Key Highlights

● Vertiv's organic orders more than doubled in the quarter.

● Generac announced a long-term deal to supply Amazon data centers.

● GE Vernova reported $29.3 billion in quarterly orders.

● The theme extends to grid and connector suppliers too.

The companies that keep the lights on in data centers had a banner day, as from backup generators to cooling systems and grid equipment, suppliers of power gear reported surging orders and raised forecasts, and several of their stocks rallied hard. The message was consistent: AI computing needs vast amounts of reliable electricity, and the businesses that deliver it are seeing demand pour in.

Vertiv Holdings, which makes power management and cooling equipment for data centers, soared after reporting surging third-quarter sales, with organic orders more than doubling and the company raising its full-year sales forecast.

Generac's Amazon Deal

Generac rose after reporting record third-quarter sales, which fell slightly short of estimates, though adjusted earnings beat forecasts. The bigger story was data centers, with Generac announcing a long-term deal to supply backup generators for Amazon data centers, worth about $2.4 billion over two years.

Backup generators are essential for data centers, which cannot afford outages, and if the grid fails, generators keep servers running until power is restored.

Grid and Power Suppliers

GE Vernova, which makes gas turbines and grid equipment, reported $29.3 billion in quarterly orders and raised its guidance, though its stock still dipped, a reminder of how high expectations run for many of these names. Amphenol, which makes connectors used in data centers, rose after posting record orders.

Oil also rallied the same day, with energy among the best-performing S&P 500 sectors, as James West of Melius Research summed up the trend by describing AI compute as a natural gas demand story.