11 Worst Performing Data Center Stocks in 2025

Core Insights - The data center industry is experiencing significant growth driven by the demand for artificial intelligence, with estimates suggesting a potential increase in global data center needs by 100 gigawatts by 2030 [2][3] - Despite the overall growth in the sector, not all companies are benefiting equally, with some facing challenges such as poor execution and heavy debt, leading to sharp declines in their stock prices [3][4] Group 1: Industry Overview - Goldman Sachs and McKinsey & Company emphasize the critical role of high-density data centers in the AI race and as foundational infrastructure for digital services [1][2] - The demand for AI capacity is rising rapidly, creating a significant opportunity for data center operators [2] - The power requirements for data centers are projected to nearly triple from 68 to 196 gigawatts in the coming years, highlighting the need for investment in power solutions [10] Group 2: Company Performance - DigitalBridge Group Inc. is one of the worst-performing data center stocks in 2025, with a year-to-date return of only 4.6%, despite being a major player in the digital infrastructure space with over $96 billion in assets [8][9] - NetApp Inc. has a year-to-date return of 3.3%, struggling to keep pace with the broader market due to competition from pure-play cloud providers, although its hybrid model remains appealing to enterprises [12][15] - Analysts have a cautious outlook on NetApp, with two-thirds holding a Neutral rating, while the company maintains a growth forecast of 2% for the next quarter and 3% for the year [13][15]