Potential AI slowdown is not ‘end of the world’ for data center real estate, says Digital Realty CEO
Data center REITs are bracing for an AI slowdown — but Digital Realty's CEO says the buildout isn't stopping.
Why it matters
AI compute demand is cooling from its peak, reshaping data center economics and REIT valuations. Practitioners budgeting capex and cloud strategy need to recalibrate expectations; the infinite-growth narrative is shifting.
The key facts
8 to knowDigital Realty and Equinix stock slumped on AI slowdown warnings
Data center REIT sector feeling pressure from softening AI capex forecasts
Digital Realty CEO argues slowdown is manageable, not existential for buildout
Published Sep 15, 2026 — timing suggests recent market repricing
Digital Realty and Equinix stocks slumped on AI advancement warnings
Data center REIT sector sentiment shift tied to AI growth expectations
Digital Realty CEO argues slowdown is not catastrophic for data center real estate demand
Signal: AI infrastructure buildout demand assumptions are being re-priced in public markets
Go to the source
CNBC Technologycnbc.com
Publisher excerpt: Digital Realty and Equinix, two of the largest data center REITs, saw their stocks slump after warnings over AI advancements.