1134 ET - Data center real estate investment trusts could have a big year ahead as demand from AI and cloud computing balloons, Truist analysts say. A third of surveyed REITs are making plans to scale AI adoption, the analysts say. Data centers are likely to have record-low vacancy, face extended construction timelines and contend with limited power sources. A large portion of new supply popping up through 2027 is already pre-leased and rents are growing more than 10% year over year, analysts say. Still, expectations for data centers might be overly elevated, and stocks may be overvalued. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

January 17, 2025 11:34 ET (16:34 GMT)

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