**Data Center Demand Fuels Billions in Capital Spending for 2026**
Major tech companies, including Amazon, Microsoft, Alphabet, and Meta Platforms, are projected to spend nearly $700 billion combined on capital expenditures for AI infrastructure in 2026, marking over a 60% increase from 2025. Analysts from Goldman Sachs and Morgan Stanley predict that U.S. AI-related capital spending could reach around $800 billion in 2026 and rise to $1.12 trillion in 2027.
Vertiv (NYSE: VRT) reported a 30% year-over-year revenue increase to $2.6 billion for the first quarter of fiscal 2026, with an expected revenue range of $13.5 billion to $14 billion for the entire year. The company holds a $15 billion backlog, up 109% from the previous year. Argan (NYSE: AGX) experienced a 50% revenue growth to $291 million in the same quarter and has a backlog of approximately $2.8 billion. Argan’s primary growth opportunities lie in constructing power generation facilities in response to rising data center power demands, which are estimated to double by 2027.
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