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The 2026 AI Infrastructure Watchlist
George Babis
January 26, 2026
📈The Thesis
Everyone's still chasing chips.
But the Chip Phase is maturing. In 2026, the real opportunity is the Build Phase : the physical infrastructure that makes AI work at scale.
AI doesn't run on hype. It runs on power, cooling, real estate, and connectivity.
US data center electricity demand is projected to triple by 2035. That's not a software update. That's a generational infrastructure buildout.
This watchlist gives you 10 tickers across 4 pillars. No noise. Just the names worth watching.
⚡ Pillar 1: Power
AI is an energy monster. A single ChatGPT query uses roughly 10x the electricity of a Google search. Multiply that by billions of queries, training runs, and inference workloads. The grid isn't ready.
These companies are building the backbone.
$CAT ( ▼ 1.19% ): Caterpillar
Why it matters:
The "gold standard" for backup power and onsite generation : every major data center needs their generators.
Latte metric to watch:
Energy & Transportation segment revenue growth (data center demand is buried here).
Risk note:
Cyclical exposure to construction and mining downturns.
$ETN ( ▼ 0.83% ): Eaton
Why it matters:
The unglamorous backbone : they handle electrical switching, power distribution, and UPS systems that keep racks from frying.
Latte metric to watch:
Electrical Americas segment organic growth rate.
Risk note:
Margin pressure if raw material costs spike.
$PWR ( ▼ 1.82% ): Quanta Services
Why it matters:
The engineers who actually build the grid infrastructure AI needs : transmission lines, substations, and utility-scale projects.
Latte metric to watch:
Backlog growth in the Electric Power segment.
Risk note:
Execution risk on large-scale infrastructure projects.
🧊 Pillar 2: Cooling
Air cooling is getting benched.
Dense GPU racks run hot : very hot. Traditional cooling can't keep up. Liquid cooling is taking over, and the companies solving thermal management are quietly becoming essential.
$VRT ( ▼ 4.57% ): Vertiv
Why it matters:
The pure-play leader in data center thermal management : their liquid cooling solutions are in the center of the AI buildout.
Latte metric to watch:
Order backlog growth (the best proxy for AI data center demand).
Risk note:
Valuation has expanded significantly : priced for execution.
$MOD ( ▲ 4.49% ): Modine Manufacturing
Why it matters:
A specialist in thermal management pivoting hard into data center cooling systems : smaller but more leveraged to the trend.
Latte metric to watch:
Data center revenue as a percentage of total sales.
Risk note:
Smaller scale means higher volatility if demand softens.
🏢 Pillar 3: Real Estate (REITs)
AI needs a physical home.
Data center REITs are the landlords of the internet. They benefit regardless of which model or chip "wins" : as long as AI keeps growing, they collect rent.
$EQIX ( ▼ 0.62% ): Equinix
Why it matters:
The global king of interconnection : they own the buildings where the internet (and AI infrastructure) actually meets.
Latte metric to watch:
Interconnection revenue growth and cabinet billing per square foot.
Risk note:
Interest rate sensitivity as a REIT structure.
$DLR ( ▼ 0.89% ): Digital Realty
Why it matters:
The hyperscale specialist : when Big Tech giants need massive AI data center capacity, they usually call Digital Realty first.
Latte metric to watch:
New lease signings (measured in megawatts) and renewal spreads.
Risk note:
Tenant concentration risk with hyperscalers.
🔌 Pillar 4: Connectivity
The most ignored bottleneck.
AI workloads require massive GPU-to-GPU communication and ultra-low latency. If the networking layer can't keep up, the GPUs just sit there waiting. Fiber, interconnects, and networking silicon are the hidden enablers.
$SANM ( ▼ 8.26% ): Sanmina
Why it matters:
The "silent partner" : they manufacture high-end optical and networking components that make GPUs talk to each other at scale.
Latte metric to watch:
Communications Networks segment revenue growth.
Risk note:
Customer concentration and contract renewal timing.
Read the full Sanmina deep dive here.
$AVGO ( ▲ 0.17% ) : Broadcom
Why it matters:
The networking chip titan : they own the custom silicon market for high-speed AI data transfers and are embedded in every major hyperscaler's infrastructure.
Latte metric to watch:
AI-related revenue disclosures in earnings calls (management has started breaking this out).
Risk note:
Premium valuation requires continued AI momentum.
$AMT ( ▼ 1.14% ) : American Tower
Why it matters:
A hybrid play : while known for cell towers, they're moving aggressively into edge data centers for localized AI processing closer to end users.
Latte metric to watch:
Data center segment growth and new edge deployments.
Risk note:
Edge data center strategy is still early : execution matters.
The Latte Approach
Don't bet the farm on one ticker.
Build a basket across the 4 pillars and let the capex wave do the work. The AI infrastructure buildout is a multi-year trend : not a single quarter trade.
This watchlist is a starting point. Not a buy list.
Do your own research. Size positions appropriately. Stay diversified.
Want the Full Playbook?
This watchlist is the cheat sheet.
For the complete thesis : including why the "Build Phase" is where the real gains are hiding : read the full breakdown:
And if you want deep dives like this delivered to your inbox every week:
Not financial advice. Educational only.
The information in this document is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance is not indicative of future results.