3 Data Center Stocks Every Investor Should Own

Jason Williams

Updated June 14, 2024

Over my career (which is getting longer than I care to admit these days), I’ve discovered that one of the most consistent and successful ways to make outsized gains in the stock market is by investing in companies that own things and share profits. And that lesson holds true when it comes to the burgeoning artificial intelligence investment scene. You see, even AI relies on actual physical, tangible things to work its technological magic. And one of those tangible things AI needs is a place to live. So today I want to talk about data center stocks…

data center stocks

Because data centers are the physical buildings that house the servers where AI programs “live.” They also, as the name suggests, store the data those programs rely upon in order to respond to all the prompts they’re given by humans. So they’re critical to the existence, growth, and success of artificial intelligence. And that’s why every investor needs to start paying attention to these three data center stocks right now.

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Top Data Center Stocks: American Tower Corporation (NYSE: AMT)

The first company on my list of top data center stocks is one that might surprise some of you. And that’s because it’s a cellphone tower company. But the thing is that American Tower doesn’t just own cell towers and antennas. It’s a one-stop shop for pretty much all forms of electronic communication. And that includes fiber optics, which are the networks data centers run upon. Fiber optics provide the super-fast connection speeds that AI programs require. And data centers rely on companies like American Tower to maintain a national network of high-speed connections.

data center stocks fiber

But that’s not the only reason American Tower makes my list of top data center stocks. You see, a few years ago, American Tower shelled out beaucoup bucks to buy a data center stock I’d recommended to my readers called CoreSite. My readers cashed out with a 500% gain and American Tower became the owner of some of the finest digital real estate in the entire world. So not only do other data centers rely on communications networks it owns and leases out to stay connected to the outside world… but it’s also a major player in renting out the space for that AI data to live.

Top Data Center Stocks: Astera Labs Inc. (NASDAQ: ALAB)

Next up on our list of top data center stocks is another company that might surprise some more of you. And that’s because this is an incredibly new player in the AI field. And it’s also a company that doesn’t own any data centers. But what it does own is a set of solutions and technologies that help the owners of data centers run them more efficiently. You see, even data runs into bottlenecks. And when that happens, just like on any highway, traffic ensues and everything slows down. That wastes time, causes the servers to work harder, and uses extra energy. It also generates more heat, which means more water has to be used to cool the data centers. So this company makes my list of top data center stocks because it makes data centers more efficient for handling the extra load AI creates…

data center stocks alab

Astera Labs is a relative newcomer to the public investment realm. It just did an IPO earlier this year. And after soaring over 150% from its IPO price, shares finally cooled off enough for me to feel comfortable recommending them to my flagship investment community, The Wealth Advisory. And now that those investors are sitting on a tidy 30% gain, I feel comfortable sharing this gem with you. Astera Labs isn’t a data center company, but it’s definitely still one of the top data center stocks.

Data Center Stocks: The AI Tollbooth

Last but certainly not least on this list of top data center stocks is a more mysterious recommendation. I call it the “AI Tollbooth” because it essentially controls access to the biggest information superhighway in the world. And it essentially charges a toll for companies to access the high-speed network its data centers compose. It’s also the only stock on my top data center stocks list that’s a pure play on data centers. It’s a specialist and it does the job VERY well. And you can see that reflected in its share performance as the AI gold rush started to unfold:

data center stocks tollbooth

It scored investors nearly twice the profits even a hot S&P 500 has delivered. And, unlike the broader index, it’s been shelling out a steady income stream to investors the whole time. (Remember I said the best data center stocks were going to be the ones that shared their profits.) So, as both the owner of one of the most extensive network of data centers in the world AND a company that shares its profits with shareholders (to the tune of $1.5 BILLION a year)… the AI Tollbooth deserves a spot on any list of top data center stocks. So much so that I’ve made a special presentation I’d like to share with you for free to explain how the AI boom hinges on this company’s network.

The Bottom Line on Data Center Stocks

The bottom line here is that when it comes to data center stocks, you don’t have to just focus on data centers. You can find some great companies that will benefit from the exploding need for data storage and transfer that don’t own a single data center. In fact, another investment that could be on this list of top data center stocks is one that’s going to provide the energy to run those data centers. Data centers use a TON of electricity. So much that some towns won’t allow them because the grid simply can’t handle that much extra pull.

So in the future, as the need for data centers continues to grow, we’re going to need a better way to power those data centers that doesn’t involve rolling blackouts for the surrounding communities. And currently, the only viable solution to that problem is hooking these new data centers up to their own power source… a nuclear power source. You see, companies have been perfecting new nuclear reactors that are smaller and more efficient than those of yore. And these small, modular reactors could power entire data centers without any impact on the public energy grid. BUT these new reactors require a new fuel in order to function at all. And there’s only one company in the United States that’s licensed, approved, and ready to produce that fuel.

It’s another of my favorite tangential data center stocks. And I’m not the only one who’s incredibly bullish. My colleague Alex Koyfman recently recommended this company to the members of his premium investment community, The Crow’s Nest. And it’s been such a good one that he’s offered to let me share the report he made for them with you so you can get a fourth in your portfolio of top data center stocks.

So check out the data center stocks and the non-data center data center stocks I’ve shared today. Get yourself invested in one or all of them. Check out my presentation on the importance of these data centers. And make sure to learn what Alex uncovered about the future of nuclear energy.

And, of course, make sure you keep coming back to Wealth Daily every day to stay on top of the hottest investment trends. Remember, before anyone was really looking for data center stocks at all, my investors had cashed out a 500% gain after American Tower bought their data center stock for a very nice premium. So keep coming back here to stay ahead of the crowd, too. Because we’re already getting set up to profit on the next investment trends that will come after the buzz around data center stocks eventually fades.

To your wealth,


Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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