| 2017-09-13 12:50:21|
EQIX, DLR… 12:50 09/13 09/13/17
Data Center REITs lower after cautious comments from Palihapitiya
Shares of Data Center Real Estate Investment Trusts are moving lower after Social Capital's Chamath Palihapitiya said yesterday at CNBC's Delivering Alpha conference that the space may become obsolete as chips shrink in size. Google (GOOG, GOOGL) is reportedly developing a chip that runs 50% of all its computing on 10% of the silicon, Palihapitiya said. He added, "We can literally take a rack of servers that can basically replace seven or eight data centers and park it, drive it in an RV and park it beside a data center. Plug it into some air conditioning and power and it will take those data centers out of business." Shares of Equinix (EQIX), Digital Realty (DLR), CoreSite Realty (COR), QTS Realty Trust (QTS), CyrusOne (CONE) and DuPont Fabros (DFT) are trading lower on the day.
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