AI infrastructure drives surge in datacenter power demand and hardware stocks

Global datacenter power demand capacity is projected to reach 161GW by 2026, representing a 31% year-on-year increase. According to research from TrendForce, AI servers are the primary driver of this growth, expected to account for approximately 33.4% of total demand capacity in 2026, with that share potentially exceeding 40% in 2027.

As demand rises, data center operators are increasingly planning for high-voltage direct current (HVDC) power architectures to improve distribution efficiency. While efficiency improvements in electrical and mechanical systems have helped manage loads, the rapid deployment of IT equipment and non-IT equipment, such as cooling systems, continues to drive demand. There are concerns that grid supply expansion may struggle to keep pace with this growth.

In the corporate sector, enterprise AI spending is driving significant market activity for hardware and networking providers. Hewlett Packard Enterprise (HPE) reached a record high following the expansion of its AI server portfolio using AMD processors. Arista Networks also hit an all-time high due to its Ethernet rack-scale technology designed for large AI clusters. Additionally, NetApp saw stock gains following an analyst upgrade, reflecting broader optimism in the enterprise infrastructure spending cycle.