From Cooling to Backup Power, Data Center Demand Is Showing Up in Quarterly Results
Four companies reported Q3 results showing strong demand for data center supplies. Vertiv (VRT) saw 61% sales growth, raising full-year guidance. American Tower (AMT) reported 4.5% revenue growth, driven by data center segment. Johnson Controls (JCI) reported 10% sales growth, with data center demand supporting orders. Generac (GNRC) reported 16% sales growth, with a $2.4B Amazon deal boosting backlog to $4.5B.
How this was made
The 30-second read
Why it matters
Collectively, the earnings beats and guidance lifts suggest a bullish bias for the data‑center supply chain, though valuation concerns remain.
Market read
Strong quarterly results across multiple data‑center power and cooling firms reinforce the sector's growth narrative and may drive short‑term buying interest.
What to watch
Potential supply‑chain bottlenecks or rising energy costs could temper future margin expansion.
Background
The article aggregates Q3 earnings and guidance updates from four U.S.-listed data‑center infrastructure providers, highlighting sector‑wide growth trends.
Ticker impact
Vertiv reported Q3 net sales up 61% YoY, organic growth over 100%, and raised full-year 2026 net sales guidance.
likely upside as strong sales and raised guidance drive investor optimism
Quarterly beat and guidance raise suggest continued momentum in data‑center power infrastructure.
American Tower posted Q3 property revenue up 4.5% and raised its Data Centers segment outlook, adding $315 M to share repurchases.
moderate upside as investors price in stronger data‑center leasing demand
Guidance lift and repurchase program signal confidence in continued demand.
Johnson Controls posted fiscal Q4 sales up 10% to $7.1 B, highlighted data‑center order growth, and set FY2027 organic sales growth guidance of 11‑12%.
potential upside as data‑center demand backs earnings strength
Guidance raise and strong order backlog indicate sustained sector tailwinds.
Generac reported Q3 net sales up 16% to a record $1.29 B, secured a $2.4 B Amazon backup‑power supply agreement, and kept full‑year guidance.
likely upside as the Amazon deal expands exposure to data‑center power needs
Contract win and sales beat suggest strong near‑term earnings momentum.
Market effects
Data‑center power, cooling and backup‑generator suppliers are experiencing robust demand, lifting the broader infrastructure sector.
U.S. construction spending and corporate capex growth benefit domestic suppliers like Vertiv, AMT, JCI and GNRC.
The results underscore the rapid expansion of the global data‑center market projected to exceed $1 trillion by 2035.
Counterpoint
Valuations for these suppliers may already price in strong growth, limiting upside despite impressive quarterly numbers.
Key entities
- companyVertiv Holdings Co
Global leader in critical digital infrastructure.
- companyAmerican Tower Corp
Owner and operator of communications infrastructure, including data‑center towers.
- companyJohnson Controls International plc
Provider of thermal management and building systems for data centers.
- companyGenerac Holdings Inc.
Manufacturer of backup power generators, recently secured Amazon data‑center contract.
