A surge in artificial intelligence and cloud computing spending has created a boom for U.S. communications infrastructure companies, with Bernstein analysts noting that demand for data centers is outpacing supply. More than $1 trillion in investment has been pledged toward physical infrastructure, including large-scale data center construction to support rising computing power needs.

The imbalance has kept vacancy rates low and pricing high, with Bernstein forecasting 13% compound annual growth in global data center demand through 2028. The firm expects market-wide vacancy to hit a trough of about 4.9% in 2026 before rising above 10.5% by 2028 as new facilities come online. Within the sector, Bernstein favors companies focused on enterprise customers rather than hyperscale cloud providers.

Bernstein named Digital Realty its top pick, citing stronger enterprise growth as competitors prioritize hyperscaler demand. The brokerage also rated Equinix Outperform, saying the company's slower build pace should strengthen its position in enterprise data centers. The firm was more cautious on CoreWeave, rating it Underperform due to risks from hyperscale cloud providers potentially shifting from partners to competitors, which could limit long-term growth and pressure cash flow and margins.