Dividend stocks may benefit from growing resistance to data center expansion

Rising opposition to new artificial intelligence data centers could support existing data center real estate investment trusts, according to analysts cited in the report. Community concerns over land use, electricity demand, water use, and noise are slowing or challenging some new projects in the U.S. The article highlights three public data center REITs: Digital Realty Trust, Equinix, and Iron Mountain. Each has posted strong share gains this year and offers a dividend yield of roughly 2% to 3%, while recent quarterly results for all three topped expectations and led to higher fullyear guidance. Analysts said tighter permitting and local pushback may limit new supply, which could increase the value of existing facilities and give established operators an advantage. At the same time, they noted that longer approval timelines and higher costs could also weigh on future growth.