New York, Jan 31, 2026, 13:25 EST — The market has closed.
- Shares tied to data centers fell Friday, with Vertiv and Arista Networks taking the biggest hits.
- Investors begin the week focused on data center REIT earnings and the Feb. 6 U.S. jobs report, searching for hints on interest rates and demand.
- Sentiment in the data center trade remains driven by Big Tech’s AI expansion—and the ways it’s being financed.
Data center stocks ended the week lower on Friday. Vertiv and Arista each dropped over 4%, as investors pulled back from AI infrastructure plays heading into the weekend.
That’s key now since these shares represent a crowded bet on the expansion of data centers powering artificial intelligence — from power equipment to cooling units and network switches that keep chip racks humming.
They react quickly whenever the rate outlook changes. Data center REITs and high-growth suppliers often get repriced as traders price in the possibility that borrowing costs will remain elevated for an extended period.
On Friday, Vertiv dropped 4.5% to $186.18, while Arista slid 4.3% to $141.74. Equinix dipped 0.6% to $820.93, and Digital Realty was down 0.9% at $165.95. The Global X Data Center & Digital Infrastructure ETF (DTCR) fell 2.5%, with the Pacer Data & Infrastructure Real Estate ETF (SRVR) losing 2.0%.
The broader market showed signs of unease. U.S. stocks ended Friday in the red after President Donald Trump announced his intention to nominate former Fed governor Kevin Warsh as the next chair. Investors were also digesting a stronger-than-expected producer-price report. “Markets are calibrating” to the choice and its policy implications, noted Michael Hans of Citizens Wealth. (Reuters)
Big Tech spending also rattled markets this week. Microsoft’s cloud revenue miss triggered a steep selloff Thursday. Meta, on the other hand, soared after posting a strong forecast alongside a 73% surge in its capex budget—boosting demand for data center infrastructure and hardware. “There are all sorts of storm clouds in the background,” noted John Praveen at Paleo Leon. (Reuters)
Landlords in the sector will report earnings soon. Digital Realty is set to release its fourth-quarter results on Feb. 5, followed by Equinix on Feb. 11. Both operate as REITs—real estate investment trusts that own and lease data centers and their infrastructure. (Digital Realty)
Arista, a major provider of high-speed switching equipment for large data centers, will release its earnings on Feb. 12. (Arista Networks)
Friday’s pullback hasn’t derailed the long-term demand narrative. S&P Global Market Intelligence highlighted Equinix’s plan to install over 24,000 new cabinets across the Americas by 2027, driven by AI’s impact on data center needs. The buildout continues, even if the market action feels uneven. (S&P Global)
The road ahead is far from smooth. A shift in rate expectations or a pullback in spending by hyperscalers could slam both REIT valuations and supplier order books simultaneously — and the market has proven quick to punish “good” growth that falls short of lofty forecasts.
Investors are gearing up for the Feb. 6 U.S. jobs report, the next major catalyst, before a slew of key earnings hit the tape. They’ll be hunting for clues on AI budget trends. “Capex spending on building out AI infrastructure will not see any letup,” said Sid Vaidya of TD Wealth. (Reuters)
