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Digital Realty CEO downplays AI slowdown risk for data centers

Digital Realty and Equinix shares fell after concerns that advances in AI could affect future demand for data center capacity.

Reported · Written up by our desk · REITs

Digital Realty CEO said a potential slowdown in AI is not likely to be a disaster for data center real estate, according to CNBC Real Estate.

The outlet noted that shares of two major data center REITs, Digital Realty and Equinix, have dropped following warnings tied to how quickly AI capabilities are advancing.

CNBC Real Estate said the companies were reacting to market concerns about whether improvements in AI could change the pace of demand for data center space.

The comments were framed as an attempt to reassure investors amid the recent stock weakness for the sector.

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