2 data center ETFs to buy in October 2026

The article compares two ETFs offering exposure to data centers and digital infrastructure: DTCR had approximately $2 billion in assets, 27 holdings and a 0.50% expense ratio as of October 13, 2026; SRVR had approximately $351 million in assets, 77 holdings and a 0.49% expense ratio as of September 2026. SRVR’s three largest named holdings collectively represented about 47% of its portfolio in early September. Both funds may benefit from demand for AI and cloud capacity, but the article highlights capital and construction costs, power availability, borrowing costs, interest-rate sensitivity and valuation risks.

Analysis

The key underwriting risk is the gap between AI-related demand for capacity and returns on newly built capacity. Power availability, interconnection delays and construction costs can defer rent commencement or absorb the benefit of higher leasing; strong demand alone does not ensure attractive incremental returns. Over 6–18 months, the differentiator is likely to be power-secured, well-utilized facilities—not simply exposure to the AI theme. A further counterweight is customer substitution: large cloud and AI customers can build capacity themselves or shift workloads, limiting landlords’ pricing power.

These ETFs are better viewed as overlapping real-estate and infrastructure exposures than as clean AI-demand trades. Their shared large positions mean owning both may add less diversification than the holdings counts imply; American Tower also dilutes the direct data-center link. In the near term, rate moves and property-valuation sensitivity may dominate incremental leasing optimism. Over 1–3 months, monitor operator commentary on leasing, pre-leasing, power access and returns on new investment. The thesis weakens if new capacity is delayed, utilization disappoints, or capital spending rises without corresponding leasing commitments. With no valuation, flow or current operating data provided, the article supports monitoring rather than chasing either fund.

Key Decisions for Investors

• Do not buy both DTCR and SRVR on the assumption they provide distinct exposure. Before selecting one, compare current holdings overlap, trading liquidity and concentration; reported holdings counts alone do not establish diversification.
• Watch EQIX and DLR earnings commentary for leasing commitments, utilization, power availability and returns on development. Treat demand announcements without committed capacity or lease economics as weak evidence for earnings conversion.
• No immediate directional ETF trade: consider a staged position only after operating data confirms demand is converting into leases and power-secured capacity. Reassess if guidance indicates rising investment without corresponding leasing or if property valuations weaken materially.
• Near-term rate repricing is a key downside catalyst; a sustained rise in financing costs or property yields could outweigh AI-related optimism. Conversely, improved power access and committed customer leases would strengthen the 6–18 month case.