Bullstory Research July 27, 2026
AI consumes electricity: 2026A complete analysis of the power infrastructure beneficiaries
Key takeaways
The IEA forecasts that data center power consumption will exceed 2026 in 1,000 TWh. This is 2022 times the level of 3 year. The lead time for high-voltage transformers has increased to 24 months, so Eaton (ETN) and Vertiv, which make transmission and distribution equipment, are seeing direct benefits.
AI data centers need more electricity as they expand. This simple fact is now changing the earnings of power infrastructure companies.
The International Energy Agency (IEA) expects global data center electricity consumption to exceed 2026 in 1,000TWh. 2022times the 3level. Companies that generate, transmit, and cool that electricity are now building up orders.
There are three beneficiary areas.
The first is transmission and distribution infrastructure. Lead times for high-voltage transformers for data centers have stretched to 24 months. Because supply is short, the company that secured production capacity first is leading pricing. Eaton, Vertiv, and Schneider Electric are direct beneficiaries of this structure.
The second is cooling systems. The latest GPUs generate so much heat that air cooling alone has limits. Liquid cooling, which removes heat with liquid, is being adopted quickly. Vertiv’s cooling device (CDU) revenue increased by more than 150% year over year.
The third is clean energy. Big tech companies such as Google and Microsoft have already disclosed carbon neutrality commitments. To keep those commitments, renewable energy and small modular reactors (SMRs, next-generation reactors that can be made much smaller than conventional nuclear plants) are needed. Constellation Energy, NextEra Energy, and NuScale Power are within this trend.
If you are wondering how to build a portfolio, a practical approach is to center it on companies with a strong backlog, such as Eaton (ETN) and Vertiv (VRT), and place SMR-related stocks in a small allocation on the side. The core is a structure built on stable earnings, while the peripheral holdings are a bet on growth potential.
Which stocks are actually in the most advantageous position in this trend will be addressed stock by stock in the next section.
Frequently asked questions
How much will AI data center power demand increase in 2026?
The International Energy Agency sees 2026 data center power consumption exceeding 1,000 TWh in the year. As a result, transmission and distribution, cooling, and clean energy companies benefit.
What kinds of companies benefit from rising AI power demand?
Transmission and distribution, cooling, and clean energy companies benefit directly. Eaton, Vertiv, Schneider, NextEra, and NuScale are mentioned as examples.
Why are transmission and distribution-related companies advantageous?
Transmission and distribution orders pile up because of a shortage of transformer supply. Transformer lead times have stretched to months, so production capacity is an advantage.24. So production capacity is an advantage.
How is it realistic to construct a portfolio?
The core is to focus on names with growing backlogs, such as Eaton (ETN) and Vertiv (VRT). SMR-related stocks are suggested to be kept alongside them as a small position.
What are the key points of investing in cooling systems?
Due to GPU heat, the adoption of liquid cooling is accelerating, and demand for cooling equipment is growing. Vertiv’s CDU sales increased by 150% compared with the previous year, showing the change.