Nvidia’s H100 GPU generates roughly 700 watts of heat. Rack-mount AI servers can dissipate 30–100 kW per rack. Traditional air cooling can’t keep up — and the construction of new AI-ready facilities is booming.
Two categories of companies are positioned at the intersection of these trends: cooling infrastructure specialists and data center construction/deployment services firms.
Cooling Infrastructure
Vertiv Holdings (VRT)
Vertiv makes thermal management systems, power distribution, and IT infrastructure products specifically for data centers. Their liquid cooling solutions are increasingly critical for high-density AI deployments.
The AI angle: Vertiv has been the most direct AI infrastructure beneficiary in the cooling space. Management has consistently described accelerating AI-driven demand for their liquid cooling and power management products.
The catch: Vertiv has already been discovered. The stock has risen dramatically from its post-SPAC lows. The AI premium is substantially priced in — meaning this is a “quality at a price” story, not a hidden gem. The thesis depends on AI infrastructure deployment continuing to accelerate.
What to watch: Order intake, liquid cooling adoption rates, and gross margin trajectory.
Modine Manufacturing (MOD)
Modine makes thermal management systems — heat exchangers, cooling coils, and related products — for a range of industries including data centers. It’s a smaller, less-covered company than Vertiv with potentially more valuation upside if data center demand accelerates as expected.
The AI angle: Modine’s data center thermal products business has been growing rapidly. It’s a more leveraged, earlier-stage play on the same cooling demand trend.
What to watch: Data center segment revenue as a percentage of total revenue, and new contract announcements.
Data Center Construction and Deployment
Comfort Systems USA (FIX)
Comfort Systems provides HVAC, plumbing, electrical, and mechanical services — including to the data center industry. As AI infrastructure drives demand for data center construction and retrofitting, Comfort Systems benefits as a key deployment and installation partner.
The AI angle: Data center work has become an increasingly significant portion of Comfort Systems’ business. Their ability to handle complex mechanical and HVAC work in mission-critical environments is a competitive advantage.
The catch: Comfort Systems trades at premium multiples. Like Vertiv, the AI opportunity is at least partially priced in.
Quanta Services (PWR)
Quanta provides infrastructure services — electrical, pipeline, and telecom — across energy and utility markets. Their data center and power grid business intersects directly with AI infrastructure demand.
The AI angle: AI data centers require grid upgrades and power delivery infrastructure, not just internal electrical systems. Quanta benefits from both the data center construction wave and the broader grid upgrade cycle driven by electrification and AI power demand.
The Bundled Trade
Cooling and construction stocks tend to move together in AI infrastructure cycles. If you believe in the distributed inference thesis, both categories benefit. A basket approach — holding positions in 2–3 names across both categories — reduces single-stock risk while maintaining exposure to the theme.
This is not financial advice. Past performance does not guarantee future results.