Industrial sectors are increasingly viewing the data center market as a promising investment opportunity. Demand for specialized equipment continues to rise.
Companies Expanding into Data Center Market
Firms like Gates Industrial and Generac have begun enlarging their sales of specialized equipment, including backup generators and cooling pumps, for tech giants like Amazon, Alphabet, Meta, and Microsoft.
Investment Growth Amid Uncertainty
Despite uncertain market conditions, interest in data center construction persists. Companies such as Caterpillar and Johnson Controls made early moves into this space during uncertainty brought by tariffs. Morgan Stanley analyst Chris Snyder noted the resurgence in demand for data center services, fueled in part by AI growth.
Equipment Adaptation for Data Centers
Gates Industrial has expanded its capabilities to design pipes and pumps used for cooling servers. Generac has also modernized its facilities, investing around $130 million in 2023 to produce generators aimed at hyperscale clients.
The rising interest of industrial companies in the data center market reflects the profitability of this sector. With increasing demand for data center infrastructure, investments continue to rise, sustaining high valuations for companies.
