AI buildout creates 3 stock opportunities in data centers, energy

AI demand is reshaping infrastructure investing, with data center construction and power generation emerging as the two most direct beneficiaries of the artificial intelligence buildout.

The accelerating buildout of artificial intelligence infrastructure is creating investment opportunities across data center operators, chipmakers and energy producers as demand for computing capacity outstrips supply, according to Luke Taylor.

"As society evolves, so does the infrastructure," Taylor said, referencing the ways AI demand is accelerating business needs for data centers and chipmakers. He identified opportunities spanning the companies constructing data centers to the energy producers powering them.

The AI infrastructure cycle has become one of the most capital-intensive buildouts in technology history. Hyperscalers — Microsoft, Amazon, Google and Meta — are expected to spend a combined $250 billion on capital expenditures in 2026, with the majority directed at AI data center capacity, according to industry estimates. That spending is flowing through to electrical equipment manufacturers, cooling system providers and construction firms, while simultaneously straining power grids and boosting demand for natural gas, nuclear and renewable energy sources.

Data center capacity in the U.S. is projected to more than double to 50 gigawatts by 2028 from roughly 20 gigawatts today, driven by the computational requirements of training and running large language models. A single 1-gigawatt data center campus consumes enough electricity to power roughly 750,000 homes, creating a parallel surge in demand for power generation infrastructure.

Energy producers are emerging as indirect beneficiaries of the AI boom. Utilities and independent power producers are signing long-term contracts with hyperscalers seeking to secure reliable electricity for their facilities. Natural gas-fired plants, nuclear reactors and renewable projects with firm power purchase agreements are seeing increased interest as data center operators prioritize around-the-clock carbon-free energy.

The Philadelphia Semiconductor Index, a bellwether for the AI trade, has surged 92.5% over the past 12 weeks at a recent peak — a rate of change rivaled only by the dot-com era semiconductor melt-up in 2000, according to LPL Research. While the index has since pulled back 12% from those highs, the long-term demand trajectory for AI chips remains intact as companies like Nvidia, AMD and Broadcom race to deliver higher-performance processors for training and inference workloads.

For investors, the AI infrastructure theme offers exposure across multiple sectors. Data center real estate investment trusts, electrical equipment manufacturers, natural gas producers and semiconductor companies each capture different parts of the value chain. The key risk is timing: positioning data from Vanda shows equity positioning in AI-related names recently touched two standard deviations above the mean, a level that historically preceded short-term consolidation.

The opportunity set remains broad, but selectivity matters. Companies with direct exposure to hyperscaler capital expenditure budgets — those supplying power infrastructure, networking equipment or specialized cooling systems — may offer more durable earnings growth than pure-play chipmakers facing cyclical inventory corrections. As the buildout enters its next phase, the winners will be those whose products are essential to the physical infrastructure of AI, not just the software running on top of it.

This article is for informational purposes only and does not constitute investment advice.