Forget AI Stocks: This Infrastructure REIT Is Wall Street's Secret Weapon

AI stocks person been the blistery commercialized implicit the past year. That's owed to surging request for chips by companies gathering AI models and applications.

However, chips and related hardware are lone portion of the AI story. Companies request infrastructure to location each this high-tech hardware and transmit each their AI-related data. That plays close into American Tower's (NYSE: AMT) strategy. The infrastructure REIT is softly gathering information centers to enactment AI workloads. In doing so, it's astir to go Wall Street's concealed weapon.

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American Tower is 1 of the world's largest REITs. It's a starring autarkic owner, operator, and developer of multitenant communications existent property with a planetary portfolio of implicit 149,000 sites. Additionally, it owns a highly interconnected footprint of U.S. information halfway facilities.

The REIT bought its information halfway level successful 2021 done its $10.1 cardinal acquisition of CoreSite. The information halfway REIT owned 25 information centers crossed 8 large U.S. markets. While it was a sizable deal, it wasn't a large deviation from the REIT's strategy. American Tower bought CoreSite to enactment the accelerating planetary deployment of 5G networks. The woody followed its $9.4 cardinal acquisition of Telxius Towers earlier successful the twelvemonth and its $3.5 cardinal acquisition of InSite Wireless Group the erstwhile year. 5G was besides the superior absorption of those operation deals.

While 5G was the archetypal rationale down buying CoreSite, the institution has since started to leverage its expertise successful gathering information centers to make facilities for AI. Last month, CoreSite announced the motorboat of autochthonal 400 Gbps (400G) Amazon Web Services (AWS) Direct Connect astatine its Chicago information halfway campus. That made it an perfect determination for high-bandwidth, performance-intensive workloads specified arsenic AI applications, including training, interface, and agentic automation. The institution present has 3 locations with 400G capabilities.

Several CoreSite customers are already capitalizing connected the advantages of 400G connectivity. For example, a starring cybersecurity institution is leveraging it to process ample quantities of information and accelerate real-time menace analysis.

Additionally, respective fiscal firms are evaluating 400G to present the velocity and reliability they request for high-speed trading and quantitative research. As a result, American Tower's information centers could soon go Wall Street's concealed limb for boosting returns. By securing abstraction successful 1 of these CoreSite facilities, these fiscal firms volition beryllium capable to accelerate the modernization of their IT and standard their AI operations, thereby redeeming clip and money.