LandBridge (NYSE:LB) +5.8% pre-market Tuesday after saying it entered into a strategic collaboration with NRG Energy (NYSE:NRG) to explore the development of a potential data center site in Texas' Delaware Basin. The site could contain a 1,100 MW natural gas ...

Microsoft (NASDAQ:MSFT) said on Thursday that it had signed a deal to spend $4B on a new, second data center in Wisconsin. The second data center — with the $4B to be spent over a period of three years — will follow Microsoft's previous $3.3B investment ...

Summary of Key Points from the Conference Call Industry Overview - The focus of the conference call is on the technology sector, particularly the impact of AI-related capital expenditures (capex) on economic growth in the United States [1][2]. Core Insights and Arguments - **Impact of Data Center Investment**: Investment in data centers is projected to contribute approximately 10-20 basis points (bps) to annual growth rates, with a significant evaluation of its actual contribution in the first half of 2025 [2]. - **Tech Capex Contributions**: The broader category of business investment in technology products and software is highlighted, with a notable contribution from data centers and AI software sales. However, personal computer spending is currently contributing less to GDP growth compared to business spending [3][5]. - **AI Productivity Gains**: There is skepticism regarding the immediate realization of productivity gains from AI investments, suggesting that while substantial funds are being allocated, the expected productivity improvements may not yet be evident [4]. - **GDP Contribution from Tech Investment**: Despite the heightened focus on AI since the launch of ChatGPT in Q4 2022, tech investment contributed only 0.1% to GDP growth in 2024, with a more substantial contribution of 0.5% in the first half of 2025 [5][6]. - **Domestic Final Sales**: The contribution from domestic final sales of tech is particularly significant, adding 1.3% to GDP growth in 1H25, indicating limited growth in final sales outside the tech sector [6]. Additional Important Insights - **Measurement Challenges**: There are concerns regarding the accuracy of measuring tech investment in GDP, including issues with the price deflator for software and potential undercounting of domestic value-added in US-branded semiconductors manufactured abroad [14][15][16]. - **Hyperscaler Capex Growth**: Hyperscaler capital expenditures have been growing faster than reported NIPA measures, suggesting that actual tech spending may be understated. This discrepancy raises questions about the accuracy of GDP contributions from tech investments [22][27]. - **Future Projections**: While hyperscaler capex is expected to remain high, growth rates are projected to decelerate significantly from approximately 60% in 2024 and 2025 to 19% in 2026 and 9% in 2027. This deceleration could impact reported GDP contributions [27][29]. Conclusion - The technology sector, particularly driven by AI investments, is playing a crucial role in economic growth, but measurement challenges and the timing of productivity gains present complexities for accurate assessments of its impact on GDP. Future growth in tech investment is anticipated, albeit at a slower rate, with significant implications for overall economic performance [20][29].

September 17, 2025 09:53 PM GMT Global Valuation, Accounting & Tax | North America AI Arms Race: Putting Hyperscaler Capex in Perspective Hyperscalers are in the midst of an unprecedented investment cycle, with capex-to-sales ratios nearing past peaks seen in the dot-com fiber build out and exceeding the shale fracking boom. Finance leases push headline numbers even higher while the margin impact is delayed until assets come online. Key Takeaways Substantial amounts of AI investment are already locked in, b ...

Summary of Key Points from Conference Call Industry Overview - **Data Centers**: CBRE anticipates a pickup in data center investment volume in the second half of 2025, despite a more than 50% year-over-year decline in investment activity in the first half of 2025 due to economic uncertainty [2][6][36]. - **Construction and Machinery**: The construction sector is expected to see a re-acceleration in non-residential construction in 2026, driven by data centers and related power generation [3][19]. Core Insights - **Data Center Trends**: - Primary market supply reached a record 8,155 MW, up 17.6% from the second half of 2024 and 43.4% year-over-year, with vacancy rates dropping to a record low of 1.6% [6]. - Investment in data centers is shifting towards larger projects, with a focus on sites with 200 MW+ of power [6]. - Lease rates for requirements of 10 MW+ increased by as much as 19% regionally [6]. - Power availability remains a significant constraint, leading to investments in markets with better access to power [6]. - **Machinery and Equipment**: - Companies involved in engineering and planning (FLR, J, WSP) and those building supporting infrastructure (PWR, MTZ, PRIM, EME, DY) are expected to benefit from increased construction demand [4]. - Demand for machinery is driven by construction activities, benefiting rental companies (URI) and OEMs (DE, CNH) [4]. Additional Important Insights - **Truck Production Forecast**: ACT Research forecasts a 23% decline in Class 8 truck production for 2025, with a further 12% decline expected in 2026 [5][34]. - **Investor Sentiment**: Recent discussions indicate a shift in investor focus from construction to energy and tariffs, with concerns about whether data center strength can offset tariff headwinds [10]. - **Non-Residential Construction**: The forecast for non-residential construction has been revised downwards for 2025, with expectations of a 1% decline, but a growth forecast of 4% for 2026 remains intact [24]. - **Fiber Investment**: The BEAD program is expected to drive significant fiber investment, with estimates suggesting a market share of around 10% for certain companies, potentially leading to close to 10% growth in 2026 consensus revenue [27]. Market Trends - **Power and Infrastructure**: Positive trends in power and infrastructure sectors have been noted, with power increasing by 1.4% year-over-year from April to July [21]. - **Telecom Margins**: Telecom margins were slightly below expectations in Q2, with a focus on understanding the factors affecting margins moving forward [33]. Recommendations for Investors - Focus on companies with broad non-residential exposure such as MLM, VMC, OSK, and those with structural thematic exposure like DY, PWR, MTZ, and PRIM [25]. This summary encapsulates the key points discussed in the conference call, highlighting the current state and future outlook of the data center, construction, and machinery industries.

Economic Indicators - The Consumer Price Index (CPI) reported a year-over-year inflation rate of 2.9%, meeting Wall Street expectations, indicating that inflation remains under control despite concerns about tariff-induced inflation [1] - US consumers and companies are currently experiencing minimal price shock, suggesting a stable economic environment [1] Technology Sector - Tech stocks are performing strongly, bolstered by Oracle's earnings report, which revealed a backlog of approximately $500 billion, signaling robust demand in the AI market [2] - The AI market is expected to continue its growth trajectory, with spending on AI and data centers likely to remain static or increase [2] Market Trends - The NYSE recorded an 80/80 upside breadth day, with 80% of stocks rising, indicating strong market participation and bullish demand [5] - The Russell 2000 Index ETF (IWM) has increased by 9.32% over the past month, suggesting a positive outlook for small-cap stocks, particularly in a lower interest rate environment [11] Stock Performance - AI-related stocks have seen significant gains, with CoreWeave up approximately 26%, Astera Labs up more than 20%, and Arm Holdings up around 12% for the week, reflecting strong investor interest in the sector [8] - The iShares Ethereum ETF (ETHA) is forming a "High-tight flag" pattern, which is historically a strong bullish signal [9][10]

Core Insights - Digital Realty Trust, Inc. (DLR) is a Dallas-based REIT focused on data centers, with a market cap of $55 billion, catering to the increasing demand for cloud computing and digital transformation [1][2] - DLR is classified as a large-cap stock, serving a diverse clientele including technology firms and financial institutions, providing secure infrastructure solutions for digital information management [2] Financial Performance - DLR reported Q2 operating revenue of $1.5 billion, reflecting a year-over-year growth of 10.1%, exceeding consensus estimates by 3.5% [5] - The company's core FFO was $1.87 per share, up 13.3% from the previous year and 3.5% above Wall Street expectations [5] - DLR raised its fiscal 2025 guidance, projecting revenues between $5.9 billion and $6 billion, and core FFO between $7.15 and $7.25 per share [5] Stock Performance - DLR's shares have declined 18.6% from its 52-week high of $198, reached on November 29, 2024, and are down 8.8% over the past three months, underperforming the S&P 500 Index's 8.3% return [3] - Over the past 52 weeks, DLR has gained 8.8%, which is lower than the S&P 500's 20.1% increase during the same period [3] - Year-to-date, DLR shares are down 9.1%, compared to a 10.4% surge in the S&P 500 [3] Technical Indicators - DLR has been trading below its 200-day moving average since early August and below its 50-day moving average since late July, indicating a bearish trend [4]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Digital Realty Trust Inc. (NYSE:DLR) is a real estate investment trust that provides data center, colocation, and interconnection services globally. It is set to report its Q3 2025 earnings on Oct. 23. Wall Street analysts expect the company to post EPS of $0.85, down from $1.67 in the prior-year period. According to Benzinga Pro, quarterly revenue is expected to reach $1.52 billion, up from $1.43 billion ...

CoreWeave - CoreWeave has established itself as a leading provider of generative AI infrastructure, operating a GPU-centric cloud designed for scaling GenAI workloads [2][3] - The company went public in March, raising $1.5 billion in the largest U.S. tech IPO since 2021, with shares initially priced at $40 and peaking at $187 in June [3][4] - In Q1, CoreWeave reported $982 million in revenue, a 420% increase year-over-year, and signed an $11.9 billion deal with OpenAI [4] - Guidance for Q2 revenue was raised to $1.06-1.10 billion, with a full-year 2025 revenue forecast of $4.9-5.1 billion [5] IREN Limited - IREN Limited, formerly Iris Energy, focuses on combining power-intensive computing with renewable energy, operating data centers optimized for AI workloads [8][10] - The company’s infrastructure is built on NVIDIA's reference architecture, offering 3.2TB/s InfiniBand connectivity, which is attractive for enterprises needing low-latency GPU compute [9] - IREN's shares have increased by 67% in 2025, reflecting the market's growing appreciation for green energy and reliable infrastructure in AI [11] Nebius Group - Nebius Group is a Netherlands-based technology company providing full-stack infrastructure for the global AI industry, operating AI-focused data centers and GPU clusters [13][14] - The company leverages NVIDIA GPUs and custom software to offer an AI-native cloud platform optimized for large-scale AI training and inference [14] - Nebius has raised fresh funding and is expanding its operations in North America and Europe, with its stock up nearly 100% year-to-date and a consensus Buy rating from analysts [15] Industry Overview - The emergence of companies like CoreWeave, IREN, and Nebius highlights the critical role of infrastructure in the AI revolution, as they provide the necessary compute power and data management [16] - These companies are positioned to benefit from the increasing demand for scalable, efficient, and secure AI infrastructure, making them potential investment opportunities [17]

Financial Data and Key Metrics Changes - Core FFO including net promote income was $1.46 per share and excluding net promotes was $1.47 per share, both ahead of forecasts [7] - Occupancy ended the quarter at 95.1%, down just 10 basis points sequentially, outperforming the market by 290 basis points [7] - Net effective same store growth was strong, with rent change across the global portfolio monetizing an additional $75 million of NOI, reflecting a 53% net effective basis and 35% cash [7][8] Business Line Data and Key Metrics Changes - Build to suit activity saw significant growth, with $1.1 billion in starts for the first half, the largest start to a year ever [9] - The company signed agreements for an additional three build to suits post quarter end, indicating strong demand from major customers [9] - The leasing pipeline reached historically high levels, up 19% year on year, with a good balance across different deal stages and types [24][25] Market Data and Key Metrics Changes - In the U.S., net absorption was subdued at 28 million square feet, with market vacancy ticking up 10 basis points to 7.4% [13] - Market rents declined approximately 1.4% during the quarter, while values remained essentially flat [12] - The leasing pipeline stands at 130 million square feet, reflecting significant interest and need for space [14] Company Strategy and Development Direction - The company remains committed to its strategy of serving customers at the center of consumption, focusing on logistics real estate as a strategic asset [18][19] - There is a strong emphasis on expanding the distributed energy platform, with a goal of one gigawatt of solar production and storage by year-end [10] - The company is increasing development starts to a new range of $2.25 billion to $2.75 billion, reflecting improved visibility in logistics starts [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted that while conditions remain choppy, the market is holding up reasonably well, with expectations for improved demand as clarity on policy emerges [15][18] - The company expressed confidence in long-term trends driving the business, despite short-term uncertainties [18] - Management highlighted that the current environment has calmed significantly since April, providing improved visibility for guidance [35] Other Important Information - The company closed on $5.8 billion in financing activity, contributing to over $7 billion of liquidity held at quarter end [11] - Strategic capital business saw net outflows of approximately $300 million during the quarter, with teams developing new offerings [12] - Bad debt trends were better than expected, with expectations of around 40 basis points for the balance of the year [71] Q&A Session Summary Question: Impact of Liberation Day on Leasing Pipeline - The leasing pipeline is promising, up 19% year on year, with good balance across different deal stages and types [24][25] Question: Cadence of Leasing Activity - Leasing activity accelerated through May and June, with the quarter ending only down about 10% from normal [31] Question: Guidance Details - The increase in guidance is due to improved visibility and outperformance in the quarter, with confidence in landing at the stronger end of the range [36] Question: Timing of Growing Pipelines to Signed Leases - Decision-making remains deliberate, with clarity on the macro front needed to convert the pipeline into signed leases [39] Question: Bad Debt Trends - Bad debt is trending better than expectations, with elevated levels around 35-40 basis points [71] Question: Geographic Market Dynamics - Strong long-term fundamentals in certain markets like Southern California could lead to a quick recovery as demand increases [78][79]