Global X Data Center & Digital Infrastructure ETF

DTCR

Market cap $1.18B

The Global X Data Center & Digital Infrastructure ETF earns a reiterated "Buy" rating, driven by strong momentum and compelling valuation. DTCR has outperformed tech and AI ETFs, benefiting from a 31% return since Q3 2025 and robust real estate exposure. The ETF trades at a low 14.4x P/E with a 9.8% long-term earnings growth rate, yielding a solid 1.5x PEG ratio.

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The Global X Data Center & Digital Infrastructure ETF offers broad, unconstrained exposure to the booming digital infrastructure sector driven by AI, cloud, and 5G demand. DTCR's strategy targets 'picks and shovels'—data centers, towers, fiber, and hardware—benefiting from high barriers to entry and stable, inflation-linked revenue streams. Sector risks include power consumption scrutiny, interest rate sensitivity for REITs, and rapid technology shifts, but DTCR's diversification provides some defensive positioning.

DTCR is an ETF with a 0.50% expense ratio that replicates the Solactive Data Center REITs and Digital Infrastructure Index. It results in a hybrid ETF that manages to integrate the IT segment with that of REITs. Today it still seems to trade at a premium on both segments, even if it seems to be justified by expectations.

I recommend the Global X Data Center & Digital Infrastructure ETF with a "Buy" rating, targeting a 2%-3% portfolio allocation. DTCR offers focused exposure to data center and cellular tower REITs, benefiting from strong industry growth trends and AI-driven demand. The ETF's top-heavy portfolio structure diversifies away from dominant AI stocks like NVDA and AVGO, reducing concentration risk.

Global X's ETF is a great way to invest in data centers and artificial intelligence. Vanguard's REIT ETF is broad-based with $64 billion in assets under management.

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