US Industrial Giants Pivot to Data Center Market Amid AI Boom

Industrial powerhouses like Gates Industrial, Generac, and Honeywell are aggressively expanding into the data center equipment market, supplying critical infrastructure such as backup generators and hybrid cooling systems to tech titans including Amazon, Alphabet, Meta, and Microsoft. Honeywell CEO Vimal Kapur recently emphasized data centers as a strategic priority during an earnings call, citing resilient growth despite macroeconomic headwinds.

The AI revolution is fueling unprecedented demand for data center construction, with legacy manufacturers like Caterpillar and Cummins doubling down on investments initiated during the Trump-era tariff uncertainties. Morgan Stanley analyst Chris Snyder observes 'supersonic growth' in the sector, noting data center clients consistently command premium pricing compared to other industrial markets.

Vertiv Holdings Co., a specialist in data center cooling and power solutions, exemplifies this trend as industrial firms reposition themselves to capitalize on the infrastructure demands of artificial intelligence and cloud computing.