Digital Realty stock gains as AI data center narrative splits investors

Digital Realty’s mini‑rebound in the face of a downgrade captures an emerging split in how capital markets are pricing the AI infra boom. Bank of America now sees flagship data center REITs as closer to bond proxies—solid cash-flow machines but not the sharp end of hyperscale AI build‑outs—because many of the biggest multi‑gigawatt campuses are being developed by newer, often private platforms that can move faster on land, power, and permitting.([ts2.tech](https://ts2.tech/en/digital-realty-stock-rebounds-despite-bofa-downgrade-as-data-center-stocks-brace-for-cpi-fed/))

For the AGI race, this is a reminder that not all “AI infrastructure” exposure is created equal. Public REITs like Digital Realty and Equinix still provide essential colocation and interconnect capacity, but the most aggressive AI training clusters—from Stargate‑style complexes to Meta’s Prometheus—are increasingly bespoke projects with different risk-reward profiles. That bifurcation may push some traditional data center operators either to partner more directly with frontier labs or to lean into stable enterprise and edge workloads rather than chasing bleeding‑edge AI at any cost.([fool.com](https://www.fool.com/investing/2025/11/02/ai-needs-data-centers-and-digital-realty-trust-del/?utm_source=openai))

In practical terms, the story suggests capital for AI infra will keep flowing, but via more specialized vehicles—infra funds, private equity, and direct joint ventures with hyperscalers—rather than only via listed REITs. That doesn’t slow the build‑out of the physical substrate for AGI, but it does change who captures the upside and how transparent their strategies are to the public markets.