3 Under-the-Radar AI Infrastructure Stocks Powering the Next Buildout
Prologis Inc. (NYSE: PLD), Gladstone Land Corporation (NASDAQ: LAND), and Black Hills Corporation (NYSE: BKH) are attracting attention as the AI narrative expands beyond the mainstream.
The so-called "Mag 7" stocks may be cooling off, but the artificial intelligence story is far from over. In a recent conversation with Marc Lichtenfeld, the focus shifted from headline names to the less obvious businesses enabling the AI boom—particularly the essential infrastructure behind the data center buildout.
Lichtenfeld remarked that the recent softness in mega-cap tech stocks was expected following their significant multi-year runs. He emphasized the importance of identifying companies that supply the necessary land, power, and resources for AI development.
The 'Picks and Shovels' Approach to AI Investing
Rather than speculating on which platform or chipmaker will dominate the AI landscape, Lichtenfeld advocates for investing in companies that will thrive regardless of market leaders. His strategy is to focus on businesses that are integral to the ecosystem, supplying capacity and infrastructure to the AI giants.
Prologis and the Race to Control Data Center Land and Power
Prologis Inc. (NYSE: PLD) is a real estate investment trust known for its warehouses and industrial facilities. Lichtenfeld believes it can become a significant landlord for data centers due to its ability to provide 5.7 gigawatts of power and 15,000 acres in Texas suitable for data center development. This is crucial as hyperscalers rush to expand their capacities.
Financially, Prologis showed momentum with a 7% revenue increase in 2025, and it offers an attractive yield of around 3%, continuing a history of dividend growth.
Gladstone Land and the Unexpected Value of Water Rights in the AI Economy
Gladstone Land Corporation (NASDAQ: LAND) isn't directly involved in building data centers, but its farmland real estate investment trust model presents an intriguing angle in this context. Lichtenfeld points out that the AI buildout could enhance the value of rural land, especially where water access is limited. Gladstone owns 55,000 acre-feet of water rights across California and Arizona, critical for cooling data centers.
As the market begins to recognize the value of these assets, Gladstone has seen property sales at substantial premiums. Investors benefit from a yield of approximately 5%, paid monthly, while waiting for the market to adjust.
Black Hills and the Quiet Utility That Could Benefit From the Data Center Migration
Black Hills Corporation (NYSE: BKH) is an electric utility with natural gas exposure, strategically positioned as data centers expand into lower-cost regions like Wyoming. This state has become appealing for data centers due to its land availability and lower electricity costs.
While Black Hills is a utility and not a high-flying tech stock, it offers steady demand growth as new data center campuses come online. The company yields about 3.8% and has consistently raised its dividend since 1971, reflecting a strong corporate history focused on reliability.
Lichtenfeld anticipates that the impact of AI-related growth will become more apparent in 2026. For investors seeking AI-linked exposure with a defensive profile, this timeline aligns well with the business model of these companies.
The takeaway from Lichtenfeld’s insights is clear: AI investing doesn't hinge solely on the performance of the Mag 7 stocks. As mega-caps take a breather, the market rewards the next layer of beneficiaries—companies that provide the foundational resources required for AI.
Data centers depend on tangible resources, not just market hype. This is why Prologis, Gladstone, and Black Hills stand out—they represent the infrastructure side of AI that often goes unnoticed. For more details on these companies, visit Inside Ticker.