Meet the non-tech companies cashing in on the AI data center spending boom

As major technology firms break spending records in their quest to develop advanced AI infrastructures, a recent report from Bank of America Global Research highlights that the boom is not limited to the tech sector alone. Various industrial sectors, including energy management and construction manufacturing, are also reaping the rewards of increased investment in AI-related data centers. The global data center market is projected to soar to $939 billion by 2028, a significant rise from $406 billion last year. Notably, a staggering 84% of this expenditure is anticipated to be directed towards AI servers. However, the surge in demand for industrial equipment is expected to benefit numerous sectors beyond just technology. Data centers require a vast array of infrastructure to operate efficiently, encompassing everything from thermal and cooling systems to backup power solutions. According to the report, spending on data center infrastructure outside of IT is expected to grow at an impressive rate of 19% annually, reaching $147 billion by 2028. Key areas of investment include electrical and thermal equipment designed to manage temperatures within data centers. Schneider Electric stands out as a dominant player in the electrical equipment market for data centers, holding a 21% market share and counting tech giants like Google and Amazon among its clients. The company recently announced a partnership with Nvidia. Vertiv, based in Ohio, is another significant provider, experiencing heightened demand for its innovative liquid cooling technology, with its stock price rising over 50% in the past year. Liquid cooling technology is projected to witness the fastest growth, with an anticipated annual increase of 60% through 2028, outpacing all other categories, including AI server spending. As operators of data centers increasingly favor liquid cooling methods for AI servers over traditional air cooling, the market has seen a surge of new entrants, including startups like JetCool. Despite the influx of new vendors—estimated at around 30 offering over 100 different liquid cooling solutions—established firms like Vertiv remain confident in their market leadership. The report emphasizes that the conservative nature of data center operators means that reputation and service capabilities will be crucial in shaping their purchasing decisions. Generators represent another key expenditure category for data center operations. With Caterpillar commanding a substantial 42% share of the data center generator market, it leads competitors like Cummins and Rolls-Royce, which hold 24% and 21% shares, respectively. Caterpillar's stock recently reached an all-time high of $444.85. While these companies primarily manufacture traditional diesel generators, the report notes a growing trend among data center operators to explore alternative generator types. For instance, the data center developer Crusoe has secured contracts for nearly one gigawatt of natural gas turbine generators from GE Vernova for its facility in Abilene, Texas.