The rise in power demand for data centers — which are booming from the need to support a new world of AI technologies — is also fueling demand for the providers of data center parts.
"Expected power usage for U.S. data centers under construction is equivalent to more than 50% of the power currently used by U.S. data centers.
Several years out, even after these data centers are constructed, some expect data center power consumption to double again," analyst Thomas Thornton wrote in a Wednesday note.
Management is raising its own capital expenditures for the first time in a decade to meet the power demand for data centers, BofA added.
To be sure, analysts mentioned that data center demand will likely exceed supply.
Persons:
Thomas Thornton, Thornton, BofA, David Barden, Barden, Equinix, Eaton
Organizations:
Bank of America, Caterpillar, Management, Realty Trust, Digital Realty, Software, Aspen Tech, Constellation Energy, Dominion Energy