Sorry, AI Bears: Meta, Microsoft, and Google Lead Record Data Center Demand

The article argues that AI infrastructure demand remains exceptionally strong despite recent pullbacks in data center-related stocks. TD Cowen’s supply-chain checks point to a record 9.6GW of Q2 2026 data center leasing led by Meta, Microsoft, and Alphabet/Google, with a 12.5GW pipeline driven by OpenAI, Anthropic, and ongoing Meta leasing. Morgan Stanley says memory shortages are worsening and may intensify through 2027-2028, supporting the case for continued spending on chips, power, cooling, and data center real estate. The piece highlights that several linked names—such as Vertiv, Micron, Equinix, and Digital Realty—have fallen recently even as fundamentals and analyst targets remain strong. Overall, the market takeaway is bullish for the AI infrastructure complex, especially picks-and-shovels suppliers and landlords, though volatility and valuation risk remain high.