MS · News · 20260825N

AI Data Center Demand

MORGAN STANLEY · 2026-08-25 · Importance 17 · Surprise 24

Morgan Stanley anticipates a significant wave of data-center contracts for powered-shell operators by October. Demand is being driven by AI customers seeking projects that can be energized before the end of 2027. The research also points to rising lease rates and favorable implications from the ERCOT classification process for operators including Cipher, TeraWulf, Riot, Hut 8, and Galaxy.

Key facts

• MORGAN STANLEY expects Dynatrace to achieve durable growth of 20% or more and for net-new ARR growth to exceed 20% through fiscal year 2029. source
• MORGAN STANLEY anticipates a significant wave of data-center contracts for powered-shell operators by October 2026 driven by AI customers seeking projects that can be energized before the end of 2027. source
• MORGAN STANLEY upgraded Dynatrace from Equalweight to Overweight and raised its price target to $65. source
• MORGAN STANLEY maintains an "Attractive" industry view and has "Overweight" ratings on Cipher, TeraWulf, Riot, Hut 8, and Galaxy in its data-center coverage. source