We are launching our Powering AI strategy in EUR (with USD hedging).
While the USD trajectory has been a source of concern, the outlook for the Powering AI theme has never been stronger. Data center capex continues to surprise on the upside: recent hyperscaler announcements point to roughly $700 billion of spending in 2026, up ~60% year-on-year and ~20% above prior expectations. Given that roughly half of data-center capex is tied to electrical infrastructure (cooling, switchgear, transformers, backup power and related systems), the revenue opportunity for cooling and power-equipment vendors will be massive.
Recent results already point to an inflection. Cooling specialist Vertiv reported Q4 orders far above expectations, with organic orders up 250% year-on-year and 120% above the prior Q3 record — clear evidence that revenue and earnings are entering new territory rather than merely benefiting from a one-off boost.
Looking ahead, risks remain skewed to the upside. The next generation of Nvidia chips is expected to consume 50–100% more power than Blackwell, and the migration toward ~800 V rack-level power distribution will require a redesign of data center electrical and thermal architectures. This transition should materially increase the electrical content per rack and structurally raise the addressable market for power and cooling suppliers.
In parallel, hyperscalers are increasingly becoming direct participants in the energy system. Following political pressure tied to rising US electricity prices, hyperscalers are beginning to fund grid infrastructure themselves. Anthropic has announced it will finance 100% of the grid upgrades required to connect its data centers, while others — such as Google — are moving toward more structural solutions, including direct ownership of generation assets (e.g., the $4.75 billion acquisition of Intersect Power).
Demand from utilities is already strong — as illustrated by Siemens Energy’s latest figures (gas services orders up 81% year-on-year and 20% above expectations) — but direct hyperscaler funding of generation and transmission assets could speed up and give another boost to electric infrastructure capex, a clear positive for generation and grid equipment players.
