Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the data center reits industry, and their latest annual reports show $180.6 billion of combined revenue and a median operating margin of 20.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Data center REITs own buildings full of servers and network equipment and lease space and power to cloud providers and enterprises. Demand is driven by cloud and artificial intelligence workloads, and power availability limits growth. The first numbers to compare across companies here are leased megawatts and bookings, backlog of signed leases and occupancy.
Key Industry Metrics
- Leased megawatts and bookings: The amount of power capacity signed for by customers in the period. Data centers are sold by power, so bookings lead revenue and show demand for new capacity.
- Backlog of signed leases: Leases signed but not yet generating rent as buildings are completed. It gives visibility on future income, with timing tied to construction and power delivery.
- Occupancy: The share of built capacity that is leased. High occupancy supports pricing, while low occupancy after heavy building signals oversupply.
- Funds from operations per share: Net income with depreciation added back and property gains removed, divided by shares. It is the main REIT earnings gauge, used for dividends and valuation.
- Development capital and yield: Money invested in new facilities and the expected return on it. Building is costly and power-constrained, so yield against cost of capital shows whether growth adds value.
Primary Macro Drivers
- Cloud and artificial intelligence demand: Companies and cloud providers lease more capacity as workloads grow, shown in leased megawatts and bookings.
- Power availability: Sites without grid power cannot grow, so power supply sets how much capacity can be built and leased, shown in backlog and development timing.
- Construction cost: Equipment, labor and power infrastructure costs set the build cost, so increases lower development yield.
- Interest rates: Higher rates raise financing cost and the yield investors demand, shown in funds from operations and valuation.
Major Risks
- Customer concentration in hyperscalers: A handful of cloud providers lease much of the capacity, so one pulling back moves bookings, shown in the customer note.
- Power and permitting constraints: Utility delays and local rules can hold up sites, so watch development timing and power commitments in filings.
- Overbuilding: If supply outruns demand, leasing slows and prices soften, shown in occupancy, bookings and backlog.
- Capital intensity: Building and powering sites takes large amounts of capital, so funding conditions matter, shown in development spending and debt.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |
Data Center REITs Filers in the SEC Record
110 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6798. Their latest fiscal years end between 2022 and 2026, and together they reported $180.6 billion of revenue. Median revenue growth over the prior year was 2.9%. Median operating margin was 20.0% and median net margin 10.0%. Median total liabilities were 54% of total assets, and 77 of 110 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Welltower Inc. | $10.8 billion | 35.6% | n/a | 8.6% | FY 2025 |
| American Tower Corp | $10.6 billion | 5.1% | 45.5% | 24.7% | FY 2025 |
| Equinix Inc | $9.2 billion | 5.4% | 20.0% | 14.6% | FY 2025 |
| Prologis, Inc. | $8.8 billion | 7.2% | 49.6% | 37.9% | FY 2025 |
| Weyerhaeuser Co | $6.9 billion | -3.1% | 10.6% | 4.7% | FY 2025 |
| Iron Mountain Inc | $6.9 billion | 12.2% | 16.9% | 2.2% | FY 2025 |
| Simon Property Group Inc. | $6.4 billion | 6.7% | 49.9% | 84.3% | FY 2025 |
| Host Hotels & Resorts, Inc. | $6.1 billion | 7.6% | 14.0% | 12.5% | FY 2025 |
The 8 largest of 110 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Data Center REITs guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Data Center REITs industry?
Key performance indicators for the Data Center REITs industry include: Leased megawatts and bookings, Backlog of signed leases, Occupancy, Funds from operations per share, Development capital and yield. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Data Center REITs industry?
The Data Center REITs industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Data Center REITs industry?
The primary risks for Data Center REITs companies include: Customer concentration in hyperscalers, Power and permitting constraints, Overbuilding, Capital intensity. Investors should assess each company's exposure to these factors and its track record of navigating them.