Power and Cooling Companies Surge as AI‑Driven Data Center Buildout Hits $1 Trillion

AI‑driven workloads are pushing the global data‑center market past the $1 trillion mark, and the surge is reverberating through the power‑and‑cooling ecosystem. Companies that keep servers humming—ranging from established infrastructure giants to newer specialists—are reporting record orders, announcing ambitious IPO targets and drawing fresh investor attention.

Core developments across the sector

Reuters notes that the data‑center boom is no longer limited to chip makers; firms that provide power distribution, UPS systems and precision‑cooling are experiencing “explosive” growth as AI models require ever‑larger compute clusters (Reuters). Schneider Electric, Vertiv and Eaton are highlighted as the primary beneficiaries, each citing double‑digit revenue lifts in the latest quarter.

Technology Org adds that the demand for high‑density cooling is reshaping design standards. Customers are shifting from traditional air‑side solutions to liquid‑cooling loops that can extract heat more efficiently, a trend that is accelerating equipment orders for both new builds and retrofits (Technology Org).

Fortune’s coverage of the broader investment theme lists several publicly traded stocks that give investors exposure to the infrastructure side of the AI surge. In addition to semiconductor names, the outlet points to “power‑and‑cooling specialists” whose market caps have risen sharply since the start of 2024 (Fortune).

India’s Economic Times reports that Yotta Infrastructure, a provider of power‑distribution and cooling services for data centers, is targeting an initial public offering between January and March 2027 and aims to raise up to $1.5 billion (The Economic Times). The filing indicates that Yotta expects its addressable market to expand in line with the AI‑driven data‑center buildout.

TradingView’s analysis of Jabil Inc. shows that the contract‑manufacturer’s “AI data‑center” segment posted a notable uplift in the most recent fiscal year, driven by orders for power‑module assemblies and thermal‑management components (TradingView). The piece asks whether this growth trajectory can be sustained as the sector matures.

Finally, 24/7 Wall St. warns that the rising electricity demand of data centers could outpace current grid capacity, and it suggests that nuclear power may become a “critical piece of the puzzle” for meeting the sector’s energy needs without exacerbating carbon emissions (24/7 Wall St.).

Why it matters

The data‑center explosion is not just a story of silicon; it is a story of energy. AI models such as large language processors consume megawatts of power per training run, and the cooling infrastructure required to keep those racks within safe temperature envelopes can account for up to 40 % of a facility’s total energy use. As a result, the profitability of power‑and‑cooling providers is increasingly tied to the broader climate and energy‑policy landscape.

Investors are paying attention because the sector sits at the intersection of two megatrends: exponential growth in compute demand and a global push toward decarbonization. Companies that can deliver high‑efficiency UPS systems, renewable‑energy‑compatible power distribution and liquid‑cooling solutions stand to capture a share of the trillion‑dollar data‑center market while helping clients meet stricter sustainability targets.

Moreover, the financing activity around Yotta and the market enthusiasm for related stocks signal that capital markets view the power‑and‑cooling niche as a “next‑generation infrastructure” play, akin to how telecom towers were treated during the mobile‑phone boom.

What the sources show

All six sources agree on a single point: AI is the catalyst behind a data‑center construction wave that is reshaping demand for power and cooling equipment. Reuters and Technology Org focus on the scale—citing a market now exceeding $1 trillion and describing “explosive” order growth—while Fortune and TradingView translate that scale into stock‑market opportunities, naming specific equities that have benefited.

The Economic Times provides the most concrete financial detail, disclosing Yotta’s planned IPO size of up to $1.5 billion and its 2027 timeline. That figure is the only explicit fundraising number among the sources.

Where the coverage diverges is on the outlook for continued expansion. Reuters emphasizes the “trillion‑dollar” market as a long‑term runway, whereas 24/7 Wall St. cautions that without additional clean‑energy capacity—particularly nuclear—the sector could hit a supply bottleneck. TradingView asks a more company‑specific question: will Jabil’s growth in AI‑related components sustain beyond the current surge?

None of the sources provide a unified forecast for the sector’s revenue growth rate, nor do they all agree on the timing of when the market might plateau. The variance underscores the still‑emerging nature of the AI‑driven data‑center expansion.

What’s next

Yotta’s IPO filing sets a clear milestone: investors can expect a prospectus by early 2027, with the capital raise slated for the first quarter of that year (The Economic Times). The proceeds are earmarked for scaling manufacturing capacity and expanding service contracts in regions where new AI‑focused data centers are being planned.

Analysts at TradingView will be watching Jabil’s quarterly earnings releases for signs that its AI‑related component segment continues to outpace the company’s broader business. A sustained double‑digit growth rate would reinforce the view that the power‑and‑cooling demand curve remains upward‑sloping.

On the policy front, 24/7 Wall St. notes that several governments are reviewing grid‑upgrade incentives and nuclear‑energy licences to accommodate the projected increase in data‑center load. Legislative action in the United States, the European Union and parts of Asia could shape the cost structure for power‑and‑cooling firms over the next 12‑18 months.

Finally, investors are likely to keep an eye on the “trillion‑dollar” benchmark cited by Reuters. If industry analysts confirm that data‑center capex continues to grow at a pace that sustains that valuation, the power‑and‑cooling niche may see further IPOs, M&A activity and a deepening of the investment theme across both equity and fixed‑income markets.