The AI Infrastructure Race: Reshaping Digital Real Estate Investment

Global X Data Center REITs & Digital Infrastructure ETF US37954Y2366

As we move through early 2026, a fundamental shift is redefining the digital infrastructure landscape. The sector is evolving beyond traditional real estate, morphing into a hybrid "tech-utility" model. This transformation is creating clear divisions within portfolios like the Global X Data Center REITs & Digital Infrastructure ETF, where the primary differentiator is now the capacity to support artificial intelligence workloads.

A critical bottleneck has emerged for data center expansion: access to reliable electrical power. Companies within the ETF that have secured long-term power purchase agreements or developed their own sustainable energy sources are commanding a premium in the market. Furthermore, the ability to obtain regulatory permits for new sites has become a significant factor in company valuations.

Simultaneously, interest rate sensitivity remains a central concern for the fund's holdings. Real Estate Investment Trusts (REITs) are heavily reliant on debt financing, making them vulnerable to elevated capital costs. Stable government bond yields are a prerequisite for this sector to maintain attractive valuation metrics, such as AFFO multiples. Consequently, volatility in the fixed-income market has a direct and immediate impact on the ETF's net asset value.

Segment Divergence: AI Demand vs. Telecom Cycles

The market spotlight is firmly on hyperscale data centers engineered for modern computational loads, particularly those driven by AI and machine learning. This specialization starkly separates these modern REITs from conventional commercial property ventures. While these providers benefit from full order books, the cell tower segment faces a more uncertain dynamic. A key question for 2026 is whether network operator investment will be sufficient to deliver new growth for tower companies. Market observers are closely monitoring the annual capital expenditure budgets of major telecom providers for clues.

• Hyperscale Computing Facilities: These assets remain in focus due to massive AI-driven demand, creating a distinct performance path.
• Connectivity and Cell Towers: This segment operates on different cycles, with its fortunes tied to carrier spending on 5G network densification.
• Energy as a Constraint: Access to electricity and sustainable power sources has become a decisive evaluation criterion for data center operators.

Portfolio Rebalancing on the Horizon

Investors are advised to monitor the ETF's upcoming periodic rebalancing. Significant performance disparities between pure-play digital infrastructure providers and diversified telecom REITs could lead to shifts in the weightings of major holdings like Equinix, Digital Realty, and American Tower. Such changes would alter the fund's risk profile relative to the broader market.

Looking ahead through the remainder of February 2026, "differentiation" will continue to be the dominant theme. The investment focus is moving away from classic infrastructure assets and toward next-generation facilities capable of meeting the enormous power and cooling demands of advanced computing systems.

@ boerse-global.de | US37954Y2366 THE