Digital Realty CEO downplays AI slowdown concerns amid data center stock dip

SentiSense · Published Sep 15, 2026, 7:32 AM ET · Updated Sep 28, 2026, 2:45 AM ET

Digital Realty CEO Andrew Power said a potential slowdown in artificial intelligence spending is not the "end of the world" for data center real estate, even as related REIT stocks fell sharply, with Digital Realty down about 12% and Equinix down about 7% on the day. The comment reflects broader industry debate, with other leaders and policymakers pushing for either tighter AI regulation or continued rapid development. Analysts will watch how sentiment around AI funding influences the valuation of data‑center landlords and related tech firms.

Digital Realty CEO Andrew Power told investors that fears of an AI spending slowdown should not be viewed as catastrophic for the data‑center real estate market, emphasizing that the sector remains resilient despite recent share price weakness in the niche REIT space. His remarks came as data‑center focused real estate stocks sold off sharply, with Digital Realty falling about 12% and Equinix about 7% on the day, raising questions about the durability of the AI‑driven demand surge that has propelled the industry over the past year.

The CEO's reassurance arrives amid a wider conversation about the pace of AI development. A TechRadar analysis highlighted a growing clash between corporate leaders urging a measured slowdown to mitigate risks and political figures, including the U.S. President, advocating for unfettered advancement. The piece outlined five key points of the debate, noting that while many experts argue for "pacing the frontier," others warn such caution could hinder innovation and competitiveness.

Adding perspective, a commentary titled "The AI Trade Is Losing Its Momentum Monopoly" described a shift in market dynamics as AI hype potentially wanes, suggesting that the sector's bullish momentum may be tempering. Together, these viewpoints illustrate a nuanced landscape where investor sentiment, regulatory scrutiny, and corporate strategy intersect.

For investors, the implications are twofold: data‑center landlords like Digital Realty must balance capacity expansion with realistic demand forecasts, and broader tech equities could feel pressure if AI funding contracts. Market participants will likely monitor upcoming earnings releases and any policy signals for clues on whether the AI slowdown narrative gains traction or remains a temporary market wobble.