The AI gold rush is in full swing, but the real winners may not be the chipmakers themselves but the infrastructure players powering the next-gen data centers.

JPMorgan analyst C. Stephen Tusa, Jr. has doubled down on his bullish stance for Vertiv Holdings Co (NYSE:VRT) and Eaton Corporation PLC (NYSE:ETN), emphasizing that the data center buildout is not just in its early innings – it hasn't even taken the field yet.

Overcapacity? Not So Fast

Investors have been debating whether the AI-driven data center boom is peaking, with concerns of overcapacity bubbling up. But Tusa's latest take from a recent data center conference suggests the opposite: demand is still in its infancy. With AI factories layering onto core cloud demand, data center power consumption estimates continue to soar and near-term constraints in physical buildout mean supply is nowhere near catching up.

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Blackwell-related shipments may be ramping, but the next-gen Rubin architecture isn't even on the field yet. This is causing companies to pause and strategize—not because of weakening demand but because the stakes are getting higher.

The result? Long-term visibility for infrastructure suppliers like Vertiv and Eaton. These are positioned to benefit from the evolving complexity of high-density cooling, power management, and modular data center solutions, says Tusa.

Follow The Money: Capital Keeps Pouring In

While some fear a speculative bubble, industry financing tells a different story. Tusa said traditional investors are now classifying data centers as core infrastructure assets, with project financing volumes expected to hit $60 billion in 2025 – double this year's levels.

Private equity is jumping in, and even securitization is becoming a factor. The real challenge? A shortage of available data center space, not an oversupply.

In fact, one financier noted that securing even 100 MWs of capacity is a headache – let alone 1 GW.

Vertiv And Eaton: The Real AI Picks And Shovels?

With lead times for critical data center components like transformers and liquid cooling solutions still stretched, Vertiv and Eaton are emerging as clear winners for Tusa.

Vertiv, in particular, is capitalizing on its differentiated portfolio, with long-term commitments from hyperscalers and a sold-out order book for the next 18 months.

Meanwhile, Eaton's power management solutions remain integral to handling the ever-growing energy demands of AI workloads.

The takeaway? While the hype cycle surrounding AI may ebb and flow, the infrastructure needed to support it is only just getting started.

As demand intensifies and supply struggles to keep up, names like Vertiv and Eaton could remain firmly in the driver's seat.

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