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Data center REITs post strong FFO and NOI growth into 2026
Nareit data show data center REITs recorded average year-over-year growth of 29.4% in FFO and 15.8% in NOI in the first quarter of 2026, alongside ongoing capital market issuance.
Data center REITs continued to attract investor attention as the sector maintained strong operating performance into 2026, according to Nareit. The properties house specialized IT infrastructure and are designed to protect uptime with features such as uninterruptable power supplies, air-cooled chillers, and physical security, while a range of major technology and telecommunications companies lease the facilities.
Nareit’s REIT Industry Tracker for the first quarter of 2026 showed average year-over-year growth of 29.4% in funds from operations, or FFO, and 15.8% in net operating income, or NOI. The outlet also pointed to prior weakness, noting that data center REIT performance in 2025 fell 14.2%, which it characterized as creating a buying opportunity for some large actively managed REIT-focused real estate funds.
The sector’s investor demand also showed up in fund allocation and market positioning. As of the first quarter of 2026, data centers accounted for the largest year-over-year gain in assets under management at 6.2%, and had the largest percentage share of index weight at 138% across REIT sectors, while through mid-year 2026 the sector was among the top performers with a 33.2% gain.
Nareit said data center REITs have remained active in raising capital, issuing $4.2 billion in unsecured debt and $5.3 billion in equity over the past 12 months. The issuance included two new IPOs focused on data center space, and Nareit added that REITs have also used joint ventures and other vehicles to fund development while maintaining resilient, well-structured balance sheets.