The artificial intelligence (AI)-powered data center industry is experiencing significant growth, driven by rising demand across multiple sectors, including heavy construction and electric power generation. Companies such as EMCOR Group Inc. (EME), Quanta Services Inc. (PWR), and Caterpillar Inc. (CAT) are uniquely positioned to benefit from this trend, each currently rated as a Strong Buy with Zacks Rank #1.
Year-to-date, EMCOR has increased by 19.2%, while Quanta Services has jumped 46.1%, and Caterpillar has surged 39.4%. However, all three companies are trading below their respective 52-week highs, suggesting potential for future growth. For instance, EMCOR’s short-term price target indicates a possible upside of 41.7%, while Quanta’s is at 30.8%, and Caterpillar’s stands at 26.4% from their last closing prices.
As of June 30, 2026, Quanta’s total backlog reached $53.4 billion, a 49% year-over-year increase, while EMCOR’s remaining performance obligations hit $17.14 billion, up 43.9%. Caterpillar anticipates a growth in power generation driven by data center expansions, with expected earnings growth rates of 43.6% for the current year. These indicators highlight robust long-term potential for all three companies as they navigate the evolving landscape of AI-driven infrastructure demands.
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