There’s no question that some of the biggest hype in investing today surrounds the potential of data-centre stocks as technology continues to advance rapidly. With the AI boom over the last few years, specifically, data-centre companies have quickly become some of the most popular stocks to buy.
Over that same period, data centres have quietly become one of the most critical assets in the modern economy. With the growth of cloud computing, 5G, AI training, enterprise software, and even basic storage, everything now relies on infrastructure that can supply massive amounts of power, cooling, and connectivity.
And with global demand accelerating, estimates suggest that over the next decade, we could see more than $7 trillion in capital spending across compute infrastructure, power transmission, renewable energy, and the real estate needed to support new AI factories.
The situation for Canadian investors, though, is somewhat challenging. There aren’t many pure-play data-centre stocks listed on the TSX. There are, however, a handful of high-quality companies that offer meaningful exposure to this ultra-hot industry.
So, if you’re looking for ways to make sure your portfolio is exposed to the rapid growth in data centres, here are three no-brainer stocks to buy now.
Two of the best TSX stocks to buy, regardless of their data centre exposure
If you’re looking to gain exposure to data centres with high-quality stocks, you’re in luck because one of the best long-term investments on the TSX, Brookfield Infrastructure Partners (TSX:BIP.UN), also happens to be one of the most direct data-centre plays available to Canadian investors.
Brookfield Infrastructure has long been a top defensive growth stock thanks to its high-quality and well-diversified portfolio of essential infrastructure assets. In recent years, however, it has made data and digital infrastructure a core strategic focus, investing heavily in telecom towers, fibre networks, and data-centre assets around the world.
The stock has been positioning itself for years, and it’s just getting started. And unlike many of the higher-risk names that investors have been chasing during the AI boom, Brookfield Infrastructure offers stable, predictable earnings backed by long-term contracts.
Brookfield Corp.
On top of that, it also offers a dividend yield of 4.8%, making it a no-brainer investment and one of the best stocks you can buy for data-centre exposure.
Plus, in addition to Brookfield Infrastructure, its parent company, Brookfield Corp (TSX:BN) is another high-quality stock that offers unique exposure to the sector.
In fact, while Brookfield Infrastructure actually owns data centres, you could argue that Brookfield Corp is the better overall investment since it participates in several of the areas needed to support the rise of data centres.
Not only does Brookfield offer exposure to the actual data centres through its stake in Brookfield Infrastructure, but Brookfield Corp also owns assets in real estate, power generation, transmission, and private equity, all of which are vital to the growth of the data-centre ecosystem.
In fact, during Brookfield Corp’s recent investor day, it highlighted that the buildout of AI capacity is not just about constructing server farms. The industry also needs massive investments in land, renewable power, high-voltage transmission, cooling systems, and even the real estate required to house new AI factories.
Therefore, it’s another no-brainer stock to buy both because of its long-term growth potential and the exposure it offers to data centres.
A top digital infrastructure company
If you’re looking for more direct exposure to the sector, your best bet is to pick an American company like Equinix (NASDAQ:EQIX), one of the clearest pure data-centre stocks to buy in North America.
Equinix owns and operates a large global platform of interconnected data centres, serving cloud providers, enterprises, and thousands of digital businesses around the world.
That has made it a direct beneficiary of the growth in cloud computing and AI, as demand for highly connected, carrier-neutral facilities continues to rise. It is also one of the more established names in the space, with a long history of steady growth and strong occupancy.
Furthermore, it even offers a yield of 2.5%, making it one of the best stocks to buy now if you’re looking for data centre exposure.
