3 Stocks Retail Investors Are Watching for AI Data Center Power Demand

AI-heavy tech giants are pouring eye-watering sums into data centers, power, and networking gear, yet investors are suddenly questioning every dollar that does not clearly feed cash generation. That shift turns the spotlight toward quieter infrastructure stocks that might collect steady rent, power fees, or equipment orders while the big platforms wrestle with free cash flow concerns. This article unpacks three stocks exposed to that AI capex story and explains how their positioning could matter for your portfolio decisions.

The three stocks below are just a sample set, and the full screen on Simply Wall St surfaced 25 more companies with equally compelling stories tied to AI-driven buildouts that are not covered here. To go deeper on this theme right now, head straight into the AI-Driven Data-Center Infrastructure and Power Enablers screener to identify, compare, and analyze which infrastructure plays fit your own risk and return preferences.

Thermax (NSEI:THERMAX)

Overview: Thermax provides energy and environment solutions like industrial boilers, cooling systems and power infrastructure that help large facilities, including data centres, manage reliable, efficient energy and thermal loads.

Operations: Thermax generates most of its ₹111.8b operating revenue from Industrial Products (₹52.0b) and Industrial Infra (₹43.2b), with smaller contributions from Chemicals and Green Solutions.

Market Cap: ₹350.6b

Thermax matters in this AI infrastructure theme because it sells the industrial heating, cooling and power systems that keep energy hungry data centres running efficiently, which translates headline capex numbers into actual equipment orders.

Early traction in data center infrastructure, including first US and Indian orders in cooling and boiler pressure parts, limited global competition for its cooling technology and MOUs with two major US solution providers, is intended to position Thermax to convert capacity expansions in TBWES and cooling into higher order intake, revenue and contribution to operating margins over time.

The key variable is how one still developing part of the order book ultimately affects the margins investors are monitoring.

Those margin swings are only half the picture, and the full narrative for Thermax brings together how Thermax’s data center bets, contract mix, and capital allocation could reshape the story.

Kehua Data (SZSE:002335)

Overview: Kehua Data provides uninterruptible power, energy saving systems and modular data center solutions that support reliable, efficient AI and cloud workloads.

Market Cap: CN¥17.2b

Kehua Data plugs directly into the AI data-center theme through UPS and data-center products, while posting 32% earnings growth and a 6.5% net margin alongside a 31x P/E that sits below the broader electrical peer average. However, the heavy use of external borrowing means future returns on this power buildout depend on how one unseen pressure plays out.

If that debt load is the swing factor for you, jump into the Kehua Data financial health report to see how Kehua Data’s balance sheet pressure really stacks up.

Shenzhen Sinexcel ElectricLtd (SZSE:300693)

Overview: Shenzhen Sinexcel ElectricLtd supplies power electronic equipment such as grid-interface, power quality and energy storage systems for high-density data centers and related infrastructure.

Market Cap: CN¥9.3b

Shenzhen Sinexcel ElectricLtd provides direct exposure to the power electronics behind AI-heavy data centers, with reported earnings growth of 30% over the past year, a P/E around 16.4x against a peer average near 41.5x, and strong ROE and margins that may change depending on how one funding pressure evolves.

That funding question is exactly what the analysis report for Shenzhen Sinexcel ElectricLtd unpacks, helping you assess whether Shenzhen Sinexcel ElectricLtd is priced for acceleration or a reset.

Seeking Fresh Alternatives Before They Fly

New themes can move quickly. Breakout stories may gain momentum, then become crowded and expensive. Consider these fresh idea lists while they are still relatively under the radar.

• Target steadier cash generators and aim to reduce portfolio shocks by reviewing a curated 218 resilient stocks with low risk scores that prioritises durable earnings power and balance sheet strength.
• Explore potential income opportunities while yields remain elevated by scanning a hand picked pool of 222 dividend fortresses built for investors who care about regular cash returns.
• Position for the evolving automation landscape and focus on industrial demand by zeroing in on carefully filtered 95 robotics and automation stocks candidates.

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