5 Best Grid Modernization Stocks to Buy for AI Infrastructure

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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.

While we acknowledge the potential of ETN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ETN and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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