Could Data Center REITs be the most attractive REITs investment for the years to come?

The significance of Data Centers cannot be understated. They housed the infrastructure of the digital age. I have written another article that highlights important points of Data Centers.

In this blog post, we are going to discuss why data center REITs could be the best REITs investment in the coming years!

TL;DR

Data centers can expect to see demand from DLTs, UCaaS & Cloud gaming services.

#1 Distributed  Ledger Technologies

Despite the crypto winter of 2022, DLTs have seen rapid widespread adoption in recent years. Particularly in the space of Finance (with Defi and CBDCs) and Artificial intelligence. We can reasonably assume that in the coming years there will be more gateway nodes, mining equipment, and storage nodes as the industry matures. 

#2 Unified communications as a service (UCaaS)

UCaaS is the next generation of communication technology. The cloud-delivered unified communications model supports six communications functions:

  1. Enterprise telephony
  2. Meetings include audio, video, web conferencing
  3. Unified messaging
  4. Instant messaging and presence for (personal & team)
  5. Mobility
  6. Communications-enabled business processes

UCaaS needs data servers in order to operate that data-intensive task flawlessly. UCaaS is meant to aid the integration of global communication networks, it is likely that their cloud servers are dispersed globally as well.

#3 Cloud gaming service

With Xbox GamePass, Google stadia, and PlayStation Now, it is not going to be a big surprise that in a few years time, cloud gaming is going to be the dominating means of how gamers consume their content. With Cloud Gaming, customers expect latency & reliability which has only just been made possible with the row-out 5G network infrastructure. As the next generation of telecommunication infrastructure being built out, we can expect demand for data centers to store Cloud gaming services to rise.