Digital Realty Trust (DLR): Data Center Stocks Shine with Promising Outlook

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We recently compiled a list of the 11 AI News You Should Not Miss. In this article, we are going to take a look at where Digital Realty Trust, Inc. (NYSE:DLR) stands against the other AI stocks.

Reviewing Rising AI and Security Trends

Cloudflare recently released its fifth annual Year in Review report which highlights trends in internet usage and security, with a focus on AI advancements. Codeium, Claude, and CoPilot entered the top ten most popular generative AI services, while OpenAI maintained its lead. The report also revealed an increase in malicious traffic, with 6.5% of global traffic flagged as potentially harmful. AI bots, like Bytespider and ClaudeBot, were identified as some of the most active, although their traffic slightly decreased over the year.

Other key findings include a rise in government-directed internet shutdowns, with over half of global outages linked to these actions, and the Gaming and Gambling industries becoming the most targeted by cyberattacks.

READ ALSO: 11 Trending AI Stocks on Latest News and Ratings and 10 AI Stocks Taking Wall Street by Storm.

The Impact of AI on Investment Strategies and Market Trends

In a CNBC interview, Angie Newman of UBS Private Wealth Management discussed the challenges posed by geopolitical uncertainty and changing interest rates, emphasizing that stocks and bonds often become more correlated during such times. To hedge against this, she recommended diversifying into alternative assets with low correlation to traditional investments, such as gold and private equity.

She highlighted sectors within private equity, including real estate and data centers, as strong performers, especially with the rise of AI. Regarding AI, Newman noted the importance of diversifying portfolios by considering both tech giants and second and third-tier beneficiaries, such as companies benefiting from AI integration, including those with healthy P/Es and dividends. AI, she believes, will be a key driver of equity returns across various sectors.

Navigating Data Complexity in the AI Era

On December 10, NetApp released a report that stressed the importance of investing in unified data strategies and highlighted the growing need for security and sustainability as AI use expands. The Data Complexity Report highlighted the challenges and opportunities of managing data for AI as organizations move from experimenting with AI to scaling its use.

Key findings include the need for significant investment in AI and data unification, which 79% of tech executives see as crucial for success. Security concerns are rising, with 41% predicting more threats in 2025, especially in AI-leading nations. Sustainability remains a focus, though its importance has slightly declined. The report emphasized that secure, unified, and sustainable data strategies are essential for leveraging AI’s transformative potential while maintaining resilience and innovation.