In this article, we will look at the 10 Best Grid Modernization Stocks to Buy for AI Infrastructure.
AI infrastructure is starting to look less like a pure data-center story and more like a grid-capacity story. Data centers are still the visible layer, but the strain is moving upstream into transformers, substations, switchgear, transmission lines, power-management systems, and grid-edge software. The International Energy Agency said global electricity demand from data centers rose 17% in 2025, while electricity use from AI-focused data centers surged 50%, far above the 3% growth in global electricity demand. The agency also expects data centers to account for about half of U.S. electricity demand growth through 2030.
That pressure is already showing up in grid equipment markets. Reuters reported on May 11 that U.S. demand for generator step-up and substation transformers has climbed 274% and 116%, respectively, since 2019, while transformer prices have risen about 80% over five years, and lead times for large units can stretch to four years. Companies exposed to electrification hardware, power delivery, grid construction, and utility modernization are therefore becoming part of the AI infrastructure supply chain. Recent moves from ABB and GE Vernova show the same pattern: AI-driven electricity demand is feeding orders and capacity expansion for grid equipment, not just servers and chips.
Methodology
We identified grid modernization stocks with direct exposure to AI-driven electricity demand, including companies tied to switchgear, transformers, substations, transmission construction, power management, grid-edge intelligence, and utility capex. We ranked the list in descending order by the short percentage of float, sourced from stockanalysis.com.
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10. Itron, Inc. (NASDAQ:ITRI)
Short Percentage of Float: 11.53%
Itron, Inc. (NASDAQ:ITRI) is one of the best grid modernization stocks to buy for AI infrastructure.
On April 28, Itron, Inc. said its first-quarter results came in ahead of expectations, helped by strong execution and some projects running ahead of schedule. The company reported $587 million in revenue, adjusted EBITDA of $92 million, and total backlog of $4.4 billion at quarter-end. More importantly for this list, Itron said utility customers are prioritizing resiliency and affordability, calling the multi-year trend to add intelligence to the grid “structural.” Its Outcomes revenue rose 22% year-over-year, while its newer Resiliency Solutions segment contributed $16 million after the addition of Urbint and Locusview.
That puts Itron in the software and grid-edge layer of AI infrastructure rather than the heavy-equipment layer. As utilities face higher loads from data centers, electrification, and distributed energy resources, they need better forecasting, real-time visibility, demand response, and construction management tools. Itron’s January 29 grid-edge update also said its portfolio had shipped more than 16 million distributed-intelligence-enabled meters, managed more than 100 million endpoints, and dispatched more than 70 GWh of flexible customer load and generation in 2025.
Itron, Inc. provides intelligent infrastructure products and services for utilities and cities, including smart meters, communications networks, grid-edge intelligence, analytics software, distributed energy resource management, demand response, and related energy and water management solutions.
9. Powell Industries, Inc. (NASDAQ:POWL)
Short Percentage of Float: 11.32%
Powell Industries, Inc. (NASDAQ:POWL) is one of the best grid modernization stocks to buy for AI infrastructure.
On May 4, Powell Industries, Inc. said it was awarded a data center order worth more than $400 million after the end of its fiscal second quarter, calling it the largest order in company history. The order is tied to a behind-the-meter design of on-site generation assets, which makes it directly relevant to AI infrastructure’s power bottleneck rather than just general industrial demand. Powell also booked a mega electric utility order and a mega data center order during the quarter, each worth more than $75 million.
The numbers support the same grid-modernization angle. Powell reported $490 million in new orders, up from $249 million a year earlier, while backlog rose 33% year-over-year to $1.8 billion as of March 31, 2026. The company said demand from data center buildouts, AI capacity growth, and future power demand should remain supportive for its commercial and electric utility end markets. For investors, that puts Powell Industries, Inc. in the electrical distribution and control layer needed to support large-load AI infrastructure.
Powell Industries, Inc. designs, manufactures, and services custom-engineered equipment and systems used to distribute, control, monitor, and protect electrical energy across utility, industrial, commercial, oil and gas, petrochemical, and other infrastructure markets.
8. MasTec, Inc. (NYSE:MTZ)
Short Percentage of Float: 4.97%
MasTec, Inc. (NYSE:MTZ) is one of the best grid modernization stocks to buy for AI infrastructure.
On April 30, MasTec, Inc. reported first-quarter results that showed how much infrastructure demand is building across power delivery, clean energy, and data-center-adjacent construction. Revenue rose 34% year-over-year to $3.8 billion, while 18-month backlog increased 28% to a record $20.3 billion. The company also raised its full-year 2026 outlook, now expecting revenue of $17.5 billion and adjusted EBITDA of $1.5 billion.
The grid-modernization angle is clearest in Power Delivery. MasTec said Power Delivery revenue rose 16% to $1.05 billion in the quarter, while EBITDA increased 40% to $72 million. On the company’s earnings call, management said Power Delivery benefited from transmission, system-hardening, and reliability spending, while AI and data centers are adding to electricity demand and could require major grid expansion. The segment also posted a 1.6x book-to-bill ratio, with backlog reaching a record $6.2 billion after new contracts and expanded work on existing projects.
MasTec, Inc. provides infrastructure construction and engineering services for power delivery, clean energy, communications, pipeline, industrial, and civil infrastructure markets, including transmission, distribution, substations, renewable energy, data center, and utility-related projects.
7. Hubbell Incorporated (NYSE:HUBB)
Short Percentage of Float: 4.82%
Hubbell Incorporated (NYSE:HUBB) is one of the best grid modernization stocks to buy for AI infrastructure.
On May 4, Hubbell Incorporated announced a definitive agreement to acquire NSI Industries for $3.0 billion in cash. NSI makes electrical fittings, connectors, components, and wire-management products for industrial, infrastructure, and commercial markets, and Hubbell said the deal would strengthen its Electrical Solutions portfolio. The company also said NSI’s products fit growth areas, including light industrial, datacenter, and network infrastructure applications, with NSI expected to generate about $570 million in revenue in 2026.
The acquisition gives Hubbell a more direct way to expand into the physical electrical products needed as AI infrastructure raises power density and connection complexity. That matters because the company’s grid-related demand is already strong. In its April 30 update, Hubbell said Grid Infrastructure net sales rose about 18% in the first quarter, while core utility transmission and distribution markets remained strong, with load growth supporting transmission and substation demand. The company also said Electrical Solutions’ growth was helped by strong datacenter and light industrial markets.
Hubbell Incorporated manufactures utility and electrical solutions, including transmission and distribution components, connectors, switchgear, grid automation products, wiring devices, lighting controls, and related infrastructure equipment.
6. Vertiv Holdings Co (NYSE:VRT)
Short Percentage of Float: 3.55%
Vertiv Holdings Co (NYSE:VRT) is one of the best grid modernization stocks to buy for AI infrastructure.
On April 27, Vertiv Holdings Co announced the acquisition of Strategic Thermal Labs LLC, adding cold-plate design, server-side liquid cooling, and high-density thermal validation expertise to its AI infrastructure portfolio. Vertiv said the deal is meant to strengthen its ability to simulate real high-density compute conditions, optimize the interaction between the thermal chain and power train, and support customers across design, integration, commissioning, and lifecycle operations.
That is relevant to grid modernization because AI data centers are forcing electrical infrastructure to work harder from the utility connection point down to the rack. Vertiv is not a utility grid builder like Quanta or a transformer supplier like GE Vernova, but it sits inside the “grid-to-chip” power chain, where higher rack densities require integrated power, cooling, controls, and service systems. The pressure is evident across the broader power market: Reuters reported on May 11 that U.S. transformer demand has surged since 2019, with lead times for large units stretching up to four years. For AI infrastructure investors, Vertiv Holdings Co is a load-side beneficiary of the same power bottleneck.
Vertiv Holdings Co provides critical digital infrastructure products and services, including power management systems, thermal management, liquid cooling, racks, modular infrastructure, monitoring software, and lifecycle services for data centers, communication networks, and commercial and industrial facilities.
5. American Electric Power Company, Inc. (NASDAQ:AEP)
Short Percentage of Float: 3.34%
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the best grid modernization stocks to buy for AI infrastructure.
On May 5, Reuters reported that American Electric Power Company, Inc. raised its five-year capital investment plan to $78 billion, an 8% increase from the plan released three months earlier, as data-center growth pushes the utility to expand its system. The company signed 7 GW of new large-scale energy project agreements in the first quarter, mainly in Ohio and Texas, and now expects 63 GW of incremental load by 2030. Reuters noted that nearly 90% of that expected load is tied to data centers, including hyperscalers.
The update makes AEP a more direct grid-modernization name for AI infrastructure because the spending plan is tied to transmission investments, generation additions, and the need to connect large-load customers faster. AEP said the new load is backed by agreements with industrial customers, hyperscalers, and data-center developers, while its latest capital increase includes transmission investments in PJM and SPP, as well as new natural gas-fired generation in Indiana. For investors, American Electric Power Company, Inc. sits on the utility side of the AI power bottleneck, where grid expansion is becoming a condition for data-center growth.
American Electric Power Company, Inc. operates regulated electric utilities and transmission assets across multiple U.S. states, providing electricity generation, transmission, distribution, grid infrastructure, and related energy services.
4. Quanta Services, Inc. (NYSE:PWR)
Short Percentage of Float: 3.17%
Quanta Services, Inc. (NYSE:PWR) is one of the best grid modernization stocks to buy for AI infrastructure.
On April 30, Reuters reported that Quanta Services, Inc. raised its 2026 profit forecast after stronger demand from large-load industries such as AI data centers boosted its results. The company now expects 2026 adjusted earnings of $13.55 to $14.25 per share, above analysts’ average estimate of $13.09 per share, according to LSEG data cited by Reuters. Reuters also noted that Quanta benefited from hyperscaler investment in artificial intelligence data centers, while its first-quarter revenue rose to $7.87 billion from $6.23 billion a year earlier.
The company’s backlog gives the story more weight for a grid-modernization list. Quanta reported a total backlog of $48.5 billion at the end of the first quarter, including $40.1 billion in its Electric segment, which covers the power delivery work needed as utilities, generators, and large-load customers expand their infrastructure. Management also said Quanta is positioned around converging utility, generation, and large-load markets, which it estimated at a $2.4 trillion addressable market through 2030.
Quanta Services, Inc. provides infrastructure solutions for utility, renewable energy, power generation, communications, pipeline, and energy industries, including design, installation, repair, and maintenance services for energy and load-center infrastructure.
3. GE Vernova Inc. (NYSE:GEV)
Short Percentage of Float: 2.94%
GE Vernova Inc. (NYSE:GEV) is one of the best grid modernization stocks to buy for AI infrastructure.
On April 22, Reuters reported that GE Vernova Inc. raised its 2026 revenue and adjusted core profit margin forecasts as rising demand from data centers and grid infrastructure strengthened its core businesses. The company now expects 2026 revenue of $44.5 billion to $45.5 billion, up from its earlier forecast of $44 billion to $45 billion, while its adjusted EBITDA margin outlook increased to 12% to 14% from 11% to 13%. Reuters noted that electricity demand from AI-linked data centers is lifting orders for both gas turbines and grid equipment.
The backlog detail makes the story more directly relevant to grid modernization. GE Vernova added $13 billion to its backlog, taking the total to $163 billion, and now expects backlog to reach $200 billion by 2027, a year earlier than previously forecast. Reuters also reported that CEO Scott Strazik expects the company to reach at least 110 GW of combined gas turbine backlog and slot reservation agreements by year-end. For AI infrastructure investors, that places GE Vernova Inc. in the power-equipment layer behind data-center growth, where grid capacity, generation availability, and electrification hardware are becoming key constraints.
GE Vernova Inc. provides power, wind, and electrification technologies, including gas turbines, grid solutions, power conversion and storage systems, electrification software, consulting services, and related energy infrastructure products.
2. nVent Electric plc (NYSE:NVT)
Short Percentage of Float: 2.08%
nVent Electric plc (NYSE:NVT) is one of the best grid modernization stocks to buy for AI infrastructure.
On May 1, nVent Electric plc (NYSE:NVT) reported record first-quarter sales, orders, and backlog, with management saying infrastructure led the company’s growth due to broad-based data center demand across both gray and white space. Sales rose 53% year-over-year to $1.2 billion, while organic sales increased 34%. The company’s backlog also increased to $2.6 billion, and nVent raised its full-year 2026 outlook to 26%-28% reported sales growth and 21%-23% organic sales growth.
The story fits the grid-modernization angle because nVent’s products sit inside the electrical connection and protection layer that supports high-density data centers and utility-linked infrastructure. Its Systems Protection segment, which includes enclosures and protection systems for critical equipment, posted 76% sales growth in the quarter, including 50% organic growth. That makes nVent Electric plc (NYSE:NVT) relevant to AI infrastructure beyond servers and chips: as data centers require more power-dense facilities, they also need electrical systems that connect, protect, and organize critical power equipment safely.
nVent Electric plc (NYSE:NVT) provides electrical connection and protection solutions, including enclosures, electrical fastening systems, low-voltage power and grounding products, data center infrastructure products, thermal protection systems, and related industrial electrical solutions.
1. Eaton Corporation plc (NYSE:ETN)
Short Percentage of Float: 2.05%
Eaton Corporation plc (NYSE:ETN) is one of the best grid modernization stocks to buy for AI infrastructure.
On April 8, Eaton Corporation plc (NYSE:ETN) announced that it would invest more than $30 million in a new 370,000-square-foot manufacturing facility near Omaha, Nebraska, to expand U.S. production of medium-voltage switchgear. The company said the facility is expected to begin production in 2027 and is aimed at demand from nearly 3,000 planned U.S. data centers, where modular and scalable power systems are becoming more important for speeding up power availability.
That makes Eaton Corporation plc (NYSE:ETN) a direct grid-modernization name inside the AI infrastructure buildout, rather than a loose electrification play. Switchgear is one of the practical bottleneck products needed to connect large loads safely and reliably, especially as data centers place heavier demands on substations, distribution networks, and on-site electrical systems. The broader market backdrop supports the same point: Reuters reported on May 11 that U.S. demand for generator step-up and substation transformers has risen sharply since 2019, while transformer prices have climbed about 80% over five years, and large-unit lead times can stretch to four years.
Eaton Corporation plc (NYSE:ETN) provides power management products and services, including electrical components, switchgear, circuit protection, power distribution equipment, backup power systems, aerospace products, vehicle systems, and related industrial technologies.
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