How Advanced Drainage Systems (WMS) Benefits From the Site-Water Needs Behind Data Center Construction

Advanced Drainage Systems, Inc. (NYSE:WMS) is one of the best water infrastructure stocks to buy as AI data centers strain resources. On May 21, 2026, the company reported fourth-quarter fiscal 2026 net sales of $676.8 million, up 9.9% year over year, with stormwater sales rising 11.7% to $534.7 million. Management said the company remains focused on gaining share in growing construction segments, specifically naming data centers as one of the markets supporting its long-term strategy.

ADS is not a liquid-cooling supplier, but data center campuses still require major site-water infrastructure before they can operate, including stormwater drainage, runoff control, underground conveyance, wastewater systems, and rainwater management. The company’s February 2026 acquisition of National Diversified Sales also expanded its water management offering and added $48.8 million of stormwater revenue in the fourth quarter. For fiscal 2026, ADS generated $3.05 billion in net sales, up 5%, while wastewater sales increased 13% to $653.0 million. Its fiscal 2027 outlook calls for net sales of $3.35 billion to $3.55 billion, suggesting continued demand for stormwater and wastewater infrastructure.

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Advanced Drainage Systems, Inc. (NYSE:WMS) provides stormwater drainage, onsite wastewater, rainwater management, pipe, chambers, basins, and related water-management solutions for commercial, residential, infrastructure, agricultural, and industrial markets.

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