10 Best Industrial Stocks Benefiting from the Data Center Boom

In this article, we take a look at the 10 Best Industrial Stocks Benefiting from the Data Center Boom.

Last week, PwC emphasized that over the next 25 years, the growing demand for data and digital services will drive strong investment in data center capacity.

PwC said that investment in data center infrastructure is projected to rise by 116%, from $53.2 billion to $118.4 billion between 2024 and 2027. It added:

“Hyperscale campuses, colocation facilities, and edge sites will be delivered at speed to meet the surging demand created by steady cloud growth, the rapid adoption of generative AI, and expectations for more compute-intensive AI applications and workloads.”

PwC said that as new facilities come online, the rate of construction of additional structures is expected to slow throughout the 2030s. It added:

“By the 2040s, as the market reaches maturity, investments in buildings and infrastructure will stabilize. Looking further ahead, data center investment will shift away from expanding overall capacity and instead concentrate on maximizing the efficiency, flexibility, and utilization of existing assets.”

With this in mind, let’s take a look at the 10 Best Industrial Stocks Benefiting from the Data Center Boom.

Our Methodology

To compile this list, we identified industrial stocks using the Finviz screener and narrowed them down to companies with exposure to the data center sector. Additionally, industrial real estate investment trusts (REITs) were also considered to come up with this list. Our selection focused on stocks with potential upside based on analyst consensus, placing the stock with the highest potential growth at the top. Additionally, we also included the number of hedge funds holding stakes in these companies as of the fourth quarter of 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Note: All pricing data is as of market close on May 8, 2026.

10. Vertiv Holdings Co. (NYSE:VRT)

Potential Upside:2.95%

Number of Hedge Fund Holders: 112

Vertiv Holdings Co. (NYSE:VRT) is one of the best industrial stocks benefiting from the data center boom. On May 7, Citi increased its price target on Vertiv to $414 from $353 and maintained a Buy rating on the shares, according to a report by TheFly.

Citi emphasized the company’s multi-year visibility to sales and earnings growth, mainly caused by its robust AI-driven data center spending. Additionally, it expects Vertiv to raise its long-term organic growth outlook to range between 12%-24%.

For the first quarter of the year, Vertiv registered a 30% increase in net sales to $2.650 billion, driven by a 23% growth in organic sales.

Vertiv Chief Executive Officer Giordano Albertazzi said the company’s strong financial performance reflects its ability to meet the needs of its customers. He added:

“We’re seeing data center infrastructure requirements evolve significantly, with customers prioritizing optimized design, deployment speed, and operational efficiency – reshaping their approach to deployment. This quarter’s financial performance reflects our ability to meet customers at this critical moment with unique capabilities. Our investments in technology and capacity, combined with strategic acquisitions, are translating into market share gains as customers demand faster deployment, greater reliability, and comprehensive services. As infrastructure density increases and deployment timelines compress, we’re positioned to be the partner customers need to bring their most ambitious projects to life, at scale.”

According to 29 analyst ratings compiled by CNN, 79% rated Vertiv Buy, while 14 rated the stock Hold. Vertiv has a median price target of $350, a 2.95% upside from the current price of $33.97.

Vertiv Holdings Co. (NYSE:VRT) is engaged in the design, manufacturing, and servicing of critical digital infrastructure for data centers, communication networks, and commercial and industrial environments. The company specializes in thermal management, power distribution, and backup power systems, ensuring high efficiency and reliability in mission-critical operations.

9. Powell Industries, Inc. (NASDAQ:POWL)

Potential Upside: 3.43%

Number of Hedge Fund Holders: 30

Powell Industries, Inc. (NASDAQ:POWL) is one of the best industrial stocks benefiting from the data center boom. According to a report by TheFly on May 7, JPMorgan increased its price target on Powell to $360 from $310 while maintaining an Overweight rating on the shares, following the company’s second quarter earnings report.

The price target adjustment comes more than a week after JPMorgan initiated coverage on Powell on April 27, with an Overweight rating and $310 price target. JPMorgan earlier expressed optimism for the company’s growth given its exposure to megatrends such as AI, automation, and electrification.

On May 4, Powell reported a 6% rise in revenues for the second quarter of Fiscal Year 2026 to $296.6 million from $278.6 million in the prior year. The company attributed the growth to a 35% increase in revenues in the commercial & other industrial segment.

During the quarter, Powell said it was awarded a mega electric utility order and a mega data center order, each with a value exceeding $75 million. Additionally, subsequent to the end of the second quarter, the company was also awarded an additional mega data center order valued at $400 million, which is related to a behind-the-meter design of on-site generation assets.

Based on 6 analyst ratings compiled by CNN, Powell has an average price rating of $320, a 3.43% increase from the current price of $309.39.

Powell Industries, Inc. (NASDAQ:POWL) is engaged in the development, design, manufacture, and service of custom-engineered equipment and systems that distribute, control, and monitor the flow of electrical energy and provide protection to motors, transformers, and other electrically powered equipment. The company primarily serves the oil and gas, petrochemical, electric utility, and commercial and other industrial markets.

8. Prologis, Inc. (NYSE:PLD)

Potential Upside: 6.88%

Number of Hedge Fund Holders: 54

Prologis, Inc. (NYSE:PLD) is one of the best industrial stocks benefiting from the data center boom. According to a report by TheFly on May 8, BMO Capital raised the price target on Prologis to $162 from $137 and upgraded the stock’s rating to Outperform from Market Perform, as it cited the company’s exposure to data center demand.

BMO highlighted the company’s ability to benefit from the surging data center demand as both a developer and an industrial landlord, adding that data center suppliers now represent 10% of Prologis’ new leasing volume.

Last month, Prologis reported revenues of $2.3 billion for the first quarter of the year, higher than its $2.14 billion revenues in the same period a year ago. The company also reported net earnings per diluted share of $1.05 for the quarter, compared with $0.63 for the corresponding period in 2025.

Based on 24 analyst ratings compiled by CNN, 63% rated Prologis Buy, while 38% rated it Hold. As of May 8, Prologis has an average price target of $154, a 6.88% upside from the current price of $144.09.

Prologis, Inc. (NYSE:PLD) creates intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. The company leases modern logistics facilities to a diverse base of approximately 6,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

7. Cummins Inc. (NYSE:CMI)

Potential Upside: 7.13%

Number of Hedge Fund Holders: 67

Cummins Inc. (NYSE:CMI) is one of the best industrial stocks benefiting from the data center boom. On May 7, Citi increased its price target on Cummins to $770 from $710 while maintaining a Buy rating on the stock, following the company’s strong financial performance in the first quarter, according to a report by TheFly.

Citi attributed the upward price target adjustment to the higher estimates. On May 4, Cummins reported a 3% increase in revenues for the first quarter of the year to $8.4 billion.

The company also announced that it is raising its full-year 2026 revenue guidance to be up 8% to 11%. Cummins Chair and CEO Jennifer Rumsey said the higher 2026 outlook for revenue and profitability is driven by strengthened demand across several key markets. She added:

“We see North America on-highway markets improving, while demand for data center power generation across a range of our products continues to outpace expectations. Through the remainder of 2026, we are well-positioned to deliver strong financial performance, invest in future growth and return cash to shareholders.”

According to 26 analyst ratings compiled by CNN, Cummins has an average price target of $728, a 7.13% upside from the current price of $679.55.

Cummins Inc. (NYSE:CMI) is engaged in the design, manufacture, distribution, and service of a broad portfolio of power solutions. Its products range from diesel, natural gas, electric, and hybrid powertrains and powertrain-related components, among others.

6. Johnson Controls International plc (NYSE:JCI)

Potential Upside: 11.10%

Number of Hedge Fund Holders: 75

Johnson Controls International plc (NYSE:JCI) is one of the best industrial stocks benefiting from the data center boom. According to a report by TheFly on May 7, UBS boosted its price target on Johnson Controls to $170 from $160 while keeping a Buy rating on the stock following the release of the company’s quarterly earnings report.

UBS attributed the price target increase to the company’s potential to achieve meaningful positive revisions over the medium-term. On May 6, Johnson Controls reported an 8% increase in its sales for the second quarter of its fiscal year 2026 to $6.1 billion.

Johnson Controls Chief Executive Officer Joakim Weidemanis highlighted that the company was able to convert sustained demand into consistent growth. He added:

“Orders grew 30% and backlog reached a record $20 billion, reflecting strength in data centers and other high‑growth, technology‑driven operating environments where we differentiate. While we remain early in our Business System journey, we are encouraged by the momentum we are seeing across the organization. With a strong first‑half performance, we are raising our full‑year guidance and remain focused on delivering long‑term value for our customers and shareholders.”

Of the 26 analyst ratings compiled by CNN, 50% rated Johnson Controls Buy, while 38% assigned a Hold rating. As of May 8, the stock has a median price target of $155, an 11.10% upside from the current price of $139.52.

Johnson Controls International plc (NYSE:JCI) is engaged in thermal management, mission-critical building systems, energy efficiency, and decarbonization. The company helps customers use energy more productively, reduce carbon emissions, and operate with precision.

5. Carrier Global Corporation (NYSE:CARR)

Potential Upside: 12.97%

Number of Hedge Fund Holders: 59

Carrier Global Corporation (NYSE:CARR) is one of the best industrial stocks benefiting from the data center boom. On May 5, Argus Research raised its price target for Carrier Global to $75 from $72, while maintaining a Buy rating on the shares, according to a report by Investing.com.

The research firm attributed the higher price target to the valuation and opportunities from the company’s recent portfolio alignment. Argus highlighted the company’s potential for data center growth as well as the recent boost in share buybacks.

On April 30, Carrier Global reported a 500% increase in data center orders in the first quarter of the year, which resulted in a 35% jump in global Commercial HVAC orders.

Earlier, on April 29, the company announced that its venture group, Carrier Ventures, expanded its investment in ZutaCore, a provider of direct-to-chip, waterless liquid-cooling solutions.

Carrier Vice President for Global Data Centers, Christian Senu, emphasized that AI is reshaping data center architecture, with thermal management emerging as a key constraint on scaling. He added:

“This investment strengthens our ability to deliver advanced liquid cooling solutions that help customers scale high-density AI infrastructure efficiently and with improved energy performance for today’s chip thermal densities and next-generation architectures.”

Based on 29 analyst ratings compiled by CNN, Carrier Global has an average price rating of $75.50, a 12.97% increase from the current price of $66.83.

Carrier Global Corporation (NYSE:CARR) is a global leader in intelligent climate and energy solutions. It offers cutting-edge advancements in climate solutions, including temperature control and air quality.

4. Eaton Corporation plc (NYSE:ETN)

Potential Upside: 17.31%

Number of Hedge Fund Holders: 87

Eaton Corporation plc (NYSE:ETN) is one of the best industrial stocks benefiting from the data center boom. On May 7, Keybanc analyst Jeffrey Hammond maintained an Overweight rating on Eaton and increased its price target to $480 from $420, according to a report by TheFly.

While acknowledging near-term margin pressure, the analyst said it is impressed by the robust underlying demand trends in the electrical sector, adding that margins are poised to improve moving forward.

Earlier on May 5, Eaton reported a 17% rise in sales in the first quarter of the year to $7.5 billion, including a 10% increase in organic sales growth. The company said its 12-month rolling average order acceleration in Electrical Americas surged 42%, driven by the momentum in data centers as well as the growth of electrical global and aerospace orders.

Out of 33 analyst ratings compiled by CNN, 70% rated Eaton Buy, while 27% rated it Hold. As of May 8, the stock has a median price target of $471, a 17.31% upside from the current price of $401.51.

Eaton Corporation plc (NYSE:ETN) is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. It makes products for the data center, utility, industrial, commercial, and institutional, machine building, residential, aerospace, and mobility markets.

3. GE Vernova Inc. (NYSE:GEV)

Potential Upside: 20.17%

Number of Hedge Fund Holders:115

GE Vernova Inc. (NYSE:GEV) is one of the best industrial stocks benefiting from the data center boom. On May 5, GE Vernova and Blue Energy announced their collaboration for the design and development of a 2.5 GW nuclear and natural gas plant in Texas.

Under the partnership, the nuclear power plant will be designed and developed using GE Vernova Hitachi Nuclear Energy’s (GVH) BWRX-300 small modular reactor (SMR) at Blue Energy’s first planned site in Texas, which is still subject to a final investment decision in 2027. The companies said they have signed a slot reservation agreement for site delivery in 2029 of two GE Vernova 7HA.02 gas turbines for early site energization.

GE Vernova Power Segment CEO Eric Gray expressed optimism for the collaboration with Blue Energy. He added:

“Combining our industry-leading HA gas turbines with the BWRX-300, the only small modular nuclear reactor under construction in the Western world today, provides an effective solution aimed to meet the demands of rapid AI expansion in the United States while decreasing time to power. Our collaboration with Blue Energy on this project exemplifies the innovative approaches required to help deliver the scale of electricity needed for this extraordinary demand.”

Based on 39 analyst ratings compiled by CNN, GE Vernova has an average price target of $1,250, a 20.17% upside from the current price of $1,040.15.

GE Vernova Inc. (NYSE:GEV) is a global energy company. It operates segments such as Power, Wind, and Electrification segments and is supported by its accelerator businesses.

2. Ecolab Inc. (NYSE:ECL)

Potential Upside: 27.84%

Number of Hedge Fund Holders:62

Ecolab Inc. (NYSE:ECL) is one of the best industrial stocks benefiting from the data center boom. On May 7, the company declared a regular quarterly cash dividend of $0.73 per common share.

The dividend covers shareholders of record at the close of business on June 16, 2026, and will be paid on July 15, 2026. Ecolab has paid cash dividends on its common stock for 89 consecutive years.

On April 28, Ecolab reported a 13% rise in adjusted diluted EPS for the first quarter of the year to $1.70. The company attributed the growth to continued strong value pricing, accelerated volume growth, and solid expansion in the operating income margin.

For the second quarter of the year, Ecolab is projecting a 7% to 12% growth in adjusted diluted EPS in the $2.02 to $2.12 range, reflecting a short transition period as benefits from the energy surcharge progressively build to offset higher commodity costs.

“As we move into the second quarter, we expect a short transition period as we absorb rising commodity costs, while the benefits from the energy surcharge progressively build. Exiting the second quarter, we expect accelerating pricing to cover the dollar impact from higher commodity costs, with gross margin stabilizing in the second half of the year. With this, along with strong new business wins and improved productivity, we expect Ecolab’s performance to strengthen in the second half of the year and are reiterating our expectation to deliver 12-15% adjusted EPS growth in 2026, excluding the impact of the recently announced acquisition of CoolIT Systems,” Ecolab chairman, president and chief executive officer Christophe Beck said.

“The pending acquisition of CoolIT is an important strategic step for Ecolab, further strengthening our Global High-Tech growth engine and extending our leadership in high-performance cooling for data centers. Our combined end-to-end cooling technologies enable leading hyperscale and colocation data centers to put more power towards computing, with less water and energy consumption. Overall, we are confident in our team’s ability to execute and deliver for customers and shareholders, supported by the strong momentum of our growth engines and solid performance in our core businesses,” he added.

Based on 29 analyst ratings compiled by CNN, Ecolab has an average price target of $325, a 27.84% upside from the current price of $254.22.

Ecolab Inc. (NYSE:ECL) is a global leader in water, hygiene, and infection prevention solutions and services. The company’s offerings integrate science-based solutions, data-driven insights, AI technology, and world-class service.

1. SPX Technologies, Inc. (NYSE:SPXC)

Potential Upside: 31.88%

Number of Hedge Fund Holders: 32

SPX Technologies, Inc. (NYSE:SPXC) is one of the best industrial stocks benefiting from the data center boom. On May 7, TheFly reported that JPMorgan increased its price target on SPX Technologies while maintaining an overweight rating on the stock following the company’s first-quarter earnings report.

Earlier, on May 4, Truist also raised its price target on SPX Technologies to $261 from $251 while reiterating a Buy rating on the stock, citing the company’s positive Q1 results.

In the first quarter of the year, SPX Technologies registered a 17.4% increase in revenues to $566.8 million while Adjusted EBITDA surged 22.9% to $126.1 million. SPX Technologies President and CEO Gene Lowe said the company continues to see healthy demand across its key end markets. He added:

“We continue to make meaningful progress on our investments in production capacity expansions that position us for sustained long-term growth in attractive end markets, including supporting the strong demand for our data center solutions. We are optimistic about the strength of customer demand and our operational momentum, and we remain well-positioned to navigate a changing tariff environment. With a solid demand backdrop and a robust pipeline of attractive acquisition opportunities, I remain highly confident in our ability to continue driving value for years to come.”

Out of 14 analyst ratings compiled by CNN, 93% rated SPX Technologies Buy, while 7% rated it Hold. As of May 8, the stock has a median price target of $267.50, a 31.88% upside from the current price of $202.84.

SPX Technologies, Inc. (NYSE:SPXC) is a diversified, global supplier of highly engineered products and technologies. The company is a leader in the HVAC and detection & measurement industries.

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