Stock Markets May 21, 2026 12:15 PM

Bank of America Identifies Top 10 Power-Related Stocks for Data Center Demand

Rankings 27-38 from the bank's 67-stock data center infrastructure list highlight utilities, power producers and equipment makers

By Hana Yamamoto GEV CAT SRE DTE EVRG

Bank of America singled out ten companies it views as central to meeting the power, distribution and equipment needs of expanding data center capacity. The group - spanning utilities, independent power producers, battery manufacturers and industrial equipment suppliers - includes GE Vernova, Caterpillar, Sempra and others, with recent company results and corporate actions noted for several names.

Bank of America Identifies Top 10 Power-Related Stocks for Data Center Demand
GEV CAT SRE DTE EVRG

Key Points

  • Bank of America highlighted ten stocks (ranked 27-38 in its 67-stock data center infrastructure universe) that are integral to data center power and equipment needs.
  • The companies span power generation, utilities, independent power producers, battery manufacturing and industrial equipment suppliers, impacting the energy and industrial sectors.
  • Several firms reported recent quarterly results or corporate actions: Caterpillar beat EPS expectations and saw price target increases; Sempra posted EPS above forecasts but revenue below; Evergy and Talen reported strong quarterlies.

Bank of America has flagged a subset of companies positioned to support the electricity generation, energy distribution and industrial equipment requirements of data centers, ranking them 27 through 38 within a broader 67-stock universe it considers important to the sector. The 10 companies cover developers of generation equipment, regional utilities, independent power producers, battery suppliers and manufacturers of industrial power systems.

The list and the firm-specific notes that follow reflect recent operational headlines and financial disclosures reported by the companies themselves or noted by analysts.


  • GE Vernova (NYSE:GEV) - Placed at the top of this group, the energy-focused spinoff from General Electric supplies power generation equipment and related services used by data centers. GE Vernova disclosed a partnership with Blue Energy to build a Texas power plant that will combine nuclear and natural gas generation. The company has also experienced analyst changes, including a downgrade to neutral from BNP Paribas Exane while Mizuho and Jefferies increased their price targets.
  • Caterpillar (NYSE:CAT) - Ranked second, Caterpillar provides backup power systems and infrastructure machinery used in building and operating data center facilities. The firm reported first-quarter earnings per share that were 20% above expectations, prompting price target raises from firms such as Argus, Bernstein and BofA Securities.
  • Sempra (NYSE:SRE) - At third, Sempra operates utilities and energy networks that serve data center customers across its territories. In recent disclosures, Sempra posted first-quarter 2026 adjusted earnings per share of $1.51, which exceeded forecasts, while revenue of $3.66 billion fell short of expectations.
  • DTE Energy (NYSE:DTE) - Ranked fourth, the Detroit-based utility supplies electricity and natural gas to commercial customers including data centers in its regional footprint. DTE reported first-quarter adjusted earnings per share of $1.95, missing consensus estimates, but it reiterated its guidance and announced it plans to pause requests for electric rate increases for at least two years.
  • Evergy (NYSE:EVRG) - Placing fifth, Evergy serves customers in Kansas and Missouri where data center projects continue to develop. The company reported strong first-quarter 2026 results, with earnings per share of $0.69 and revenue of $1.44 billion both beating analyst expectations.
  • Talen Energy (NASDAQ:TLN) - Sixth on the list, Talen Energy is an independent power producer operating generation assets that supply wholesale markets and large commercial users. Talen reported a robust first-quarter 2026 performance with EPS of $1.33 and revenue of $1.13 billion, and it completed debt refinancing transactions that are expected to yield annual savings.
  • EVE Energy (SHE:300014) - Seventh, the Chinese battery maker produces energy storage solutions that are applied in backup power systems for data centers.
  • CMS Energy (NYSE:CMS) - Eighth on the ranking, CMS Energy provides electric and natural gas services to commercial and industrial customers within its service territory.
  • Wartsila OYJ (HEL:WRT1V) - Ninth, the Finnish technology company manufactures power generation equipment and energy management systems for industrial applications.
  • PPL Corp (NYSE:PPL) - Tenth, PPL supplies electricity distribution services to customers across Pennsylvania, Kentucky and the United Kingdom.

Each company in this group plays a distinct role in meeting the operational and resiliency requirements of data centers, from primary generation and grid delivery to on-site backup and energy storage. Several firms in the list released quarterly results or corporate updates that market participants and analysts have noted, and those disclosures are reflected in the summaries above.

Bank of America's rankings are part of a larger assessment of 67 stocks the bank identifies as relevant to data center infrastructure demand; the ten companies outlined here occupy slots 27 through 38 of that broader list.

Risks

  • Mixed company results and analyst actions introduce uncertainty for investors; examples include GE Vernova's analyst downgrade to neutral alongside price target increases by other firms - this impacts investor sentiment in the energy sector.
  • Some companies reported revenue shortfalls or missed consensus estimates even when EPS exceeded forecasts or guidance was reaffirmed, as with Sempra and DTE Energy, which may influence utility sector valuations.
  • Operational and financing outcomes remain variable across independent power producers and battery makers, illustrated by Talen Energy's refinancing steps and EVE Energy's role in storage - these factors affect cost structures and near-term financial performance in the power generation and energy storage sectors.

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