Where to invest for exposure to data centres?

Hi Nick,

We very much appreciate the kind words in a challenging year but onwards and upwards!

We discussed AI and data centres in Wednesdays “Pulse Check Webinar“: we like the space with the stocks you mentioned either owned by MM or potentially on shopping list through 2025 with this theme one area we do expect to be more committed to over the coming months:

• NEXTDC (NXT) – Is a Data Centre owner and operator that we own in our Active Growth Portfolio and are considering increasing our exposure ~$15.
• DigiCo REIT (DGT) – is a Real-Estate Investment Trust that owns and operates digital infrastructure including data centres. It is the new kid on the block, early days but looks good value ~$4.40, 12% below its IPO price.
• HMC Capital (HMC) – is a fund manager that has investments in Data Centres, owning 18.2% of DGT. It also carries strong property exposure which MM likes with the RBA set to cut rates 2-3 times in 2025. Further, it provides exposure to other growth themes, like the energy transition. We like HMC below $10.
• Goodman Group (GMG) – another data centre owner & operator with big plans to roll out 3-4 gigawatts’ worth of these facilities across its portfolio – equivalent to about $30 billion in end value. They also have a broad industrial portfolio and a big bank of land. We’ve “stalked” GMG over recent months, with our deal entry level around $30-32.

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NEXTDC Ltd (NXT)

LAST UPDATED 19/12/2024 15:34

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NEXTDC Ltd (NXT)

LAST UPDATED 19/12/2024 15:34