AI Data Center Spending Could Lift These 3 Infrastructure Stocks

Heatwaves, grid stress and rising insurance scrutiny are turning data center reliability into a real financial story, not just a tech headline. As AI workloads surge, investors are asking which stocks could benefit from demand for tougher cooling, power backup and climate-resilient infrastructure, and which ones might see higher costs or more frequent disruptions. This article looks at how that news backdrop links to our Climate-Resilient Data Center Infrastructure screener and highlights three stocks that, based on their business profiles, appear positively exposed to these pressures and potential spending shifts.

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TTM Technologies (TTMI)

Overview: TTM Technologies is a US based manufacturer of high performance printed circuit boards, RF components and mission systems that sit inside everything from AI heavy data center servers to radar, aerospace and defense platforms. The company works closely with equipment makers to design and produce complex boards, assemblies and thermal management solutions that handle high speeds, high heat and high reliability requirements across sectors including data centers, automotive, medical and networking.

Operations: TTM Technologies generates most of its revenue from its Commercial segment at about US$1.75b, alongside roughly US$1.33b from Aerospace & Defense, with sales primarily in the United States at about US$1.61b and another US$1.20b across other regions.

Market Cap: US$19.9b

Investors watching the strain on AI data centers may find TTM Technologies interesting because it sits at the intersection of high performance computing, thermal management and defense electronics. The company supplies complex PCBs and assemblies that help hyperscalers and chip makers address heat and reliability pressures. Recent earnings momentum, index inclusion and facility expansions point to growing exposure to AI and defense spending. At the same time, a high P/E, heavy capital spending and concentrated exposure to a handful of large customers mean the story is not risk free. The key consideration for investors is how those trade offs balance out as AI data center investments and climate related resilience spending continue to evolve.

TTM Technologies sits at the intersection of AI demand, defense spending and capital intensity, and the real story is how those forces show up in the 2 key rewards and 1 important warning sign

Blackline Safety (TSX:BLN)

Overview: Blackline Safety develops connected safety wearables, gas detectors and cloud software that track industrial workers and sites in real time, helping companies manage gas leaks, lone worker risks and emergencies across energy, utilities and other heavy industries. Its hardware devices feed into a software platform that provides live monitoring, analytics and communication tools for safety teams.

Operations: Blackline Safety generates about CA$100.9m from service revenue and CA$59.1m from products, with sales concentrated in the United States at CA$73.6m, followed by Europe at CA$40.9m, Canada at CA$29.9m and the Rest of World at CA$15.5m.

Market Cap: CA$790.4m

Heat stressed data centers and heavier insurance scrutiny are putting more focus on real time monitoring of people and critical sites, which is where Blackline Safety stands out. Its connected gas detectors and safety cloud turn hardware sales into high margin recurring service revenue, supported by long term customer relationships like the ADNOC rollout and consistent net dollar retention of 128%. At the same time, the company is still loss making, funded entirely by higher risk external borrowing and has seen insider selling, so execution on the path to profitability and funding discipline matter. With a planned AI product layer aimed at real time and historical data analysis, investors who look deeper into Blackline Safety may find more to the story than the headline losses suggest.

Blackline Safety’s recurring service engine and planned AI layer could be the real story here, not the current losses, so it is worth reviewing the analyst forecasts for Blackline Safety to see what the market might be missing

Advanced Energy Industries (AEIS)

Overview: Advanced Energy Industries provides precision power conversion, measurement and control systems that sit at the heart of semiconductor tools, AI heavy data centers, industrial equipment and medical devices. These systems deliver tightly managed power, temperature and reliability for mission critical workloads.

Operations: Advanced Energy Industries generates about US$1.91b in revenue from Power Electronics Conversion Products, with sales spread across regions including the United States and Mexico.

Market Cap: US$13.24b

Investors watching heatwaves push AI data centers to higher power densities may find Advanced Energy Industries interesting because its power conversion products are built to tackle exactly that problem. Management has highlighted much higher content in AI racks and faster refresh cycles as GPUs demand more power. Recent earnings releases and new 800 V DC converters aimed at megawatt scale AI sites show that data center and semiconductor demand are important business drivers. At the same time, a high P/E, reliance on a handful of hyperscale and semiconductor customers, and exposure to tariffs and sector cycles indicate that the risk and return profile involves meaningful trade-offs, which is why the detailed risk reward picture here matters.

Advanced Energy Industries looks like an AI infrastructure story that is still being priced as a traditional power electronics supplier, so it is worth reading the analyst forecasts for Advanced Energy Industries to see what the revenue mix and customer concentration might really be signaling.

The three stocks covered here are just a starting point, and the full Climate-Resilient Data Center Infrastructure screener surfaces 36 more companies with equally compelling climate resilience and data center narratives that could be worth a closer look. Use Simply Wall St to identify, filter and analyze the specific catalysts, financial health and business stories that matter most so you can focus on the ideas in this theme that you have the highest conviction in.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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