Data-center deployment delays create investment opportunity in infrastructure stocks; multi-year backlog.

Data center buildout faces a critical timing issue. According to JPMorgan Chase, more than 60% of planned data center capacity for 2027 has not yet begun construction. An additional 7% of projects under way are experiencing delays from supply chain bottlenecks, permitting hurdles, and power shortages.

Some investors point to the recent technology stock rotation as evidence that the data center narrative is weakening. Yet recent earnings season tells a different story. Demand remains genuine and capital is committed. The four major hyperscalers increased their combined AI-related capital expenditures to $750 billion for 2026, with demand expected to reach $1 trillion in 2027.

The fundamental constraint is that data center construction cannot be accelerated. The story has gotten ahead of the shovels. This mismatch creates an opportunity for investors: companies supplying the equipment needed to close that backlog stand to benefit most significantly.

Exchange-traded funds like the Global X U.S. Infrastructure Development ETF (PAVE), up 22% in 2026, offer exposure to this theme. However, individual stocks may deliver stronger returns.

**Eaton (ETN)** provides the electrical infrastructure inside AI data centers—switchgear, UPS systems, busways, and power distribution units connecting the grid to server racks. In Q1 2026, Eaton's Electrical Americas segment saw data center orders surge roughly 240% year over year, while data center revenue in that segment grew about 50%. The company's acquisition of Boyd Thermal expands its liquid cooling capabilities, while collaboration with NVIDIA on the Beam Rubin DSX platform targets AI infrastructure directly. A planned Reverse Morris Trust transaction will spin off Eaton's Mobility Group, leaving a more focused Electrical and Aerospace business aligned with AI buildout. ETN is up 28% year-to-date, trading within 5% of its consensus price target, and analysts have been aggressively raising targets since the Q1 2026 earnings report.

**Quanta Services (PWR)** executes the physical work that converts data center site plans into operational power infrastructure, building high-voltage transmission lines, substations, and load centers. At its 2026 Investor Day, management outlined a $2.4 trillion addressable market through 2030. The company exited Q4 with a $44 billion backlog, up 27.5% year-over-year, and management guides for 15% to 20% annual earnings per share growth through 2030. Internal training programs have built a skilled-labor moat that smaller competitors struggle to replicate, providing pricing power as electricians and linemen become scarce. PWR is up over 65% year-to-date, trading within about 5% of its consensus price target. The technical picture is constructive, with support at the 50-day simple moving average and a MACD approaching reversal.

**Vertiv (VRT)** supplies the power and thermal infrastructure inside the facility. Once Quanta completes grid work, Vertiv's UPS systems, switchgear, racks, and liquid cooling solutions take over. Approximately 75% of revenue now derives from data center customers. Q1 2026 revenue grew 30% to $2.65 billion, and the project backlog more than doubled to over $15 billion. Management raised full-year guidance to $13.5 to $14 billion in net sales. Recent acquisitions of Strategic Thermal Labs and ThermoKey extend Vertiv's portfolio from chip-level cold plates to facility-scale heat rejection. Vertiv was named a Tier 1 partner on Hut 8's gigawatt-scale Beacon Point AI campus. VRT is up over 95% in 2026 and trades within 5% of its consensus price target. While analyst sentiment is mixed, investors with a longer-term horizon should consider Vertiv's potential for strong dividend growth in the coming years.