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.
While we acknowledge the potential of TT 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 TT and that has 100x upside potential, check out our report about the cheapest AI stock.
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