Data Centers to Benefit in FY25: Mizuho's Strong Outlook

Mizuho Securities has expressed a confident outlook for data center companies in FY25, especially for leading firms like Digital Realty Trust (DLR) and Equinix (EQIX). With rising demand driven by global digital transformation, cloud computing, and the expansion of 5G networks, these companies are poised for significant growth in the coming years.

Key Drivers for Growth:

1. Increased Demand for Cloud Services:
   As businesses move more of their operations to the cloud, data centers are integral in providing scalable and secure infrastructure. The surge in cloud services adoption is expected to continue fueling demand for data storage solutions.

2. Expansion of AI and Edge Computing:
   The increasing need for AI processing power and edge computing further drives demand for hyperscale data centers, where companies like Digital Realty and Equinix are positioning themselves as leaders.

3. 5G Technology:
   The rollout of 5G networks will require additional data center infrastructure, particularly in edge computing, to reduce latency and enable faster data transmission across various devices.

Insights for Investors:

For those analyzing data center stocks, Financial Modeling Prep APIs can offer valuable data and metrics to evaluate the market:

• Revenue Product Segmentation API:
  Understand the revenue breakdown of data center companies and evaluate their market segment growth.

• Earnings Historical API:
  Track past earnings and trends to assess the growth trajectory of key players like Equinix and Digital Realty.

Conclusion:

Mizuho's bullish stance on data center REITs reflects the growing significance of digital infrastructure. As the world becomes increasingly dependent on cloud-based technologies and AI, companies like Digital Realty and Equinix are well-positioned for robust growth in FY25 and beyond. The demand for data centers will likely continue to rise as new technologies like 5G and AI gain momentum.