2 Data Center Stocks That Could Help Make You a Fortune
2026-09-26 10:15
•John Ballard •The Motley Fool
••••• ••• Axe Cap view
Two Data Center Plays Worth Your Attention
Hyperscale AI investment is fueling growth in data center infrastructure, spotlighting Iren and Vertiv.
The AI boom is transforming data centers from mere storage sites into critical infrastructure hubs. Iren’s integrated model—owning land, power, and construction—gives it a rare edge, with a bold revenue leap planned by 2026. This isn’t just hype: Microsoft’s deal with them validates their execution. Vertiv, supplying essential power and cooling gear, rides a steady wave as data centers grapple with surging energy needs. Both companies have strong growth forecasts. South African investors, while these firms aren’t on the JSE, their success ties back to broader tech infrastructure trends that could influence USD/ZAR moves, given the rand’s sensitivity to global tech investment cycles. A weaker dollar or tech downturn could stall their growth, so watch for those risks. this is just our opinion and not financial advice
For those prioritizing quality growth amid the AI surge, consider adding Iren and Vertiv through offshore channels. Keep an eye on USD/ZAR shifts to manage currency risk and avoid overcommitting until near-term data confirms sustained momentum.
- USD/ZAR
- IREN
- VRT
- Global tech slowdown
- US dollar depreciation impacting offshore returns
6/10
As hyperscalers invest heavily in data center infrastructure to support AI services, with Morgan Stanley projecting $1.4 trillion in capital spending by 2028, two data center stocks offer attractive valuations: Iren, which is building an AI cloud platform with vertically integrated capabilities and targeting $4 billion revenue by 2026, and Vertiv, which supplies power management and cooling systems to data centers with projected 20-22% annual revenue growth through 2030.
Our take is based on reporting first published by The Motley Fool.
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