In this article, we will list the 5 Best Grid Modernization Stocks to Buy for AI Infrastructure. Please visit 10 Best Grid Modernization Stocks to Buy for AI Infrastructure if you’d like to see an extended list.
We selected 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.
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. (NASDAQ:AEP) 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. (NASDAQ:AEP) 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. (NASDAQ:AEP) 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. (NYSE:PWR) 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. (NYSE:PWR) 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. (NYSE:GEV) 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. (NYSE:GEV) in the power-equipment layer behind data-center growth, where grid capacity, generation availability, and electrification hardware are becoming key constraints.
GE Vernova Inc. (NYSE:GEV) 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.
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.
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