Analysts at Bernstein have identified a clutch of electrical equipment stocks as prime beneficiaries of the booming data centre market, citing surging demand for power infrastructure driven by artificial intelligence and cloud computing. The investment firm’s report highlights that global data centre electricity consumption could double by 2026, creating a tailwind for companies supplying critical components such as switchgear, transformers, and cooling systems.
Among Bernstein’s top picks are Siemens AG, Schneider Electric SE, and Legrand SA, all of which have significant exposure to the data centre supply chain. The analysts note that these firms are well positioned to capitalise on the multibillion-pound build-out of hyperscale data centres, particularly in Europe and North America. Shares in Siemens have risen approximately 12 per cent year-to-date, while Schneider Electric has gained over 15 per cent, outperforming the broader European market.
The report comes amid a wider rally in the electricals sector, which has been buoyed by government incentives for digital infrastructure and corporate spending on AI. For UK investors, the trend offers exposure through London-listed exchange-traded funds (ETFs) and multinational stocks traded on the London Stock Exchange. However, analysts caution that supply chain constraints and rising raw material costs could temper margins in the near term.
“The data centre theme is not just about tech giants; it is increasingly about the physical infrastructure that powers them,” said a Bernstein analyst quoted in the report. “Electrical equipment makers are the unsung heroes of the AI revolution, and we expect sustained demand growth over the next five years.” The firm also flagged UK-listed firms such as Eaton Corporation and ABB Ltd as secondary beneficiaries, though neither is a top pick.
For UK pension holders and retail investors, the implications are twofold: direct shareholdings in these multinationals could benefit from structural demand, while broader market indices such as the FTSE 100 may see support from the industrial sector. The FTSE 100 closed at 7,684.5 points on Wednesday, up 0.3 per cent, with industrials among the best-performing sectors. Source: Bernstein Research.