In this article, we look at the 10 Best Stocks to Buy for Next-Gen Data Centers.
Next-generation data centers are becoming one of the clearest physical bottlenecks behind the AI buildout. The shift is no longer just about adding more cloud capacity. AI workloads are pushing operators toward denser server racks, more advanced GPUs and custom accelerators, high-bandwidth memory, faster networking, liquid cooling, and more resilient power systems. The International Energy Agency expects global data center electricity consumption to roughly double from 485 TWh in 2025 to about 950 TWh by 2030, with AI-focused data centers growing even faster over the period.
The investment case has also widened beyond chipmakers. Reuters reported in April 2026 that the four largest U.S. cloud companies were on track to spend around $600 billion on AI this year, while Schneider Electric’s recent results showed how demand is flowing into power equipment, server racks, and cooling systems. At the same time, U.S. electricity use is expected to reach record highs in 2026 and 2027, partly due to AI data centers and crypto operations. Against that backdrop, the best next-generation data center stocks are not only the companies making accelerators, but also those supplying the memory, networking, electrical, thermal, and server infrastructure needed to keep the AI factory running.
A rendering of Applied Digital’s Polaris Forge 2 data center. Photo from Applied Digital’s website
Methodology
For this article, we reviewed financial media coverage of companies tied to next-generation data center infrastructure, including AI accelerators, custom chips, networking, high-bandwidth memory, servers, power systems, and cooling solutions. We shortlisted stocks that appeared repeatedly across these sources and ranked them based on frequency of mention, relevance to the data center buildout theme, and recent business momentum.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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).
10. Dell Technologies Inc. (NYSE:DELL)
Dell Technologies Inc. (NYSE:DELL) is one of the best stocks to buy for next-gen data centers. On April 22, Boost Run LLC announced a $1.44 billion purchase agreement with Dell Technologies to support enterprise demand for AI compute and storage infrastructure. The agreement is intended to provide Boost Run with certainty regarding its hardware and software as it scales capacity across its colocation footprint and fulfills long-term client commitments. Boost Run is a “leading provider of scalable cloud infrastructure purpose-built for enterprise AI and high-performance computing workloads.”
The deal fits Dell’s role as a practical supplier of AI infrastructure rather than only a traditional server vendor. Boost Run said the expanded partnership also includes coordinated infrastructure deployment programs and a deeper financing relationship with Dell Financial Services, helping align capital deployment with customer contract timelines. Dell’s May 7 update with AMD adds to that angle: its PowerEdge XE7745 and R7725 servers will support AMD Instinct MI350P PCIe GPUs starting in July 2026, allowing enterprises to run generative and agentic AI inside existing data center infrastructure without a redesign.
Dell Technologies Inc. (NYSE:DELL) provides servers, storage, networking, PCs, software, and infrastructure solutions for enterprises, cloud providers, governments, and other customers.
9. Eaton Corporation plc (NYSE:ETN)
Eaton Corporation plc (NYSE:ETN) is one of the best stocks to buy for next-gen data centers. On May 5, the company reported record first-quarter 2026 sales of $7.5 billion, up 17% from the prior-year period, while organic sales rose 10% and its Electrical Americas segment posted record sales of $3.6 billion, up 20% year over year. The strongest data-center signal came from orders: Eaton said Electrical Americas’ twelve-month rolling average orders rose 42% organically, driven by data-center momentum, while Electrical sector backlog increased 48% from the prior year.
The update supports Eaton’s role in the physical infrastructure layer of AI data centers, where power distribution, grid connection, cooling, and modular deployment are becoming more important as AI facilities push toward higher density and faster buildout timelines. Eaton said Electrical Americas data-center orders were up approximately 240% in Q1, while data-center revenue rose about 50% from the prior-year period. The company also highlighted the closing of the Boyd Thermal acquisition, which adds liquid-cooling capabilities, and its collaboration with NVIDIA on the Eaton Beam Rubin DSX platform for grid-to-chip AI factory infrastructure.
Eaton Corporation plc (NYSE:ETN) provides intelligent power management products and systems for data center, utility, industrial, commercial, aerospace, residential, and mobility markets.
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