Data Center Stocks: Bank of America's Electrical Infrastructure Picks

Bank of America released a thematic screen identifying 67 buy‑rated stocks it sees positioned to benefit from AI-driven data center build‑outs, with the selected universe covering power, electrical equipment, water/cooling and strategic metals suppliers.

The bank's research highlights rising electricity demand from data centers and aging transmission and distribution assets that will require significant investment, pointing to suppliers of switchgear, transformers, UPS systems and grid equipment as direct beneficiaries. The Bank of America Institute's analysis quantifies the strain on U.S. electrical infrastructure and projects sustained demand growth.

Market reports and analyst notes drawn from the BofA screening name specific industrial and utility plays — including Eaton, GE Vernova and specialist infrastructure vendors — alongside mining and metals companies supplying copper and other transition materials. Separate analyst coverage shows Bank of America maintaining buy views and raised targets on select power‑equipment names tied to the transition.

For investors, the theme implies differentiated exposure: hardware and electrical‑infrastructure suppliers may enjoy durable order books but also face execution and supply‑chain risk; utility names exposed to data‑center load growth can see steadier regulated earnings. Recent M&A activity in electrical products underscored by Reuters coverage also reflects strengthening demand dynamics in the space.

In a broader economic context, Bank of America's work situates data‑center electrification within a longer‑term investment cycle requiring grid modernization, additional generation and distribution upgrades — a multi‑year opportunity for firms across equipment, engineering and raw‑materials segments.

Analysts advise selective stock selection within the theme, emphasizing balance‑sheet strength, contract visibility and exposure to critical subsegments (e.g., HVDC solutions, UPS, transformer manufacturing). While thematic screens provide a starting point, company‑level due diligence remains essential as short‑term newsflow or policy shifts can rapidly alter outlooks.