Demand for data center capacity will remain strong for at least the next five years, predicts a July 23 report from Moody’s Ratings, helping REITs Digital Realty Trust and Equinix to grow their portfolios and uphold key credit metrics.

These REITs’ increased use of joint venture arrangements, pre-leasing of capacity under construction, and good returns on the new investments will help maintain their current credit ratios and strong liquidity. Although rapid technological innovations will pose significant obsolescence risks throughout time, the two REITs are better equipped than most of their peers to respond to the changing environment, says Moody’s.

For one, Digital Realty and Equinix will benefit from strong demand for data centers. Large tenants, such as cloud service providers and social media companies, coupled with massive computing needs related to artificial intelligence and cryptocurrencies, are driving demand for data center capacity. To meet this deman