15 Best Data Center Stocks to Buy and Hold for the Next Decade

In this article, we will look at the 15 Best Data Center Stocks to Buy and Hold for the Next Decade.

Data center stocks are getting more attention as the AI buildout moves beyond the chip trade and into the wider infrastructure stack. The theme includes cloud infrastructure, servers, storage, optical networking, custom semiconductors, backup power, cooling, and the mechanical and electrical systems needed to keep facilities running. For investors, the question is not only which companies benefit from the current AI cycle, but which parts of the stack remain essential as demand keeps scaling.

Fidelity says it sees “no prospect of flagging AI spending,” with “graphics processing units, high-speed memory, and data centers” expected to remain integral in 2026 and beyond. That points to a broader investment map than just the biggest chip names. BlackRock says the AI buildout is revealing “capacity constraints in many key inputs,” with “power being one of the most strained,” and estimates “approximately 148 gigawatts (GW) of additional power capacity” will be needed by the end of the decade to satisfy data center demand. Janus Henderson adds that “Supply at nearly every layer of the stack, from memory to compute to power, still cannot keep pace with demand,” while “Optical connectivity and advanced cooling systems face further strain.” In summary, the bottlenecks are spreading across the full data center supply chain.

Against this backdrop, the best data center stocks to buy and hold for the next decade are not limited to hyperscalers or semiconductor leaders. The opportunity also runs through networking, storage, power, cooling, engineering, and equipment companies that help turn AI demand into working infrastructure. With that in mind, let’s take a look at the 15 Best Data Center Stocks to Buy and Hold for the Next Decade.

Our Methodology

We used the Finviz screener to identify data center stocks with expected EPS growth of at least 30% over the next 5 years. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.

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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

15. Cummins Inc. (NYSE:CMI)

On July 2, 2026, Truist raised the firm’s price target on Cummins Inc. (NYSE:CMI) to $901 from $815 and kept a Buy rating on the shares. Truist adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. The firm sees a positive setup for Q2 earnings reports across the sector, with demand trends remaining strong and supported by secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.

On June 17, Wells Fargo raised the firm’s price target on Cummins to $874 from $794 and kept an Overweight rating on the shares. Wells Fargo cited a behind-the-meter prime power award with Circe Energy for West Texas HPC data centers for Cummins’ 78L and 60L products, over a year earlier than expected. Wells Fargo also sees additional opportunities in Alberta as outlined at its conference.

On June 8, UBS upgraded Cummins to Buy from Neutral with a price target of $850, up from $565. UBS cited the improving truck market for the upgrade, along with double-digit growth in Cummins’ power business, a supportive truck outlook, and the rollout of new engines with more content. UBS said consensus estimates underappreciate Cummins’s potential upside from power and a more supportive truck cycle.

Cummins Inc. (NYSE:CMI) offers various power solutions worldwide.

14. Hewlett Packard Enterprise Company (NYSE:HPE)

On July 1, 2026, ScanSource (SCSC) announced an expanded partnership with Hewlett Packard Enterprise Company (NYSE:HPE), including HPE Juniper Networking. The expanded HPE Networking portfolio is meant to help ScanSource connect networking and security solutions for partners, with improved network performance, simplified operations, and increased efficiency for end users. ScanSource Launch Point will also support HPE’s go-to-market efforts through tailored channel programs, marketing strategies, sales expertise, and market-building capabilities. Mark Morgan, President, Specialty Technologies at ScanSource, said the next phase builds on a “strong foundation,” referring to the company’s channel relationship and the addition of HPE Juniper Networking’s solutions to ScanSource’s line card.

On June 17, HPE announced that Vultr selected HPE and NVIDIA (NVDA) for large-scale AI datacenter deployments supporting enterprise demand for private cloud and AI workloads. Vultr selected the NVIDIA GB300 NVL72 by HPE, connected with NVIDIA Spectrum-X Ethernet networking, to power next-generation AI infrastructure environments for enterprise-scale AI workloads. The deployments combine HPE’s AI factory capabilities with NVIDIA accelerated computing, networking, and software for a scalable AI platform optimized for high-performance model training and inference.

Also on June 17, HPE announced “major” advancements in its self-driving networking strategy across AI factories, data centers, and the enterprise edge. The updates include new AI data center networking, routing, Agentic AIOps, and security innovations designed to simplify operations and improve performance across distributed AI-driven environments. HPE also introduced new HPE Juniper Networking QFX Switches optimized for inferencing and scale-up architectures, deeper integration of HPE Juniper Networking data center switching and operations into HPE AI Data Center Solution, and a unified AI-native SASE platform.

Hewlett Packard Enterprise Company (NYSE:HPE) develops intelligent solutions in the United States, the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and internationally.

13. AECOM (NYSE:ACM)

On July 2, 2026, Truist lowered the firm’s price target on AECOM (NYSE:ACM) to $102 from $109 and kept a Buy rating on the shares. Truist adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. The firm sees a positive setup for Q2 earnings reports across the sector, with demand trends remaining strong and supported by secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.

On June 22, AECOM announced its appointment to the Government Commercial Agency Construction Professional Services 2 Framework. The framework has a total value of $4.7B and serves as a primary route for the public sector in the United Kingdom to procure construction professional and technical services. AECOM secured a position on nine lots in CPS2, up from five in the previous framework, covering areas such as general infrastructure, project management, defense, international, nuclear energy, and flood risk & asset management.

On June 8, AECOM said it was selected to continue providing architecture and engineering services to the U.S. Department of Homeland Security for critical infrastructure modernization initiatives. Under the contract, AECOM will support mission-critical renovations and upgrades for government facilities across all 50 U.S. states, Puerto Rico, Guam, and the U.S. Virgin Islands. Its scope includes A/E design, site assessments, studies, facilities planning, alternatives analysis, environmental services, and design-build documentation.

AECOM (NYSE:ACM) provides professional infrastructure consulting services for governments, businesses, and organizations internationally.

12. Jacobs Solutions Inc. (NYSE:J)

On July 2, 2026, Jacobs Solutions Inc. (NYSE:J) was selected by Tilt Renewables as Owner’s Engineer for its 288-megawatt Palmer Wind Farm near Adelaide, South Australia. The project will feature 407.2MW wind turbine generators, connecting to the grid at 275 kilovolts through two new substations and a transmission line to the existing Tungkillo switching station. Jacobs will provide delivery phase services, including design and documentation review, construction monitoring, grid connection support, and site inspections. Construction will begin in 2026 and is expected to be completed in 2028.

Also on July 2, Truist analyst Jamie Cook lowered the firm’s price target on Jacobs to $149 from $150 and kept a Hold rating on the shares. Truist adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Cook said the firm sees a positive setup for Q2 earnings reports across the sector, with demand trends remaining strong and supported by secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.

On June 30, Jacobs was selected by the Orange County Transportation Authority to provide construction management services for two major highway improvement projects in Orange County, California. The SR-91 Improvement Project between La Palma and SR-55 will add a new eastbound general-purpose lane, widen bridges, and reconstruct interchanges. Jacobs will also provide construction management services for the I-5 Improvement Project between I-405 and Yale Avenue.

Jacobs Solutions Inc. (NYSE:J) engages in infrastructure and advanced facilities, and consulting businesses in the United States, Europe, Canada, India, Asia, Australia, New Zealand, the Middle East, and Africa.

11. MasTec, Inc. (NYSE:MTZ)

On July 2, 2026, Truist raised the firm’s price target on MasTec, Inc. (NYSE:MTZ) to $550 from $518 and kept a Buy rating on the shares. Truist adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. The firm sees a positive setup for Q2 earnings reports across the sector, with demand trends remaining strong and supported by secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.

On July 1, MasTec announced that Manny Miranda joined its Board of Directors as a Class II Director. Across Miranda’s career at Florida Power & Light and Florida City Gas, Miranda held leadership responsibilities spanning transmission, substations, distribution, engineering, construction, operations, maintenance, customer service, system reliability, storm hardening, and commercial operations.

On June 18, Baird said the recent weakness in MasTec, Inc. (NYSE:MTZ) shares is a buying opportunity as Hauke raised year-over-year estimates. Hauke maintained an Outperform rating and $473 price target on MasTec shares.

MasTec, Inc. (NYSE:MTZ) provides engineering, building, installation, maintenance, and upgrade services for communications, energy, utility, and other infrastructure primarily in the United States and Canada.

10. Primoris Services Corporation (NYSE:PRIM)

On June 29, 2026, JPMorgan analyst Mark Strouse upgraded Primoris Services Corporation (NYSE:PRIM) to Overweight from Neutral with a price target of $116, up from $105. Strouse said the shares are trading at a significant discount to peers while the non-renewables parts of the business continue to perform well. JPMorgan said “it is time for investors to take a step back” and view Primoris through a sum-of-the-parts perspective. The firm sees valuation upside even if one assumes additional cost overruns in the renewables segment, which JPMorgan said is unlikely.

On June 30, Fermi (FRMI) announced a major agreement with Primoris Energy Services, part of Primoris, to engineer and construct the balance of plant for the first six SGT-800 gas turbines anchoring Fermi’s phase one power buildout. The agreement covers the engineering, procurement, and construction scope for the simple cycle phase of Fermi’s Siemens 6×1 combined cycle generating facility, next to the Project Matador hyperscale computing and data center campus in Amarillo, Texas.

On June 25, Cantor Fitzgerald lowered the firm’s price target on Primoris to $100 from $124 and kept a Neutral rating on the shares. Cantor Fitzgerald said Primoris Services shares rose about 9% after its webcast as investors took some comfort from management’s view that renewable project issues remain confined to six identified projects, with completion timelines staged from near-term through year-end. Cantor Fitzgerald said the stock is still a “prove-it” story until execution is fully demonstrated.

Primoris Services Corporation (NYSE:PRIM) provides infrastructure services primarily in the United States and Canada.

9. Tetra Tech, Inc. (NASDAQ:TTEK)

On June 25, 2026, Tetra Tech, Inc. (NASDAQ:TTEK) announced that the U.S. Army Corps of Engineers Mobile District selected the company for a $49M multiple-award contract. The contract covers architect-engineer design and technical services for inland and coastal navigation and water resources infrastructure projects. Under the 5-year contract, Tetra Tech’s engineers, scientists, and technical specialists will provide A-E services for civil works infrastructure in the Mobile District’s area of responsibility in the Southeastern United States.

On June 24, Tetra Tech said California’s Encina Wastewater Authority selected the company for a single-award contract to deliver digital automation and operational technology network solutions for the CLEAR project. CEO Roger Argus said Tetra Tech has been Encina Wastewater Authority’s operational technology and systems integrator since 2017, citing the importance of “secure, optimized OT systems” for wastewater treatment and a “reliable, resilient solution” for managing energy resources.

On June 16, Tetra Tech announced that Scotland Excel selected the company to support critical infrastructure projects and environmental resiliency across Scotland. Argus said Tetra Tech has provided engineering design services to Scotland Excel since 2013 and will continue working with local councils to deliver “resilient infrastructure and environmental outcomes” for communities across Scotland.

Tetra Tech, Inc. (NASDAQ:TTEK) provides consulting and engineering services focusing on water, environment, and sustainable infrastructure in the United States and internationally.

8. nVent Electric plc (NYSE:NVT)

On July 1, 2026, Goldman Sachs analysts removed nVent Electric plc (NYSE:NVT) from the firm’s US Conviction List as part of its monthly update.

On June 10, Bernstein initiated coverage of nVent Electric with an Outperform rating and $218 price target. Bernstein said the market is “mispricing” the company’s data center heavy systems protection business. Bernstein also said nVent’s coolant distribution unit technology positions the company as the liquid cooling experts going forward.

Also on June 10, nVent Electric announced the appointment of Nitin Jain as executive VP and chief strategy officer, and Joe Stark as executive VP and chief revenue officer. Both leaders will report to the chair and CEO Beth Wozniak. Jain has served as nVent’s senior VP of strategy and business development since 2022, while Stark has been nVent’s senior VP of nVent global sales since 2020.

nVent Electric plc (NYSE:NVT) designs, manufactures, markets, installs, and services electrical connection and protection solutions in America, Europe, the Middle East, India, Africa, the Asia Pacific, and internationally.

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

On July 2, 2026, Truist raised the firm’s price target on SPX Technologies, Inc. (NYSE:SPXC) to $295 from $261 previously and kept a Buy rating on the shares. Truist adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. The firm sees a positive setup for Q2 earnings reports across the sector, with demand trends remaining strong and supported by secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.

On June 22, SPX Technologies, Inc. (NYSE:SPXC) announced a planned leadership transition within its Detection & Measurement segment. John Swann plans to retire in January 2027. As part of the succession plan, Eric Kaled will succeed Swann as leader of the D&M segment, effective on August 31, 2026.

SPX Technologies, Inc. (NYSE:SPXC) supplies engineered solutions serving the heating, ventilation, and cooling, and detection and measurement markets in the United States, Canada, China, the United Kingdom, and internationally.

6. Digital Realty Trust, Inc. (NYSE:DLR)

On June 30, 2026, Digital Realty Trust, Inc. (NYSE:DLR) and Blackstone (BX) announced that Digital Realty agreed to purchase from Blackstone-affiliated funds a stake in three fully leased Northern Virginia data centers with 288 megawatts of total IT capacity. The assets were valued at $7.8B, reflecting an expected initial stabilized capitalization rate of over 6.5%. Digital Realty will pay Blackstone $3.5B for its blended 64% equity interest, consisting of $1.2B of cash and $2.3B in Digital Realty shares, based on the company’s last reported sale price on the New York Stock Exchange on June 29.

The portfolio includes two data centers in Manassas and one on the Digital Dulles campus in Sterling, each with 96 megawatts of IT capacity and 100% leased to three distinct investment-grade hyperscale customers. The purchase is expected to be completed on June 30, subject to customary closing conditions, with two data centers expected to stabilize in the first half of 2027 and the third in the first half of 2028.

On July 1, Barclays raised the firm’s price target on Digital Realty to $197 from $189 and kept an Equal Weight rating on the shares. Barclays raised targets in the communications infrastructure real estate investment trust group, citing higher growth expectations than previously modeled, as companies benefit from ongoing hyperscale demand and accelerating enterprise AI demand.

Digital Realty Trust, Inc. (NYSE:DLR) provides data center, colocation, and interconnection solutions.

5. Parker-Hannifin Corporation (NYSE:PH)

On July 2, 2026, Truist analyst Jamie Cook raised the firm’s price target on Parker-Hannifin Corporation (NYSE:PH) to $1,269 from $1,147 and kept a Buy rating on the shares. Cook adjusted estimates and targets in the machinery, infrastructure services, and multi-industry group as part of a Q2 preview. Cook said Truist sees a positive setup for Q2 earnings reports across the sector, with demand trends remaining strong and supported by secular growth tailwinds in power, data center, aerospace and defense, and infrastructure.

On June 30, Deutsche Bank analyst Nicole Deblase placed a “Catalyst call: Buy” on shares of Parker-Hannifin as a short-term investment idea. Deblase said the stock’s year-to-date underperformance will continue its recent reversal, as investors increasingly seek out short-cycle industrial exposure.

On June 10, Bernstein analyst Varun Govindaraj initiated coverage of Parker-Hannifin with an Outperform rating and $1,026 price target. Govindaraj cited Parker-Hannifin’s history of “operational excellence” and its continued shift to higher margin, higher growth markets and stickier revenue streams as reasons for the stock’s premium multiple.

Parker-Hannifin Corporation (NYSE:PH) manufactures and sells motion and control technologies and systems for aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets in North America, Europe, Asia Pacific, and Latin America.

4. Legence Corp. (NASDAQ:LGN)

On June 22, 2026, Barclays raised the firm’s price target on Legence Corp. (NASDAQ:LGN) to $80 from $60 and kept an Equal Weight rating on the shares. Barclays said May machinery and construction data reinforced its view of strong dollar activity but weak volumes. The firm noted that growth remains concentrated in AI, while infrastructure is “supportive but normalizing.”

A month earlier, Tigress Financial raised the firm’s price target on Legence to $125 from $85 and kept a Buy rating on the shares. Tigress cited the company’s “accelerating growth runway,” pointing to a combination of near-term execution and long-duration, contractually supported demand across structurally advantaged end markets.

Similarly, BofA analyst Sherif El-Sabbahy raised the firm’s price target on Legence to $105 from $90 and kept a Buy rating on the shares after the company delivered a “strong Q1” and backlog expanded to $5.4B from $3.7B in Q4. Following the report, BofA raised adjusted EBITDA estimates 11% and 19% for 2026 and 2027, respectively.

Legence Corp. (NASDAQ:LGN) provides engineering, installation, and maintenance services for mission-critical systems in buildings in the United States.

3. Power Integrations, Inc. (NASDAQ:POWI)

On June 24, 2026, Stifel raised the firm’s price target on Power Integrations, Inc. (NASDAQ:POWI) to $95 from $82 and kept a Buy rating on the shares. Stifel said its earlier view that analog players were poised for a potential breakout in calendar year 2026 “has now been firmly validated,” citing beat-and-raise quarters from Astera Labs (ALAB), Credo Technology (CRDO), and Marvell (MRVL) in calendar Q1. Stifel also said it continues to view episodic weakness in AI-levered names as “a buying opportunity” for long-term investors focused on clear technological innovators.

On June 10, Needham initiated coverage of Power Integrations with a Buy rating and $90 price target. Needham cited the combination of a leading high-power GaN portfolio and the new management team’s strategic priorities to accelerate product development and open new high-growth markets as potential tailwinds for long-term, sustainable growth.

A month earlier, Susquehanna raised the firm’s price target on Power Integrations to $85 from $70 and kept a Positive rating on the shares. Susquehanna updated its model following positive Q1 results and said it looks forward to seeing Power Integrations execute on its growing AI DC opportunity.

Power Integrations, Inc. (NASDAQ:POWI) designs, develops, manufactures, and markets analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion.

2. AXT, Inc. (NASDAQ:AXTI)

On June 23, 2026, AXT, Inc. (NASDAQ:AXTI) announced that Tracy Liu was appointed to its Board of Directors, effective June 17, 2026. The board expanded to five directors from four. Liu brings more than 30 years of business advisory, tax strategy, and accounting experience, including 10 years with Big Four public accounting firms and more than 20 years advising public and private companies.

On June 25, Northland reiterated an Outperform rating and recently increased its price target on AXT to $125 amid a sharp pullback in the shares. Northland also cited AXT’s “very positive” appearance at the firm’s NCM Growth Conference.

On June 18, AXT disclosed that its subsidiary, Beijing Tongmei Xtal Technology, entered into a long-term supply agreement with Nanjing Casela Technologies. The agreement reserves production capacity and raw-material allocation for Casela in exchange for Casela’s commitment to purchase a fixed aggregate quantity of indium phosphide wafer substrates from January 1, 2027, through December 31, 2027. In 2027, Casela is committed to purchasing an agreed quantity of InP substrate wafers for a total price of $25.4M, with deliveries on a monthly schedule.

AXT, Inc. (NASDAQ:AXTI) designs, develops, manufactures, and distributes compound and single-element semiconductor substrates.

1. Comfort Systems USA, Inc. (NYSE:FIX)

On July 1, 2026, William Blair analysts added Comfort Systems USA, Inc. (NYSE:FIX) to the firm’s Analyst Conviction List as part of its monthly update.

On June 23, Comfort Systems USA, Inc. (NYSE:FIX) announced that Craig Sasser, currently Regional Vice President, Atlantic Region, will be appointed COO, effective July 1. Trent McKenna will continue to serve as President of the company. Comfort Systems also said Briston Blair will transition from Senior Vice President, Innovation & Strategy to Chief Strategy & Innovation Officer, effective July 1.

On June 8, UBS raised the firm’s price target on Comfort Systems USA, Inc. (NYSE:FIX) to $2,125 from $1,992 and kept a Buy rating on the shares after meeting with management. UBS said company comments suggest the demand backdrop remains robust, led by data centers, with opportunities in semiconductors, healthcare, and education. UBS also sees evidence of Comfort’s current strong environment persisting through 2027.

Comfort Systems USA, Inc. (NYSE:FIX) provides mechanical and electrical installation, renovation, maintenance, repair, and replacement services for the mechanical and electrical services industry in the United States.

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