The need for data space is growing at an incomprehensible rate. The ‘cloud’ based revolution has put the need for data center storage demand on steroids. Between on demand video, remote storage drives, remote hosted applications and and a list of other emerging technologies, the need for remote data processing and storage is exploding. The digital world is more heavily dependent on offsite storage and processing than it has ever been before. This trend will only increase in the coming years as device and connection technology improves and consumers continue to integrate online technologies into their daily lives.
In the world of investing, multiple data storage companies are structured as Real Estate Investment Trusts (REITs). These REITs are developed in such a way that a significant percentage of their profits must be returned to shareholders in the form of dividends. This makes REITs very attractive to investors looking for a regular return on their investment and exposure to technological growth. With bond yields remaining low and the earliest of Baby Boomers hitting their early 70’s, these investments types of investments (REITs), will be attractive to a large section of the investing community.
The case for digital storage REITs is clear. In a technological world were constant change is ever-present, one constant is the need for greater data storage and processing. For example, whether Facebook is still around next year doesn’t mean the need for data storage is going to slow down. The need for data storage in the technological realm is akin the need for additional infrastructure in a growing city. They go together.
Here’s a list of major data center REITs to start your research.
|Company||Symbol||Market Cap||Recent Share Price||Dividend Yield|
|Digital Realty Trust||DLR||$18.50 Billion||$112.46||3.32%|
|QTS Realty Trust||QTS||$2.98 Billion||$54.28||2.90%|
|DuPont Fabros Technology||DFT||$5.41 Billion||$60.69||3.30%|
|CoreSite Realty||COR||$5.05 Billion||$105.12||3.45%|
|Market Cap, Share Price and Dividend Yield as of 7/21/17|