Stock Markets June 1, 2026 10:37 AM

Barclays Flags Gas Power Equipment Winners as AI-Driven Data Center Buildout Accelerates

Bank’s analysts single out turbine, generator and component makers set to gain from a projected $1 trillion-plus AI infrastructure spend

By Marcus Reed CAT ATI CMI BKR WWD

Barclays' technology team estimates that annual infrastructure investment by Western hyperscalers and AI labs could top $1 trillion before peaking in 2028, a projection more than $300 billion above consensus. The bank highlighted more than a dozen manufacturers of turbines, generators, control systems and advanced materials that it sees as integral to expanding digital and power capacity to support AI training and operations.

Barclays Flags Gas Power Equipment Winners as AI-Driven Data Center Buildout Accelerates
CAT ATI CMI BKR WWD

Key Points

  • Barclays projects annual AI infrastructure spending by Western hyperscalers and AI labs could top $1 trillion before peaking in 2028, more than $300 billion above consensus.
  • The bank identified manufacturers across turbines, generators, fuel cells, control systems and advanced materials as potential beneficiaries of the power buildout.
  • Companies singled out include GE Vernova, Caterpillar, Howmet Aerospace, Cummins, Bloom Energy, FTAI Aviation, ATI Inc., Generac, Woodward, Net Power, Babcock & Wilcox and Baker Hughes; recent company results and agreements range from raised guidance and earnings beats to mixed outcomes.

Barclays' technology analysts have prepared an industry-focused list of manufacturers and suppliers they consider well-placed to benefit from a rapid expansion in AI-related data center power requirements. The team projects that annual AI infrastructure spending by Western hyperscalers and AI labs could exceed $1 trillion before peaking in 2028 - a forecast Barclays says is more than $300 billion above prevailing consensus estimates.

The bank's review focuses on companies that produce critical equipment for power generation and digital infrastructure expansion. The roster spans large diversified industrials, specialist component manufacturers and firms offering alternative and complementary power technologies. Below is a company-by-company summary of Barclays' points, drawn from the bank's assessment and recent company disclosures.


GE Vernova - Barclays notes GE Vernova's capacity targets for gas turbines, with plans to expand turbine capacity from 16 gigawatts to 20 gigawatts by the third quarter of 2026 and to 24 gigawatts by 2028. The company is also pursuing strategic initiatives, including a partnership with Blue Energy to develop a Texas power plant that combines nuclear and natural gas generation, and a definitive agreement to acquire Robotech Automation, a Canadian integrator of robotics and automation systems.

Caterpillar - The industrial manufacturer has outlined aggressive equipment capacity growth goals, intending to increase its Solar turbine capacity by 2.5 times and its large engine capacity by 2 times by 2030 versus 2024 levels. Caterpillar reported first-quarter adjusted earnings per share that were 20% ahead of consensus estimates, prompting several firms, including Argus and BofA Securities, to raise price targets following the results.

Howmet Aerospace - As a supplier of complex turbine blades and castings for major gas turbine original equipment manufacturers, Howmet reported strong first-quarter 2026 results, beating both revenue and earnings per share forecasts, according to Barclays' summary.

Cummins - Cummins, a designer and manufacturer of natural gas-powered generator sets and engines for standby and prime power, has revised upward its 2030 financial targets for growth and profitability. Barclays attributes this change to stronger market positioning and increasing demand.

Bloom Energy - Bloom has secured sizable customer agreements cited by Barclays. AEP executed an unconditional purchase agreement to acquire a substantial portion of Bloom's option for 900 megawatts of fuel cells. Bloom has also expanded a partnership and signed a master services agreement with Oracle for up to 2.8 gigawatts of fuel cells, and the company raised its 2026 guidance after quarterly results that exceeded expectations.

FTAI Aviation - The company converts CFM56 aircraft engines into 25-megawatt aeroderivative turbines and is targeting more than 100 conversions annually. FTAI reported a first-quarter 2026 revenue beat while missing earnings per share forecasts; Moody's Ratings upgraded the company's corporate family rating to Ba1 from Ba2, referencing lower leverage.

ATI Inc. - ATI manufactures advanced nickel alloys and zirconium used in hot sections of land-based gas turbines. In the first quarter of 2026, ATI reported earnings per share that exceeded analyst forecasts while revenue fell short of expectations.

Generac - Generac holds approximately $400 million of backlog for new diesel backup generators aimed at data center customers. The company reported first-quarter 2026 results with earnings per share and revenue that both topped expectations, and Jefferies upgraded its rating on Generac to Buy from Hold.

Woodward Inc. - Woodward supplies control solutions, including valves and actuators for gas and steam turbines. In the second quarter of fiscal 2026, the company reported record net sales of $1.1 billion and earnings per share that surpassed analyst forecasts.

Net Power - Net Power develops natural gas energy technology designed to produce electricity with carbon capture. The company reported a first-quarter 2026 earnings per share miss, with results below analyst expectations, as noted in Barclays' compilation.

Babcock & Wilcox - Babcock provides equipment and services for power generation facilities, including gas-fired assets. Barclays includes the firm among companies relevant to the power buildout without citing additional company-specific results in its summary.

Baker Hughes - Baker Hughes is noted for the ability to sell aeroderivative turbines into the oil and gas industry and to offer its proprietary NovaLT industrial turbines to a range of end-markets. Barclays lists Baker Hughes as a supplier with relevant product offerings for the anticipated power demand increase.


Barclays says it has compiled a list of more than 400 companies it regards as essential to the digital and power infrastructure expansion tied to AI training and operations. The bank's analysis factors in potential upside from sovereign AI initiatives and from China before the firm's assumption that AI training demand will decelerate due to recursive self-improvement.

Barclays' projection of AI infrastructure spending - exceeding $1 trillion annually before a 2028 peak and running well above consensus - is the central driver behind the bank's screening of manufacturers and service providers that could see increased orders for turbines, generators, fuel cells, control systems, advanced alloys and conversion services for aeroderivative units.

Investors and industry participants tracking capacity additions for data centers and related onsite generation should consider equipment lead times, project backlogs and the mix between grid-supplied power and on-site generation as they evaluate demand for the companies Barclays highlights.

Risks

  • Earnings and revenue variability - several companies reported mixed quarterly results (for example, ATI had EPS beat but revenue shortfall; FTAI had a revenue beat but an EPS miss), which could affect near-term stock performance and project execution - impacts industrials and manufacturing sectors.
  • Project and technology execution - initiatives such as GE Vernova's combined nuclear and natural gas plant and Bloom Energy's large fuel cell agreements depend on successful delivery and integration, creating implementation risk for power suppliers and utilities.
  • Demand trajectory uncertainty - Barclays' forecast assumes significant upside before AI training decelerates; if AI infrastructure spending does not materialize at the scale projected, equipment suppliers and contractors could face lower-than-expected orders - impacts power equipment, components, and services markets.

More from Stock Markets

Anthropic Urges Joint Mechanism to Slow Frontier AI if Self-Improvement Outpaces Risk Controls Jun 4, 2026 S&P Global Upholds Fast-Entry Rules Ahead of SpaceX Public Debut Jun 4, 2026 Insperity Shares Climb After CEO Buys 233,000 Shares Jun 4, 2026 SpaceX Signals Firmness on $135 IPO Price as Roadshow Begins Jun 4, 2026 CME Chief Warns CFTC Approval of Perpetual Crypto Futures Could Create Systemic Risk Jun 4, 2026