https://www.marketwatch.com/story/eaton-takes-aim-at-500-billion-data-center-backlog-with-its-latest-biggest-buyout-this-year-73af5cc2?mod=home_invest
Eaton takes aim at $500 billion data-center backlog with its latest, biggest buyout this year
Eaton is spending $9.5 billion to acquire Boyd Thermal, after buying Firebond and Resilient Power for more than $1.5 billion combined over the past three months
Eaton Corp is making its third and largest acquisition this year to boost its product offerings in the data center infrastructure space, which has seen a construction backlog reach nearly half a trillion dollars over the past year.
“In data centers particularly, our combined expertise in both power and liquid cooling from the chip to the grid will enable customers to manage increasing power demands more effectively,” Eaton Chief Executive Paulo Ruiz said in a statement.
In the second quarter, Eaton’s data center business grew 50% and its orders were up 55%, he said.
While data centers have been seen as a boost to tech companies in the artificial-intelligence business, the power demand for AI has driven interest in many industrial sectors, including utility companies such as Constellation Energy Corp. CEG and even bulldozer maker Caterpillar Inc. CAT.
https://www.morningstar.com/stocks/xnys/etn/quote
Company Profile
Founded in 1911 by Joseph Eaton, the eponymous company began by selling truck axles in New Jersey. Eaton has since become an industrial powerhouse largely through acquisitions in various end markets. Eaton’s portfolio can broadly be divided into two parts: its electrical and industrial businesses. Its electrical portfolio (representing around 70% of company revenue) sells components within data centers, utilities, and commercial and residential buildings, while its industrial business (30% of revenue) sells components within commercial and passenger vehicles and aircraft. Eaton receives favorable tax treatment as a domiciliary of Ireland, but it generates over half of its revenue within the US.
ETN stock is up 265% over the past 5 years.
I have a tiny bit through my VIS Vanguard Industrials ETF. The AI trend has more legs to run as US corporations will be implementing AI more & more. At my age,74, this seems a safer bet though likely less return than a specific AI stock investment. YMMV