** Shares of data center firms falling on Tues, adding to sharp losses on Mon after Chinese startup DeepSeek triggered steep selloff in artificial intelligence-linked names

** Roll out of DeepSeek's free model raised doubts for continued strong demand for data centers

** Digital Realty's DLR.N shares down 5% on Tues. Stock shed nearly 9% loss in previous session, hitting over over 3-mth low

** Equinix EQIX.O off 1%, Iron Mountain IRM.N down ~6% and Core Scientific CORZ.O down 7% on Tues. On Mon, EQIX lost ~4%, IRM fell >6%, while CORZ tumbled ~29%

** Vertiv Holdings VRT.N, which designs and builds data center infrastructure, last down 2%, after 30% plunge on Mon

** In research note late Mon, Jefferies said it doesn't "subscribe to the knee-jerk reaction" that DeepSeek's model will significantly slow data center investment, adding that sell off on Mon creates a buying opportunity for DLR, EQIX and CORZ

** Jefferies said it "would be surprised to see hyperscalers slow their capex plans as the AI space just got even more competitive, and the risk of falling behind is too high"

** Low cost of DeepSeek's R1 model will drive prices down for all models, Jefferies said, which will accelerate enterprise adoption, driving colocation data center demand

** In 2024, DLR rose 32%, EQIX gained 17%, IRM surged 50%, while VRT rocketed ~137%

** Shares of CORZ have more than tripled since co emerged from bankruptcy last Jan

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))