In this article, we will look at the 7 Best Data Center Cooling Companies to Invest In.
Data center cooling stocks are getting a closer look because AI infrastructure is turning heat management into a much bigger part of the investment story. It is no longer enough to talk only about chips, servers, and power. As more AI workloads run around the clock, the strain on energy, water, and facility design is becoming harder to ignore. Wellington puts it plainly, saying “AI’s growing computational demands are raising concerns about energy and water resource strains,” and notes that operators are already pursuing efficiencies such as “liquid cooling and compute optimization.” In other words, cooling is starting to look less like a supporting detail and more like a bottleneck the industry has to solve.
T. Rowe Price says companies that help manage data center infrastructure, including “cooling solutions to help handle thermal loads” and power systems that “help data centers run more efficiently will become ever more important.” Janus Henderson goes a step further, arguing that “cooling is an equally important aspect” and that data centers require “enhanced cooling capacity,” with “liquid cooling likely to become the standard going forward.”
Against that backdrop, cooling companies deserve a closer look, including those supplying the thermal-management systems, liquid-cooling technologies, and efficiency solutions that data center operators increasingly need to keep expansion on track. That brings us to the 7 Best Data Center Cooling Companies to Invest In.
Our Methodology
We used the Finviz screener to identify data center cooling stocks 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. 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).
7. nVent Electric plc (NYSE:NVT)
On April 13, 2026, Citi analyst Vladimir Bystricky raised the price target on nVent Electric plc (NYSE:NVT) to $152 from $133 and maintained a Buy rating as part of a broader Q1 preview across industrial names. The firm said that gradually improving industrial trends remain intact and should support solid first-quarter results across much of the sector.
Also on April 13, 2026, Evercore ISI analyst Alexander Virgo initiated coverage of nVent Electric plc (NYSE:NVT) with an Outperform rating and a $160 price target. The firm highlighted the company’s “best-in-class” organic growth, pricing power, and operational execution, and said those factors could support 25% annual earnings growth through 2028. Evercore also said nVent’s exposure to data centers and utilities is supported by strong backlog visibility.
Earlier in April, Barclays analyst Julian Mitchell raised the price target on nVent Electric plc (NYSE:NVT) to $150 from $141 and maintained an Overweight rating as part of a broader Q1 preview for multi-industry companies. The firm said demand questions remain across the sector, though expectations have become more balanced.
nVent Electric plc (NYSE:NVT) designs, manufactures, and services electrical connection and protection solutions, including products used in data centers and power infrastructure.
6. Trane Technologies plc (NYSE:TT)
On April 21, 2026, KeyBanc raised its price target on Trane Technologies plc (NYSE:TT) to $525 from $500 and maintained an Overweight rating following its quarterly channel checks. The firm said demand appeared to slow early in Q1 but improved throughout the quarter and into April. While demand trends looked healthier than initially expected, KeyBanc said tariff-related concerns are likely to dominate earnings discussions and influence stock reactions.
On April 13, 2026, Evercore ISI analyst Alexander Virgo initiated coverage of Trane Technologies plc (NYSE:TT) with an Outperform rating and a $535 price target. The firm highlighted Trane’s “best-in-class” commercial HVAC platform and said its secular growth profile is supported by backlog conversion, monetization of its installed base, and consistent execution. Evercore expects 8% annual organic growth and double-digit earnings growth through 2028.
Last month, Trane completed required laboratory testing for its rooftop units in the 10–14 ton and 15–25 ton capacity ranges as part of the U.S. Department of Energy’s Commercial Building HVAC Technology Challenge. The company also received additional recognition for its smaller rooftop unit after exceeding optional heating capacity and efficiency requirements for improved cold climate performance. Trane has now advanced to the next phase of the program, which includes field trial installations in Illinois and Wisconsin.
Trane Technologies plc (NYSE:TT) designs, manufactures, sells, and services heating, ventilation, air conditioning, and transport refrigeration solutions.
5. Johnson Controls International plc (NYSE:JCI)
On April 13, 2026, Citi raised its price target on Johnson Controls International plc (NYSE:JCI) to $150 from $139 previously and maintained a Neutral rating on the shares as part of a broader Q1 preview across industrial companies. The firm said gradually improving industrial trends remain intact and should support solid first-quarter earnings across much of the sector.
Meanwhile, Evercore ISI initiated coverage of Johnson Controls International plc (NYSE:JCI) with an In Line rating and a $155 price target on the shares. The firm said the stock’s valuation already reflects much of the company’s secular growth positioning, leaving a more balanced risk-reward profile at current levels.
Earlier in April, Goldman Sachs raised its price target on Johnson Controls International plc (NYSE:JCI) to $158 from $154 and maintained a Buy rating as part of a broader Q1 preview for multi-industry names. The firm cited accelerating organic growth, self-help opportunities, and potential portfolio actions as key drivers.
Johnson Controls International plc (NYSE:JCI) designs, manufactures, installs, and services building products and systems, including HVAC, building management, refrigeration, fire detection, and digital solutions.
4. Carrier Global Corporation (NYSE:CARR)
On April 13, 2026, Evercore ISI initiated coverage of Carrier Global Corporation (NYSE:CARR) with an Outperform rating and a $75 price target. The firm highlighted the company’s portfolio transformation and exposure to secular growth markets such as electrification, data centers, and aftermarket services. Evercore said Carrier has a “clear pathway” to margin expansion and offers relatively inexpensive exposure to long-term growth trends.
Earlier in April, Barclays analyst Julian Mitchell lowered the price target on Carrier Global Corporation to $67 from $72 and maintained an Overweight rating as part of a broader Q1 preview across multi-industry companies. The firm said demand uncertainty remains across the sector, though expectations have become more balanced.
Last month, Carrier announced that Carrier Ventures made a strategic investment in Heat Geek, a U.K.-based startup focused on accelerating residential heat pump adoption across Europe. Heat Geek operates a digital platform that connects homeowners with certified installers and uses AI-powered tools to design efficient heat pump systems, while also supporting quoting, financing, grants, and installation.
Carrier Global Corporation provides heating, cooling, ventilation, and energy solutions for residential and commercial customers across global markets.
3. SPX Technologies, Inc. (NYSE:SPXC)
On April 20, 2026, Truist analyst Jamie Cook raised the price target on SPX Technologies, Inc. (NYSE:SPXC) to $251 from $244 and maintained a Buy rating as part of a broader Q1 preview across machinery, infrastructure services, and multi-industry companies. The firm pointed to improving industrial conditions, noting that March U.S. Manufacturing PMI rose to 52.7 after positive readings in January and February. Truist said the setup for Q1 results appears favorable, though it cautioned that the Iran conflict could still weigh on sentiment and disrupt a broader industrial recovery. The firm also noted that channel destocking appears largely behind the industry, with improving trends in construction and mining equipment, commercial vehicles, and semiconductors.
Earlier in the month, Wells Fargo analyst Joseph O’Dea lowered the price target on SPX Technologies, Inc. to $225 from $270 and maintained an Overweight rating. The firm said its recent industry calls did not reflect heightened caution tied to the Middle East conflict, but warned that continued geopolitical uncertainty could pressure sentiment until there is more clarity.
Last month, BMO Capital initiated coverage of SPX Technologies, Inc. with an Outperform rating and a $243 price target. The firm said SPX has transformed over the past five years into a SMID-cap compounder with strong growth and margin characteristics, highlighting its HVAC exposure, differentiated technology, disciplined capital allocation, and multiple long-term growth drivers.
SPX Technologies, Inc. supplies engineered solutions for the HVAC and detection and measurement markets globally.
2. Parker-Hannifin Corporation (NYSE:PH)
On April 23, 2026, Parker-Hannifin Corporation (NYSE:PH) declared a quarterly cash dividend of $2.00 per share, an 11% increase from its previous quarterly dividend of $1.80 per share. The dividend will be paid on June 5 to shareholders of record as of May 8.
On April 13, 2026, Citi raised its price target on Parker-Hannifin Corporation to $1,137 from $1,092 and maintained a Buy rating as part of a broader Q1 preview across industrial companies. The firm said that gradually improving industrial trends remain intact and should support solid first-quarter earnings across much of the sector.
Earlier in the month, Goldman Sachs raised its price target on Parker-Hannifin Corporation to $1,040 from $1,032 and maintained a Buy rating as part of a broader Q1 preview for multi-industry companies. The firm said the company’s full-year aerospace margin guidance of 29.5% to 29.9% may prove conservative because it implies a sequential slowdown in the second half of the year.
Parker-Hannifin Corporation manufactures motion and control technologies used across aerospace, industrial equipment, transportation, energy, and HVAC and refrigeration markets globally.
1. Vertiv Holdings Co (NYSE:VRT)
On April 24, 2026, JPMorgan analyst Stephen Tusa raised the price target on Vertiv Holdings Co (NYSE:VRT) to $350 from $305 and maintained an Overweight rating. On the same day, Morgan Stanley also raised its price target on Vertiv to $350 from $285 and kept an Overweight rating, saying it exited Q1 “more constructive” on sustained order strength that suggests Q4 was not an outlier. The firm said management’s 2026 order commentary was more supportive than it was three months ago and sees room for further positive estimate revisions even after the latest guidance increase.
On April 23, 2026, Oppenheimer raised its price target on Vertiv Holdings Co to $330 from $320 and maintained an Outperform rating. The firm said the stock traded lower following the company’s Q1 earnings beat and higher FY26 guidance due to elevated expectations and what appeared to be conservative Q2 guidance. Oppenheimer added that deferred revenue trends and a growing pipeline suggest additional guidance increases could follow later this year.
A day earlier, Vertiv guided for Q2 EPS of $1.37 to $1.43 versus $1.43 consensus and Q2 revenue of $3.25B to $3.45B versus $3.41B consensus. Dave Cote said the company continues to strengthen its competitive position as customers increasingly turn to Vertiv for large-scale infrastructure needs. He also pointed to Vertiv’s addition to the S&P 500 in March as a reflection of its financial performance and leadership in digital infrastructure.
Vertiv also raised its FY26 outlook, projecting adjusted EPS of $6.30 to $6.40 versus $6.16 consensus, revenue of $13.5B to $14B versus $13.7B consensus, and adjusted free cash flow of $2.1B to $2.3B. The company said data center demand remains strong and that it is accelerating capacity expansion and strategic investments to capture additional market share.
Vertiv Holdings Co reported Q1 adjusted EPS of $1.17, topping the $1.01 consensus estimate, while revenue of $2.65B matched expectations. CEO Giordano Albertazzi said data center infrastructure requirements are evolving as customers increasingly prioritize optimized design, faster deployment, and greater operational efficiency. He added that Vertiv’s investments in technology, capacity expansion, and strategic acquisitions are helping drive market share gains as customers seek faster deployment, stronger reliability, and broader service capabilities for increasingly complex infrastructure projects.
Vertiv Holdings Co designs, manufactures, and services critical digital infrastructure technologies for data centers, communication networks, and commercial and industrial markets.
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