These ‘underappreciated winners of AI’ also pay solid income

Artificial intelligence is front and center in investors' minds, but they may be overlooking a hot play that can take advantage of the technology's growth — and it pays income. Data center real estate investment trusts are companies that own and manage facilities that house information-technology infrastructure. They are expected to greatly benefit as AI demand ramps up. "The data center REITs are underappreciated winners of AI, because they work in the back end," said Tejas Dessai, director of thematic research for Global X ETFs, which manages the Data Center & Digital Infrastructure ETF (DTCR) . He calls them the "toll booths" of the AI economy. "Every single interaction that users have with AI, every single interaction that software and workflows and agents and robots and what have you will have with AI, will pass through these data centers," Dessai said. Wells Fargo Investment Institute is among those on Wall Street bullish on the market. In a note on Tuesday, analyst John Sheehan pointed out the "unprecedented demand" the data center REITs have experienced. "We believe it possesses durable growth prospects, attractive margins, and solid pricing powers," he said of the subsector. …