-year annualized growth rate of 12.01%.
For real estate and construction professionals tracking infrastructure investment, AI for Real Estate & Construction resources provide context on how artificial intelligence is reshaping property management and facility planning in the data center sector.
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