Chanos believes large cloud providers, like $AMZN $GOOGL $MSFT will build proprietary data centers instead of outsourcing for it.

"The real problem for data centre Reits is technical obsolescence. 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.”

$EQIX and $DLR both down following his disclosure. Chanos did not explicitly mention which data center REITs he would short.

Chanos is known for sucessfully shorting Enron two decades ago and believes that current market conditions are “very similar to the post-dotcom era.”