- Elizabeth Warren Targets Amazon, Google, Microsoft And Meta After Warning That AI Data Centers 'Use As Much Electricity As 100,000 Households'
May 13, 2026
On Tuesday, Sen. Elizabeth Warren (D-Mass.) launched a renewed push to examine whether the rapid expansion of AI data centers run by major technology companies is driving up electricity costs for American households.
Warren Raises Alarm Over AI Power Consumption
In a post on X, Warren said that "a single AI data center uses as much electricity as 100,000 households."
She argued that utility companies are shifting infrastructure upgrade costs onto consumers instead of Big Tech firms.
"Utility companies are passing the upgrade costs to you, not to the trillion-dollar tech giants," she wrote, adding, "These companies need to pay their costs."
A single AI data center uses as much electricity as 100,000 households—and utility companies are passing the upgrade costs to you, not to the trillion-dollar tech giants.
I've opened an investigation. These companies need to pay their costs.
— Elizabeth Warren (@ewarren) May 12, 2026
Read Also: 3M Expands AI Data Center Push With New Optical Connectivity Partnership
Senate Probe Targets Big Tech Energy Footprint
In December 2025, Warren, along with Sens. Chris Van Hollen (D-Md.) and Richard Blumenthal (D-Conn.), opened an investigation into whether data center expansion is contributing to rising power bills.
The senators sent letters to Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc.(NASDAQ:META), Alphabet Inc.'s(NASDAQ:GOOG) (NASDAQ:GOOGL) Google, Microsoft Corp (NASDAQ:MSFT), CoreWeave(NASDAQ:CRWV), Digital Realty(NYSE:DLR) and Equinix(NASDAQ:EQIX) seeking details on energy usage and cost allocation.
Lawmakers said AI development is accelerating electricity demand, with the Department of Energy projecting data centers could account for up to 12% of U.S. power consumption by 2028.
They also cited estimates that utilities may spend billions upgrading grids, including new power plants and transmission lines, costs that could be passed on to residential customers.
Utilities and Tech Companies Clash Over Costs
The debate centers on whether infrastructure costs tied to AI growth are being fairly distributed.
Critics argue households are indirectly subsidizing Big Tech expansion, while companies say they pay their own energy costs and operate under regulated utility agreements.
An Amazon spokesperson previously said, "Amazon pays for its own electricity costs," adding that independent research "failed to find evidence that residents are subsidizing our data centers."
Data centers account for about 5% of U.S. electricity use, a share expected to rise as AI grows. McKinsey & Co. projects this could more than double in five years, with data centers driving up to 40% of new electricity demand by 2030.
Story Continues
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Also: Google, SpaceX Reportedly In Talks For Orbital Data Centers Ahead Of Musk's Mammoth IPO
Photo courtesy: bluestork/Shutterstock
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga:
MICROSOFT (MSFT): Free Stock Analysis Report
This article Elizabeth Warren Targets Amazon, Google, Microsoft And Meta After Warning That AI Data Centers 'Use As Much Electricity As 100,000 Households' originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
View Comments
- Digital Realty Declares Quarterly Cash Dividends for Common and Preferred Stock
May 12, 2026
Digital Realty Trust, L.P.
AUSTIN, Texas, May 12, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, announced today its board of directors has authorized quarterly cash dividends for common and preferred stock for the second quarter of 2026.
Common Stock
Digital Realty’s board of directors authorized a cash dividend of $1.22 per share to common stockholders of record as of the close of business on June 15, 2026. The common stock cash dividend will be paid on June 30, 2026.
Series J Cumulative Redeemable Preferred Stock
The company’s board of directors authorized a cash dividend of $0.328125 per share to holders of record of the company’s 5.250% Series J Cumulative Redeemable Preferred Stock as of the close of business on June 15, 2026. The Series J Cumulative Redeemable Preferred Stock cash dividend will be paid on June 30, 2026.
Series K Cumulative Redeemable Preferred Stock
The company’s board of directors authorized a cash dividend of $0.365625 per share to holders of record of the company’s 5.850% Series K Cumulative Redeemable Preferred Stock as of the close of business on June 15, 2026. The Series K Cumulative Redeemable Preferred Stock cash dividend will be paid on June 30, 2026.
Series L Cumulative Redeemable Preferred Stock
The company’s board of directors authorized a cash dividend of $0.325000 per share to holders of record of the company’s 5.200% Series L Cumulative Redeemable Preferred Stock as of the close of business on June 15, 2026. The Series L Cumulative Redeemable Preferred Stock cash dividend will be paid on June 30, 2026.
About Digital Realty
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.
Investor Relations
Jordan Sadler / Jim Huseby
Digital Realty
(737) 281-0101
InvestorRelations@digitalrealty.com
Story Continues
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the amount and timing of expected payment of dividends on our common stock and preferred stock. For a list and description of such risks and uncertainties, see the reports and other filings by the company with the U.S. Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
View Comments
- Digital Realty Declares Quarterly Cash Dividends for Common and Preferred Stock
May 12, 2026 · globenewswire.com
AUSTIN, Texas, May 12, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world's largest cloud- and carrier-neutral data center platform, announced today its board of directors has authorized quarterly cash dividends for common and preferred stock for the second quarter of 2026. Common Stock Digital Realty's board of directors authorized a cash dividend of $1.22 per share to common stockholders of record as of the close of business on June 15, 2026.
- DIGITAL REALTY DECLARES QUARTERLY CASH DIVIDENDS FOR COMMON AND PREFERRED STOCK
May 12, 2026
AUSTIN, TEXAS, MAY 12, 2026 (GLOBE NEWSWIRE) -- DIGITAL REALTY (NYSE: DLR), THE WORLD'S LARGEST CLOUD- AND CARRIER-NEUTRAL DATA CENTER PLATFORM, ANNOUNCED TODAY ITS BOARD OF DIRECTORS HAS AUTHORIZED QUARTERLY CASH DIVIDENDS FOR COMMON AND PREFERRED STOCK FOR THE SECOND QUARTER OF 2026. COMMON STOCK DIGITAL REALTY'S BOARD OF DIRECTORS AUTHORIZED A CASH DIVIDEND OF $1.22 PER SHARE TO COMMON STOCKHOLDERS OF RECORD AS OF THE CLOSE OF BUSINESS ON JUNE 15, 2026.
- Are Wall Street Analysts Bullish on Digital Realty Trust Stock?
May 11, 2026
Digital Realty Trust, Inc. (DLR), headquartered in Austin, Texas, brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. Valued at $68.6 billion by market cap, the company's properties contain applications and operations critical to the day-to-day operations of technology industry tenants and corporate enterprise data center tenants.
Shares of this leading global data center REIT have underperformed the broader market over the past year. DLR has gained 17.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.6%. However, in 2026, DLR stock is up 26.2%, surpassing the SPX’s 8.1% rise on a YTD basis.
More News from Barchart
Broadcom Hits a Bottleneck as OpenAI Revenue Concerns Claim Their First Casualty Palantir Stock Has a ‘High-Class Problem’: Demand for Its Software Is Far Outpacing Supply Dan Ives Can’t Make It Any Clearer: Palantir Stock Is Still a ‘Golden Goose’ Despite Q1 Earnings Fears Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.
Narrowing the focus, DLR’s underperformance is also apparent compared to iShares U.S. Digital Infrastructure and Real Estate ETF (IDGT). The exchange-traded fund has gained about 56.2% over the past year. Moreover, the ETF’s 41.2% gains on a YTD basis outshine the stock’s returns over the same time frame.www.barchart.com
On Apr. 23, DLR shares closed down marginally after reporting its Q1 results. Its FFO of $2.04 per share surpassed Wall Street expectations of $1.94 per share. The company’s revenue was $1.64 billion, topping Wall Street forecasts of $1.61 billion. DLR expects full-year FFO in the range of $8 to $8.10 per share.
For the current fiscal year, ending in December, analysts expect DLR’s FFO per share to grow 9.1% to $8.06 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 33 analysts covering DLR stock, the consensus is a “Moderate Buy.” That’s based on 21 “Strong Buy” ratings, two “Moderate Buys,” and 10 “Holds.”www.barchart.com
This configuration is more bullish than a month ago, with 20 analysts suggesting a “Strong Buy.”
On May 5, DBS analyst Andy Yu CFA maintained a “Buy” rating on DLR and set a price target of $213, implying a potential upside of 9.1% from current levels.
The mean price target of $215.60 represents a 10.4% premium to DLR’s current price levels. The Street-high price target of $250 suggests an upside potential of 28%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
View Comments
- RWR vs. VNQI: Domestic REIT Purity Against International Breadth at a Lower Cost
May 10, 2026
Key Points
Vanguard Global ex-U.S. Real Estate ETF offers broad exposure to international markets with a significantly lower expense ratio of 0.12% compared to the 0.25% fee for State Street SPDR Dow Jones REIT ETF. State Street SPDR Dow Jones REIT ETF concentrates entirely on the domestic U.S. market whereas Vanguard Global ex-U.S. Real Estate ETF holds hundreds of international positions. Income seekers may find the distribution yield of Vanguard Global ex-U.S. Real Estate ETF more attractive than the yield currently provided by State Street SPDR Dow Jones REIT ETF. 10 stocks we like better than SPDR Series Trust - State Street SPDR Dow Jones REIT ETF ›
State Street SPDR Dow Jones REIT ETF(NYSEMKT:RWR) offers concentrated U.S. property exposure, whereas Vanguard Global ex-U.S. Real Estate ETF(NASDAQ:VNQI) provides broad international diversification with a lower cost and higher yield.
Real estate investment trusts (REITs) are often utilized for income and inflation protection, but the geography of those underlying assets matters immensely for a portfolio's risk profile. This comparison pits a domestic U.S. strategy against an international approach, highlighting how regional exposures, varying fee structures, and differing yields impact the risk-adjusted returns for long-term investors looking to diversify away from traditional equities.
Snapshot (cost & size) MetricVNQIRWRIssuerVanguardSPDRExpense ratio0.12%0.25%1-yr return (as of May 8, 2026)15.92%18.89%Dividend yield4.50%3.40%Beta0.731.00AUM$3.7 billion$1.8 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard Global ex-U.S. Real Estate ETF is the more affordable choice for long-term holders, featuring a low expense ratio of 0.12%, which is less than half the 0.25% cost of the State Street SPDR Dow Jones REIT ETF. For those investors who prioritize current income, the Vanguard fund also provides a higher payout, featuring a trailing-12-month distribution yield of 4.50% compared to the 3.40% yield offered by the SPDR fund.
Performance & risk comparison MetricVNQIRWRMax drawdown (5 yr)(35.80%)(32.60%)Growth of $1,000 over 5 years (total return)$999$1,291
What's inside
The State Street SPDR Dow Jones REIT ETF(NYSEMKT:RWR) provides exposure to publicly traded real estate securities within the U.S. by tracking the Dow Jones U.S. Select REIT Capped Index. The portfolio is relatively concentrated with 100 holdings and is dominated by the real estate sector. Its largest positions include Prologis(NYSE:PLD) at 10.17%, Welltower(NYSE:WELL) at 10.04%, and Digital Realty Trust(NYSE:DLR) at 4.77%. Launched in 2001, the fund has a trailing-12-month dividend of $3.73 per share and recently traded with an ex-dividend date of Mar. 23, 2026.
In contrast, the Vanguard Global ex-U.S. Real Estate ETF(NASDAQ:VNQI) invests in international property stocks across more than 30 countries. The fund is much more diversified, holding around 700 positions. Its largest positions include Goodman Group(ASX:GMG) at 3.36%, Mitsubishi Estate (TYO:8802) at 3.09%, and Mitsui Fudosan(TYO:8801) at 2.71%. Launched in 2010, the Vanguard fund has a trailing-12-month dividend of $2.16 per share and tracks the S&P Global ex-U.S. Property Index.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Real estate investment trusts (REITs) are required by law to distribute at least 90% of their taxable income as dividends, making them a natural income vehicle. RWR is a pure expression of that structure, holding roughly 100 U.S. REITs spanning logistics, healthcare, and digital infrastructure. Every holding carries that mandatory income-distribution requirement.
VNQI ventures entirely abroad, spreading nearly 700 holdings across Japan, Australia, Europe, and beyond. International real estate indexes include real estate operating companies alongside REITs, meaning some holdings reinvest profits rather than paying them out, which can modestly soften the income profile. In practice, VNQI still yields more than RWR while charging less than half the fee.
These funds serve different portfolio roles rather than competing directly. RWR is the cleaner domestic income vehicle for investors who want familiar U.S. real estate exposure. VNQI suits those seeking to diversify geographically, accepting currency risk and varying property cycles in exchange for broader international reach at a meaningfully lower cost.
Should you buy stock in SPDR Series Trust - State Street SPDR Dow Jones REIT ETF right now?
Before you buy stock in SPDR Series Trust - State Street SPDR Dow Jones REIT ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SPDR Series Trust - State Street SPDR Dow Jones REIT ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust, Goodman Group, and Prologis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- RWR vs. VNQI: Domestic REIT Purity Against International Breadth at a Lower Cost
May 10, 2026
State Street SPDR Dow Jones REIT ETF(NYSEMKT:RWR) offers concentrated U.S. property exposure, whereas Vanguard Global ex-U.S. Real Estate ETF(NASDAQ:VNQI) provides broad international diversification with a lower cost and higher yield.
Real estate investment trusts (REITs) are often utilized for income and inflation protection, but the geography of those underlying assets matters immensely for a portfolio's risk profile. This comparison pits a domestic U.S. strategy against an international approach, highlighting how regional exposures, varying fee structures, and differing yields impact the risk-adjusted returns for long-term investors looking to diversify away from traditional equities.
Snapshot (cost & size)
Metric VNQI RWR Issuer Vanguard SPDR Expense ratio 0.12% 0.25% 1-yr return (as of May 8, 2026) 15.92% 18.89% Dividend yield 4.50% 3.40% Beta 0.73 1.00 AUM $3.7 billion $1.8 billion
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard Global ex-U.S. Real Estate ETF is the more affordable choice for long-term holders, featuring a low expense ratio of 0.12%, which is less than half the 0.25% cost of the State Street SPDR Dow Jones REIT ETF. For those investors who prioritize current income, the Vanguard fund also provides a higher payout, featuring a trailing-12-month distribution yield of 4.50% compared to the 3.40% yield offered by the SPDR fund.
Performance & risk comparison
Metric VNQI RWR Max drawdown (5 yr) (35.80%) (32.60%) Growth of $1,000 over 5 years (total return) $999 $1,291
What's inside
The State Street SPDR Dow Jones REIT ETF(NYSEMKT:RWR) provides exposure to publicly traded real estate securities within the U.S. by tracking the Dow Jones U.S. Select REIT Capped Index. The portfolio is relatively concentrated with 100 holdings and is dominated by the real estate sector. Its largest positions include Prologis(NYSE:PLD) at 10.17%, Welltower(NYSE:WELL) at 10.04%, and Digital Realty Trust(NYSE:DLR) at 4.77%. Launched in 2001, the fund has a trailing-12-month dividend of $3.73 per share and recently traded with an ex-dividend date of Mar. 23, 2026.
In contrast, the Vanguard Global ex-U.S. Real Estate ETF(NASDAQ:VNQI) invests in international property stocks across more than 30 countries. The fund is much more diversified, holding around 700 positions. Its largest positions include Goodman Group(ASX:GMG) at 3.36%, Mitsubishi Estate (TYO:8802) at 3.09%, and Mitsui Fudosan(TYO:8801) at 2.71%. Launched in 2010, the Vanguard fund has a trailing-12-month dividend of $2.16 per share and tracks the S&P Global ex-U.S. Property Index.
Story Continues
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Real estate investment trusts (REITs) are required by law to distribute at least 90% of their taxable income as dividends, making them a natural income vehicle. RWR is a pure expression of that structure, holding roughly 100 U.S. REITs spanning logistics, healthcare, and digital infrastructure. Every holding carries that mandatory income-distribution requirement.
VNQI ventures entirely abroad, spreading nearly 700 holdings across Japan, Australia, Europe, and beyond. International real estate indexes include real estate operating companies alongside REITs, meaning some holdings reinvest profits rather than paying them out, which can modestly soften the income profile. In practice, VNQI still yields more than RWR while charging less than half the fee.
These funds serve different portfolio roles rather than competing directly. RWR is the cleaner domestic income vehicle for investors who want familiar U.S. real estate exposure. VNQI suits those seeking to diversify geographically, accepting currency risk and varying property cycles in exchange for broader international reach at a meaningfully lower cost.
Should you buy stock in SPDR Series Trust - State Street SPDR Dow Jones REIT ETF right now?
Before you buy stock in SPDR Series Trust - State Street SPDR Dow Jones REIT ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SPDR Series Trust - State Street SPDR Dow Jones REIT ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Digital Realty Trust, Goodman Group, and Prologis. The Motley Fool has a disclosure policy.
RWR vs. VNQI: Domestic REIT Purity Against International Breadth at a Lower Cost was originally published by The Motley Fool
View Comments
- BlackRock’s Larry Fink Says AI Is Creating a New Trillion Dollar Asset Class — And Trump’s Policies May Accelerate It
May 9, 2026
Quick Read
Nvidia (NVDA), Broadcom (AVGO), and Constellation Energy (CEG) are positioned closest to AI infrastructure trends, with Nvidia dominating AI GPUs while utilities like Constellation command premium valuations as data-center electricity demand is projected to double by 2030. Goldman Sachs estimates AI-related data centers could consume 8% of total U.S. electricity demand by decade’s end versus roughly 3% today. BlackRock’s Larry Fink argues AI infrastructure shortages in compute, chips, memory, and electricity could spawn a trillion-dollar asset class of “futures on compute” contracts guaranteeing future access to AI processing capacity, similar to how oil and electricity evolved into massive futures markets. The analyst who called NVIDIA in 2010 just named his top 10 AI stocks. Get them here FREE.
Artificial intelligence has already reshaped the stock market. Semiconductor stocks have rallied, utilities are suddenly growth plays again, and hyperscalers are spending hundreds of billions of dollars building data centers across the U.S.
At the same time, President Donald Trump has pushed for more domestic manufacturing, energy production, and AI infrastructure investment as part of a broader effort to keep the U.S. ahead in the global technology race. But what if AI’s next phase doesn’t just create new companies -- what if it creates an entirely new asset class?
That’s the argument Larry Fink recently made during a public discussion about AI infrastructure and capital markets. The BlackRock (NYSE:BLK) chief executive warned that AI is already creating shortages across four critical markets -- compute power, chips, memory, and electricity -- as companies race to build ever-larger AI systems.
The analyst who called NVIDIA in 2010 just named his top 10 stocks. Get them here FREE.
Those shortages are also driving a wave of U.S. infrastructure spending tied to semiconductor manufacturing, power generation, and domestic data-center construction. Whenever shortages emerge in essential economic resources, Wall Street usually finds a way to financialize them. Oil, natural gas, and electricity all evolved into massive futures markets.
Fink believes AI infrastructure could follow the same path, potentially creating a trillion-dollar asset class centered on “futures on compute” -- contracts tied to future access to AI computing capacity.
AI Is Turning Compute Into a Commodity
Let’s start with what “compute” actually means.
Every AI model -- whether it’s ChatGPT, Gemini, Claude, or enterprise AI software -- runs on computing power supplied by high-end chips and massive data centers. Those systems require:
Story Continues
GPUs from Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) Server infrastructure from Dell Technologies (NYSE:DELL) and Super Micro Computer (NASDAQ:SMCI) Cloud capacity from Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) Huge amounts of electricity
That highlights how AI doesn’t work without enormous physical infrastructure behind it.
Analysts at Goldman Sachs estimate global AI-related infrastructure spending could approach $1 trillion over the next several years. Microsoft, Amazon, Alphabet, and Meta Platforms (NASDAQ:META) are expected to spend $710 billion or more in combined capital expenditures this year alone, much of it tied to AI infrastructure.
As demand for compute rises, pricing power rises with it. That’s where Fink’s idea comes in. Instead of simply renting cloud capacity, companies may someday buy contracts guaranteeing future access to AI compute resources. It could materialize in::
GPU-hours AI inference capacity Data center power allocations Reserved cloud processing capacity
It would resemble oil futures contracts, where airlines lock in fuel prices months ahead of time. Only instead of barrels of crude, companies would hedge the future cost of AI processing power.
Beyond stocks and bonds: AI is forging a trillion-dollar asset class that rivals the energy markets of the past.
Why Wall Street Would Love Compute Futures
Financial markets thrive on scarcity and predictability. AI compute increasingly has both.
During Nvidia's most recent earnings cycle, CEO Jensen Huang noted demand for its Blackwell AI chips exceeded supply for multiple quarters. Microsoft executives have similarly acknowledged AI infrastructure shortages constrained some cloud growth.
Once scarcity appears, Wall Street usually builds financial products around it. Electricity futures already exist. So do carbon-credit markets, uranium funds, and bandwidth pricing contracts. Compute could become the next step because AI has transformed processing power into an economic input rather than just a technology expense. That could radically alter investing.
Here’s what the numbers tell us about the companies already positioned closest to this trend:
Company Forward P/E Ratio AI/Data Center Exposure Nvidia 19 Dominates AI GPUs Broadcom (NASDAQ:AVGO) 23 AI networking/custom chips Vertiv Holdings (NYSE:VRT) 40 Data center cooling/power Constellation Energy (NASDAQ:CEG) 23 Nuclear power for AI demand Digital Realty Trust (NYSE:DLR) 23 (FFO multiple) Data center REIT
What that is showing is the market is no longer valuing AI solely as software. Infrastructure owners are commanding premium valuations because investors increasingly view compute capacity as strategic.
The Hidden AI Story Is Actually Energy
Granted, most investors still think of AI as a semiconductor story. In reality, it may become an energy story disguised as a technology revolution.
The U.S. Energy Information Administration projects electricity demand from data centers could more than double by 2030. Goldman Sachs estimates AI-related data centers may consume as much as 8% of total U.S. electricity demand by the end of the decade versus roughly 3% today. That helps explain why utility stocks suddenly entered AI conversations.
Companies such as Constellation Energy, Vistra (NYSE:VST), and NextEra Energy (NYSE:NEE) have all benefited from investor interest in supplying future AI power demand. That's because compute requires:
Electricity Cooling Fiber networks Advanced memory Semiconductor manufacturing
In short, AI’s next phase may reward infrastructure owners just as much as software developers.
Key Takeaway
Larry Fink’s “futures on compute” idea may sound abstract today, but the market already behaves as though compute has become a scarce commodity. Nvidia's supply constraints, hyperscaler spending races, and the sudden investor obsession with data-center electricity all point in the same direction.
When all is said and done, this isn’t merely about AI chatbots. It’s about whether computing power itself becomes a tradable financial asset. If that happens, sharp investors may need to think beyond software and focus on the companies controlling the infrastructure behind AI -- chips, power, cooling, networking, and data centers. Because in the next phase of the AI boom, owning the “digital oil fields” could prove just as valuable as building the applications running on top of them.
The analyst who called NVIDIA in 2010 just named his top 10 AI stocks
This analyst's 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE.
View Comments
- BlackRock's Larry Fink Says AI Is Creating a New Trillion Dollar Asset Class — And Trump's Policies May Accelerate It
May 9, 2026 · 247wallst.com
Artificial intelligence has already reshaped the stock market.
- New Blackstone REIT to offer pure-play data center exposure
May 7, 2026
Those who live and die by the staying power of the AI boom might soon have a pure-play way to gain exposure to the data center category.
Last week, Blackstone filed to debut a brand new data center REIT, the Blackstone Digital Infrastructure Trust ($BXDC). The fresh listing will open up the private money manager to more retail clients, offering the masses an opportunity to buy a stake in "mission-critical data centers that power the modern digital economy."
According to a filing with the U.S. Securities and Exchange Commission, the new fund projects property yields between 5.75% and 7% per year, with rents rising 2% to 3% annually.
However, there is a potentially big drawback to the fund — and how you feel about it might be a determinant of whether you'll want to invest.
Blackstone adds an option
Blackstone purports that it is the "largest financial investor in data centers and digital infrastructure assets globally," with over $150 billion invested in the category since 2018. It'll have to coast on that reputation alone as it gets off the ground on the public markets.
That's because $BXDC will be starting with no assets. As a sort of "blank check" company, it'll take the $1.75 billion it plans to raise in its IPO to support new acquisitions. But that will make it significantly smaller than other publicly-traded data center REITs:
Equinix ($EQIX) boasts a $105 billion valuation as of today, making it the most valuable data center REIT in the world. Digital Realty Trust ($DLR) claims to have the largest portfolio of data centers on the public markets, with nearly 300 properties to date. Smaller players like Iron Mountain ($IRM), worth $37 billion, are still 17x larger than $BXDC.
For this reason alone, investing in a newcomer like $BXDC might not be as attractive to some investors, even if it is backed by a giant like Blackstone, because you don't really know what you're getting.
Investing in expertise
What you get matters, but as $BXDC takes off, an investment in the fund is basically a bet on Blackstone's sourcing and underwriting.
They have undertaken some of the largest deals in the data center space in recent years, namely with the acquisition of QTS Data Centers (bought in 2021 for $10 billion), AirTrunk (acquired with the Canadian Pension Plan Investment Board in 2025 for $16.1 billion), and Rowan (bought a 49% stake in Apr. 2026 for an undisclosed amount.)
They've also gotten really good at identifying deals. The vast majority of Blackstone's deals come from off-market, a testament to its name recognition and strong relationships. This is how it has amassed a portfolio of over 100 data center investments. Oracle's Saline Township, Michigan, data center is one example; it has put more than $18 billion into that project.
Story Continues
How $BXDC will sort for quality
Based on that, you can imagine they've done a healthy amount of research in advance of launching $BXDC. They've identified a $25 billion pipeline of potential data centers purpose-built for the AI age.
However, $25 billion is a whole lot bigger than $1.75 billion. Blackstone will narrow down the portfolio by focusing on two factors:
The data centers must be "valued at between $250 million and $1.5 billion." They must be "leased to investment-grade hyperscalers."
After sorting by those criteria, it'll take its pick among the best of the crop.
Alignment matters in times like these
Since investors don't know what they're getting, it's understandable that there would be skepticism. To settle worries, Blackstone is investing $200 million through an affiliate to align incentives with retail investors and help fund additional acquisitions.
Concerns might linger, however, many of which are out of Blackstone's hands:
There are increased worries about the supply of new data centers, as well as how this could distort the price of leases in the future. While Big Tech has demonstrated an appetite to spend on data centers, investors are worried about what might happen if or when they pare back CapEx spending. Some big data center projects, such as one championed by OpenAI and Oracle, have been significantly scaled back from their original plans amid financial constraints. Separately, half of all data centers scheduled for 2026 have been delayed or canceled altogether due to construction or energy delays. Finally, industry hawks have posited that improvements in efficiency could diminish the need for massive data centers, a factor that might be playing into these considerations.
Maybe the one consolation is that the leases between major hyperscalers and the tech companies seeking the compute are long and expensive. Assuming they have the money to pay, they will.
This story was originally published by TheStreet on May 7, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
View Comments
