Jim Chanos of Kynikos Associates told Harriet Agnew of the Financial Times that he’s betting against “legacy” data centers that face growing competition from Amazon (AMZN), Alphabet (GOOG, GOOGL) and Microsoft (MSFT), companies that have been their biggest customers. Chanos said he is raising several hundred million dollars for a fund that will take short positions in U.S.-listed real estate investment trusts. “This is our big short right now. Their three biggest customers are becoming their biggest competitors. And when your biggest competitors are three of the most vicious competitors in the world then you have a problem,” Chanos told the paper. He did not name specific short positions in the interview. Public data center real estate investment trusts include CyrusOne (CONE), Digital Realty (DLR) and Equinix (EQIX).
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