TRADE ALERT - International Portfolio August 2025

For years, we have largely stayed on the sidelines when it came to data center REITs. Rich valuations and relatively poor supply-demand dynamics made the space less appealing compared to other sectors. But today, our view has changed—because the world has changed.

After extensive research and personal use of emerging AI tools, we have come to a clear conclusion: Artificial Intelligence is not just a trend—it’s one of the defining innovations of our lifetime. And powering that revolution are the hyperscale, mission-critical data centers that house the massive computing infrastructure AI demands.

Among the various players in this sector, one REIT stands out as a compelling value play in an otherwise richly valued space. That’s why we are today accumulating even more shares of the company while it still remains discounted.

Why Now? Because AI Changes Everything

As AI development and deployment accelerate, compute requirements are growing exponentially. From training large language models to inference at the edge, AI workloads are power-hungry and data-intensive. These needs cannot be met without a dramatic increase in data center capacity—globally and at scale.

Just consider the investments being made by major tech firms. NVIDIA, Microsoft, Google, Amazon, and Meta are pouring hundreds of billions into AI infrastructure. The demand for high-density, highly connected data center space is surging, and we believe we are still only in the early innings.

This demand is also not cyclical—it’s secular. And it won’t just support current workloads but create a snowball effect as more industries adopt AI-based tools and services.

Data centers are essential to this transformation, and this is why it changes everything for the sector. They are the backbone of it all, from cloud services and AI model training to real-time data analytics and content delivery. This makes data center REITs a critical infrastructure play for the next decade.

A Value Play on Data Centers