Want to Make a Fortune From the AI Power Boom? Buy These 2 Industrial Stocks

Want to Make a Fortune From the AI Power Boom? Buy These 2 Industrial Stocks

John Ballard, The Motley Fool

Thu, September 10, 2026 at 7:35 PM GMT+3 4 min read

Data centers will need a lot more electricity. That's the takeaway from Goldman Sachs research published Sept. 1, 2026, which estimates U.S. data center power demand could approach 108 gigawatts by 2030.

That surge creates opportunities not only for utilities that deliver power to the grid, like American Electric Power (NASDAQ: AEP), but also for companies that manage power and heat inside the data center, like Vertiv (NYSE: VRT). Here's how these industrials stocks can help you profit from the artificial intelligence (AI) power boom.

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1. American Electric Power

American Electric Power is one of the country's leading utilities, serving millions of customers across 11 states. It also operates the largest transmission network, which puts it in a prime spot to capture rising demand from data centers for more high-voltage lines and additional power supply.

AEP now has 69 gigawatts of contracted load additions through 2030, up from 63 gigawatts disclosed in the first quarter. That increase highlights growing customer commitments and supports the case that data center demand is durable.

To meet that demand, management has laid out a five-year, $78 billion capital spending plan. Results so far this year reinforce the opportunity: The company raised its 2026 operating earnings guidance to $6.25 to $6.55 per share, and it expects operating earnings to grow more than 9% annually through 2030, powered by that investment cycle.

On the second-quarter earnings call, CEO Bill Fehrman called this an "incredible period of growth that's expected to last well into the next decade." Even with uncertainty around the Electric Reliability Council of Texas (ERCOT) review process -- which could shift project timelines -- large-load customers remain committed to connecting to AEP's system.

The long-term demand picture looks strong, and the stock pays investors to wait, with a forward dividend yield of about 3% -- based on the current $126 share price and a quarterly dividend of $0.95 per share. The dividend has grown by more than 5% annually over the past five years. That mix of today's income and growth tied to critical data center load could make the stock a rewarding investment over the next decade.

2. Vertiv

Vertiv supplies critical infrastructure for inside data centers, including switchgear and liquid cooling, that keep high-performance AI chips running at the right temperatures.

As data centers shift to more advanced designs to support larger chip clusters, power needs rise, and so does heat. That dynamic gives Vertiv a chance to sell more equipment per megawatt of compute, expanding its revenue opportunity as customers build denser, more power-hungry facilities.

Revenue growth has accelerated to more than 20% year over year over the past year, and management expects that strength to continue. On the second-quarter earnings call, CEO Gio Albertazzi said: "The global pipeline momentum remains very strong, and we expect another year of robust orders growth."

The company put its backlog at $15 billion at the end of 2025, extending deliveries into 2027. For 2026, management guided for sales of $14 billion, with organic sales (excluding currency and acquisitions) expected to grow roughly 31% over 2025.

At its Investor Day in May, management projected long-term organic sales growth of 20% to 22% annually through 2030. If operating margins continue to improve, earnings growth could outpace sales growth.

There are risks. If data center spending slows, customers could cancel or push out orders, delaying revenue and pressuring a stock that isn't cheap at about 43 times forward earnings. Still, continued growth in the data center build-out could provide market-beating returns for investors. If Vertiv delivers on Wall Street's expectation for roughly 38% annualized earnings growth in the years ahead, shares could offer meaningful upside.

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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Vertiv. The Motley Fool has a disclosure policy.

Want to Make a Fortune From the AI Power Boom? Buy These 2 Industrial Stocks was originally published by The Motley Fool