Power Infrastructure
Power infrastructure for AI data centers spans backup generators, UPS and battery systems, switchgear and power distribution, and the upstream electricity generation that feeds hyperscale facilities. The sub-theme sits at the intersection of established industrial power-equipment suppliers, utility-scale generation operators, and the contract manufacturers and component makers that support them, all of which are being reshaped by surging data center electricity demand.
Active institutional funds cut a net $13.9 billion in Q2 2026, versus $1.5 billion in Q1 2026 — an outflow 806% larger. 65.2% of companies in this sub-theme saw decreased active positions in Q2 2026.
Overview
Power infrastructure for data centers encompasses the generators, uninterruptible power supply (UPS) systems, switchgear, and power distribution equipment that keep compute facilities operating continuously, along with the upstream electricity generation that feeds them. Vertiv and EnerSys are established leaders supplying critical power and energy-storage equipment for data center and industrial applications, competing with large diversified suppliers including Eaton, ABB, and Johnson Controls International. Powell Industries manufactures custom-engineered electrical distribution and switchgear equipment used across the value chain, while Generac, Cummins, and Caterpillar supply commercial and industrial backup generators. Component- and systems-level suppliers such as Monolithic Power Systems and Advanced Energy Industries provide power management semiconductors used in data center and industrial power electronics, and Woodward supplies engine and turbine controls used across industrial power applications. On the generation side, Constellation Energy operates nuclear and gas generating assets and holds power purchase agreements directly with hyperscale customers such as Microsoft and Meta Platforms, supplying electricity, capacity, and emissions-free attributes to power their data center operations. Baker Hughes supplies turbines, compressors, and related equipment used in gas-fired power generation. Contract manufacturers including Jabil and Flex build and assemble hardware for data center and networking customers such as Arista Networks and Amazon, and engineering and services firms such as EMCOR and Johnson Controls support the design, installation, and maintenance of power and mechanical systems in these facilities.
Investment Thesis
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Bottleneck Tracker
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Key Companies
Related Events
Anthropic's S-1 discloses $542-567 billion of compute and infrastructure commitments, including a $417 billion deal signed Dec. 31, 2025 and up to $120.5 billion of SpaceX-hosted Nvidia capacity. The new Anthropic Direct program shifts a growing share of spend to leased, dedicated data centers, with $125.2 billion of rent over five years and Broadcom as the largest partner at $42 billion of potential financing. Broadcom rose 3% on the news, while Amazon, Google and Microsoft are shown as simultaneous suppliers, investors, customers and competitors. The filing flags large upfront cash outflows, power-connection delays and chip or equipment shortages as risks to liquidity and execution. Revenue of roughly two dollars per dollar of compute is a supportive unit-economics signal, but the scale of fixed commitments raises the stakes for AI demand continuing.
SoftBank's reported $50 billion plan would be one of the largest single AI infrastructure commitments in Southeast Asia, dwarfing Google's $2 billion, AWS's $6.2 billion and Microsoft's $2.2 billion pledges in Malaysia. It builds on a framework agreement with Grab and Petroleum Sarawak Berhad to explore AI and digital infrastructure in Sarawak. The plan reinforces Malaysia's position as a regional data center hub, which has already drawn about $94 billion in related investment since 2021. Details such as timeline, structure and financing are not confirmed, and SoftBank has not commented, so the headline figure carries execution risk. Suppliers of data center power, cooling, networking and compute stand to benefit if the spending materializes, while it also adds to SoftBank's heavy AI capital commitments.
TikTok USDS Joint Venture is exploring multi-gigawatt compute procurement, with one source citing a four-gigawatt target by the early 2030s. The scale adds to the global scramble for AI infrastructure and could create sizable demand for data center capacity, power and chips. Oracle, which is both a managing investor and the primary cloud provider, remains the likely anchor beneficiary, though sourcing from other providers is possible. Localized retraining of the recommendation algorithm on U.S. data and a planned B2B AI product point to rising inference and training needs. Sources are anonymous and the spokesperson only affirmed Oracle's primary role, so the size and timing of any deals remain unconfirmed.
The deal signals that AI-driven datacenter capex is flowing beyond chips and racks into industrial design and lifecycle software, rewarding diversified power-and-automation players like Schneider. PTC shareholders get a large cash premium, while rivals in CAD/PLM such as Siemens and Dassault Systèmes face a newly well-capitalized competitor with direct ties to power infrastructure customers. Schneider's stock and bond investors will watch integration risk and regulatory review, since the deal won't close until late 2027 and is Schneider's largest ever. The move also validates Schneider's broader acquisition strategy (Motivair, Cognite) of vertically integrating design, automation and power delivery for liquid-cooled AI datacenters. Expect continued consolidation among datacenter power, cooling and industrial software vendors as incumbents race to offer end-to-end lifecycle platforms.
Solid-state transformers represent a potential disruption of the conventional transformer supply chain that is already severely capacity-constrained due to data center demand. If solid-state technology achieves commercial viability at scale, it creates a new market for power semiconductor companies (SiC, GaN) while threatening incumbent conventional transformer manufacturers. Data center operators benefit from the higher efficiency, smaller footprint, and digital controllability of solid-state designs. The EV charging application extends the total addressable market. Conventional transformer makers face long-term obsolescence risk in high-density applications, though near-term demand remains robust given the existing supply backlog.