The Motley Fool·2026-03-07 08:05Industry Overview - The technology industry is investing $700 billion in capital expenditures this year to build new data centers, driven by the rapid expansion of artificial intelligence and cloud-based services [1] - This investment is creating a generational cycle in power generation and grid modernization [1] Company Insights: Quanta Services - Quanta Services is strategically positioned to benefit from the infrastructure boom, providing turnkey solutions across the power delivery process [4] - The company has made significant acquisitions, including Cupertino Electric for approximately $2 billion and Dynamic Systems for about $1.5 billion, enhancing its capabilities in low-voltage electrical engineering and infrastructure for data centers [6] - Quanta's project backlog reached $44 billion, a 27.5% increase year-over-year, with projected earnings per share (EPS) growth of 17% to 18% annually over the next five years [7] Company Insights: Vertiv - Vertiv provides critical data center infrastructure, including power management and cooling systems, and has seen a 252% year-over-year growth in organic orders in the fourth quarter [8] - The company's backlog more than doubled to a record $15 billion, driven by robust demand from hyperscalers [8] - Vertiv plans to increase capital expenditures from 2-3% to 3-4% of sales to support anticipated revenue growth, projecting organic sales growth of approximately 28% by 2026 [11] Company Insights: Eaton - Eaton is focusing on the growing demand for data centers, having spent $9.5 billion to acquire Boyd Thermal, which specializes in liquid cooling systems [12] - The company has noted a significant increase in "mega projects," with a $3 billion pipeline in North America and a win rate of about 40% on bids [14] - Eaton's data center orders surged by approximately 200% year-over-year, with total backlog in the Electrical Americas segment reaching a record $13.2 billion, a 31% increase [15]