AI infrastructure REITs investment trend

What happened: Cantor Fitzgerald initiated coverage on April 8, 2026, rating Digital Realty Trust (DLR), Equinix (EQIX), and Iren (IREN) as 'Overweight', with price targets of $211, $1,173, and 'unassigned' respectively. Cantor cited AI infrastructure as an attractive investment area. Iren, a recent entrant, has seen over 70% of analysts remain bullish, with expectations of over 100% upside, despite execution risks. IREN stock has surged 716% in the past year, driven by its pivot to AI infrastructure.

Market impact: The AI infrastructure REITs sector has seen significant interest, with DLR, EQIX, and IREN among the top performers. The Pacer Data & Infrastructure Real Estate ETF (SRVR) yields around 2% from REIT dividends, with top holdings including DLR and EQIX. The bullish sentiment is driven by growing demand for AI-linked compute infrastructure, benefiting data center REITs.

What to watch next: Iren's upcoming earnings (Q2 2026) will provide insights into its AI infrastructure build-out progress. Cantor Fitzgerald's price targets for DLR and EQIX will be tested, with any significant deviation from these targets potentially signaling a shift in analyst sentiment. Additionally, the broader AI sector's performance and any regulatory developments around data center REITs will shape this narrative's evolution.