Best Data Center Cooling Stocks for the AI Era in 2026

Imagine a super-powered brain working non-stop; that's essentially what an AI data center is. These facilities are packed with Graphics Processing Units (GPUs) that consume significantly more electricity and generate far more heat than traditional CPUs. For example, a single rack equipped with NVIDIA's Blackwell (GB200 NVL72) GPUs can draw between 120-140 kilowatts (kW) of power. To put that in perspective, older server racks typically drew only 5-10 kW. This incredible jump in power density means that conventional air cooling, which has been the standard for decades, is simply no longer sufficient. It's like trying to cool a blast furnace with a desk fan!

This isn't just about comfort; it's about performance and reliability. Overheating can lead to system failures, reduced efficiency, and costly downtime. As AI workloads become more demanding, pushing rack densities to unprecedented levels (with some future designs reaching 250 kW to over 1 megawatt per rack), liquid cooling has moved from an experimental concept to an industry standard for AI-centric deployments. In fact, cooling can account for up to 40% of a data center's total energy consumption, making efficient thermal management crucial for both operational costs and environmental sustainability. The market for thermal energy storage in AI data centers alone is projected to grow from $1.88 billion in 2025 to $4.54 billion by 2030, demonstrating the immense need for these advanced solutions.

When you think of companies directly benefiting from the AI data center boom, Vertiv Holdings Co (VRT) often comes to mind. It's considered one of the closest pure-plays in the data center power and cooling space. Vertiv has been on a tear, reporting exceptional first-quarter 2026 results with record revenue, margins, and free cash flow. The company's revenue reached $2.65 billion in Q1 2026, with diluted earnings per share (EPS) jumping a remarkable 136% to $0.99. Management even raised its full-year guidance, a strong signal of confidence.

A key highlight for Vertiv is its substantial order backlog, which stood at over $15 billion in Q1 2026. This provides excellent revenue visibility well into 2027. To further bolster its capabilities, Vertiv completed the acquisition of ThermoKey in June 2026, expanding its liquid cooling and heat rejection systems portfolio. While the stock has seen significant appreciation, soaring over 73% year-to-date in 2026 before a recent pullback, its valuation, with a forward price-to-earnings (P/E) ratio in the 40s, reflects high investor expectations. Analysts, however, remain bullish, anticipating earnings to grow at an annualized rate of 32% over the next several years, supported by management's 2026 organic sales growth guidance of 27-29%.

Eaton Corporation plc (ETN) is a global power management company that's strategically positioned to benefit from the AI data center buildout, offering solutions from the electrical grid all the way to the chip. The company had a stellar first quarter in 2026, posting record revenue of $7.5 billion, driven by 10% organic growth, and subsequently raising its full-year organic growth midpoint to 10%. What's particularly exciting for data center investors is the surge in demand within its Electrical Americas segment, where orders climbed 60% year-over-year, and data center-specific orders accelerated an astounding 240%.

Eaton made a significant move in March 2026 by completing its $9.5 billion acquisition of Boyd Thermal, a specialist in liquid cooling. This acquisition allows Eaton to offer integrated cooling and power solutions directly at the rack level, a crucial offering for hyperscale data centers. The Boyd Thermal business alone is projected to contribute $1.7 billion in revenue for 2026. Furthermore, Eaton is investing in cutting-edge direct current (DC) power solutions and solid-state transformers, which promise to reduce electrical losses by 5% compared to traditional alternating current (AC) systems. Recognizing the immense opportunity, Eaton formalized its commitment to this sector by establishing a new global data center segment, effective April 1, 2026.

Carrier Global Corporation (CARR), a well-known name in climate and energy solutions, is rapidly transforming its portfolio to capitalize on the booming demand for data center thermal management. The company's pivot is evident in its first-quarter 2026 results, where data center orders skyrocketed by over 500%. This massive influx of demand means Carrier's backlog now fully covers its expected data center sales for 2026, which are projected to reach $1.5 billion. To meet this demand, Carrier has aggressively expanded its manufacturing capacity, including a 50% increase at its Charlotte facility and converting a Monterrey, Mexico plant entirely to chiller production.

Carrier isn't just scaling up existing tech; it's actively pursuing next-generation liquid cooling solutions. The company invested in ZutaCore in early 2025 to advance two-phase, waterless direct-to-chip liquid cooling, ensuring it remains at the forefront of AI data center architectures. Carrier has also been showcasing its QuantumLeap™ integrated data center solutions, which include Coolant Distribution Units (CDUs) and intelligent software, at major industry events like Data Center World Washington in April 2026 and Datacloud Global Congress in June 2026. Despite some broader market fluctuations, Carrier reaffirmed its full-year 2026 guidance, expecting approximately $22 billion in sales and $2.80 in adjusted EPS, underscoring the strength of its data center growth engine.

Beyond the larger, diversified players, specialized companies are also carving out significant niches in the data center cooling market. AAON Inc. (AAON) stands out because data center cooling isn't just an adjacent business for them; it's a named end market and product category. This direct exposure is paying off, with AAON reporting record revenue for the first quarter of 2026. The company generated $1.62 billion in revenue, with impressive year-over-year growth of 54.3% in revenue and 37.1% in earnings. AAON's stock has climbed about 40% year-to-date in 2026, and analysts see potential for another 41% jump, with an average price target of $149.67.

Another interesting player is SPX Technologies, Inc. (SPXC), which is seeing its HVAC segment increasingly driven by data center demand. In the first quarter, SPX's HVAC revenue increased 22% year-over-year, and its HVAC backlog swelled to $755 million, up 38% organically, largely due to data centers. The company anticipates its data center sales to rise by approximately 50% in 2026. SPX also launched its Marley OlympusMAX Fluid Cooler in April 2026, a modular cooling platform specifically designed for data centers and high-density applications, highlighting its commitment to this growing market. These companies, while perhaps smaller than the giants, offer focused exposure to the critical need for advanced thermal management.