Hyperscale cloud providers have collectively guided for $600 billion to $630 billion in combined capital expenditures for 2026, with roughly 75% of that budget earmarked for AI infrastructure. Stocks tied to data center construction are surging as that money is committed, with power-and-cooling maker Vertiv one of the biggest winners. Amazon and Alphabet alone account for a combined $375 billion to $385 billion of the projected spending.
Stocks tied to AI data center construction are surging as hyperscale cloud providers collectively guide for $600 billion to $630 billion in combined capital expenditures for 2026, with roughly 75% of that budget earmarked for AI-related infrastructure. Amazon plans to invest about $200 billion and Alphabet guides for roughly $175 billion to $185 billion, a significant upward shift from prior predictions.
Vertiv rides the buildout
Vertiv, which makes the power and cooling systems that keep data centers from melting, has been one of the biggest winners. The stock is up over 70% year-to-date, and the company reported order growth of 252%, building a backlog of $15 billion. Vertiv also raised its 2026 revenue guidance to between $13.5 billion and $14 billion, with adjusted earnings per share projected at $6.30 to $6.40.
The demand spike is largely driven by the industry's shift toward high-density server racks. Those racks pack more compute power into less space and generate enormous amounts of heat, so advanced cooling systems are no longer optional.
Other data center stocks attracting trader attention include Digital Realty, at a market cap of around $66 billion, and Equinix at roughly $100 billion. On the hardware side, Nvidia sits at approximately $5 trillion in market capitalization, while Dell hovers around $252 billion.
Memory chips sit in the path
AI data centers are projected to consume up to 70% of global memory chips by 2026, which puts Micron and TSMC squarely in the path of the demand wave as they manufacture the memory and processors AI workloads need. South Korea then announced plans to invest over $1 trillion in semiconductors and AI data centers, a move that boosted shares in suppliers like Vertiv by approximately 7% on the announcement alone.
Concentration risk sits under the trade
The hyperscalers have committed to spending levels that give their suppliers multi-year revenue visibility. Vertiv's $15 billion backlog represents roughly a full year of revenue at its current guidance range.
But concentration risk is real, because Amazon and Alphabet alone account for a combined $375 billion to $385 billion of the projected capex. With AI data centers projected to consume 70% of global memory chips, any disruption to chip manufacturing could simultaneously hurt buildout timelines and spike component costs. Investors positioned in this theme need to watch TSMC's capacity expansion plans and US-China trade dynamics as closely as they watch earnings reports.
Source: Crypto Briefing
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