Better AI Infrastructure Stock: Vertiv vs. Eaton

Microsoft, Meta, Amazon, Alphabet and other tech giants are projected to spend as much as $1 trillion on AI in 2027.

Vertiv specializes in AI infrastructure with essential data center products, such as power management and cooling solutions

Eaton is a legacy electrical supplier and has transitioned to a comprehensive chip-to-grid infrastructure provider.

The amount of capital being invested by artificial intelligence (AI) hyperscalers is mind-blowing. During recent earnings calls, Microsoft , Meta Platforms , Amazon , and Alphabet revealed plans to spend $732.5 billion on AI capital expenditures (capex) in 2026. Forecasts from Goldman Sachs and JPMorgan Chase project AI capex will top $1 trillion in 2027, with trillions more pouring in in the coming years.

This huge capex spending has made Vertiv (NYSE: VRT) and Eaton (NYSE: ETN) attractive pick-and-shovel plays for the hardware boom. While both companies supply essential power and cooling systems, they appeal to different investor profiles.

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Vertiv specializes in infrastructure crucial for modern data centers. This includes high-density power management, chillers, and liquid cooling. As modern AI chips push rack densities to extreme levels, Vertiv is pursuing modular solutions such as Vertiv OneCore and partnering with Nvidia to design next-generation 800V DC power architectures.

In addition, Vertiv is addressing another major concern surrounding data centers: cooling solutions and the water they use. The company manufactures closed-loop cooling systems that use almost no water during operation. Its PurgeRite offering is a unique fluid management service that treats and recycles water, reducing water usage by up to 90%.