Susana SchwartzSiemens and Reinhausen to mass produce compact, solid-state transformers
Data center REITs are one of the top-performing real estate subsectors, with total returns surging roughly 36%. Local moratoriums, energy grid constraints, and community pushback may actually be increasing the near-term financial value and pricing power of existing data center footprints owned by established operators.
Because of the slowdown in massive greenfield facilities, pure-play data center REITs are set up for a strong second quarter, with companies like Equinix — who we recently profiled in AI TechTalk – and Digital Reality, holding sizable pricing leverage.
Oppenheimer analyst Timothy Horan raised his long-term profit targets for both companies yesterday, citing “unprecedented demand for compute capacity, which continues to exceed supply and fuel shortages.” He noted the types of data centers the REITs focus on—collocation centers—are in particular demand, especially those in the five- to 10-megawatt range because of the increasing pivot toward inference.
Susana Schwartz
Technology Editor
RCRTech
AI Infrastructure Top Stories
Alibaba accelerates AI spend: Alibaba, whose capex reachedCNY 67.7 billion, is turning AI from a strategic bet into a rapidly scaling business, raising $10.2 billion through a discounted share sale to fund AI infrastructure, chips and models.
Marvell – Google custom chips: Marvell Technology and Google will co-design custom semiconductor products for Google’s TPU ecosystem. With the deal, Google got a stock warrant worth up to $12.2 billion, if fully exercised.
AI Today: What You Need to Know
Accelerated computing in space: SpaceXAI will deploy NVIDIA Vera CPUs to accelerate agentic AI workloads at a massive scale, with the first CPU built for AI agents. SpaceXAI will also use Vera Rubin NVL72 for its Starmind AI satellite.
Microsoft – Qcells expand alliance: With a 25% rise in its 2025 emissions, Microsoft is looking for more sustainable power to its data centers. It will expand its multi-year alliance for 12 GWs of solar modules and construction with Qcells.
Liquid/air-cooled rack-scale systems: Cisco is expanding its Secure AI Factory with Nvidia to include Supermicro servers, offering access to liquid- and air-cooled rack-scale systems that will be validated and sold as part of the Cisco portfolio.
High-capacity optical transport: Fujitsu company 1Finity announced an advanced middle-mile fiber network being built statewide across New Mexico. It’s already integrated new 1Finity IP over DWDM and is activating services..
EPA rules on gas/diesel generators: The U.S. Environmental Protection Agency (EPA) is proposing and enacting rule changes that remove federal public notice mandates and ease pollution disclosure requirements for data centers.
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