Data center REITs slump as AI companies signal slower advances

  • Digital Realty and Equinix stocks declined after warnings about AI advancements.
  • Anthropic, OpenAI and xAI pledged to slow progress, according to the report.
  • Andrew Batson said current AI models still have significant adoption runway.

Shares of Digital Realty and Equinix, two of the largest data center REITs (real estate investment trusts), fell after warnings about advances in artificial intelligence. Digital Realty CEO Andrew Power said pledges by Anthropic, OpenAI and xAI to slow their progress did not amount to "pencils down" for AI or the real estate supporting it. Andrew Batson, JLL’s global head of data center research and strategy, said adoption of current AI models still has significant room to grow.

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