From Cooling to Backup Power, Data Center Demand Is Showing Up in Quarterly Results

NEW YORK, Oct. 28, 2026 /CNW/ -- Equity Insider News Commentary - The money going into data centers is showing up in the results of the companies that supply their power, cooling and real estate. Over the past two days, four of those suppliers reported quarterly results that address the data center market directly, and three of them raised or initiated full-year outlooks. The longer-range forecasts point the same way: Precedence Research predicts the global data center market will increase from USD 430.18 billion in 2026 to approximately USD 1,103.70 billion by 2035, expanding at a CAGR of 11.06% from 2026 to 2035. Active Companies from around the markets with current developments this week include: Vertiv Holdings Co (NYSE: VRT), American Tower Corporation (NYSE: AMT), Johnson Controls International plc (NYSE: JCI), Generac Holdings Inc. (NYSE: GNRC).

Construction is one way to measure the buildout. U.S. Census Bureau data released on October 1 put private data center construction spending at a preliminary seasonally adjusted annual rate of about $84.95 billion in August 2026, up from $49.05 billion in August 2025. That is the highest monthly rate in the Census series, which begins in 2014, although the August figure is preliminary and subject to revision.

Some of the biggest buyers of that capacity are still spending. In its October 21 release, Meta Platforms, Inc. reported third-quarter capital expenditures, including principal payments on finance leases, of $34.91 billion, and narrowed its 2026 outlook for those expenditures to a range of $135 billion to $145 billion, from a prior outlook of $130 billion to $145 billion. The company said it is still developing its budget and capacity plans for next year.

All of that capacity needs electricity. In its Short-Term Energy Outlook released on October 6, the U.S. Energy Information Administration said it forecasts electricity demand from the commercial sector, which includes data centers, to increase steadily throughout 2027, growing by 2.8% year over year.

Orders and backlogs tell one part of the story, and the share price tells another. Readers who want to learn how to read what a chart is signaling around earnings can pick up the free Knowledge is Power guide from Stock Preachers at equity-insider.com/sp.

In other industry developments and happenings in the market this week include:

Vertiv Holdings Co (NYSE: VRT)

Vertiv, which describes itself as a global leader in critical digital infrastructure, reported third-quarter net sales of $4,313 million, 61% higher than a year earlier, reflecting 55% organic sales growth and approximately 6% contribution from acquisitions, along with organic orders growth of over 100%. Diluted EPS grew 91% to $1.95 and adjusted diluted EPS grew 78% to $2.21. The company raised its full-year 2026 net sales guidance by $650 million and now expects full-year net sales of $14,650 million and adjusted diluted EPS of $7.15, each at the midpoint of guidance.

"We are in the middle of the largest infrastructure buildout and it's accelerating," said Giordano Albertazzi, Vertiv's Chief Executive Officer.

American Tower Corporation (NYSE: AMT)

American Tower reported third-quarter total property revenue of $2,734 million, up 4.5%, driven by 1.1% Organic Tenant Billings Growth and 16.3% cash revenue growth in its Data Centers segment. As a result of Data Centers segment outperformance, the company raised the midpoint of its full-year 2026 outlook for property revenue by $55 million, and it now expects Data Centers segment property revenue of $1,218 million to $1,228 million, reflecting midpoint growth of 16.1%. American Tower allocated $315 million to share repurchases in the quarter, and after quarter end its board authorized an additional $2.0 billion for future repurchases.

"We delivered another solid quarter, supported by consistent leasing demand across our global tower portfolio and continued outperformance from CoreSite. This momentum, combined with disciplined capital allocation, enabled us to raise our full-year outlook for the third time this year," said Steve Vondran, American Tower's Chief Executive Officer.

Johnson Controls International plc (NYSE: JCI)

Johnson Controls, which describes itself as a global leader in thermal management and mission-critical building systems, reported fiscal fourth-quarter sales up 10% to $7.1 billion, with organic sales up 12%, orders up 44% organically and backlog of $23.0 billion, up 43% organically. In its Americas segment, orders increased 58% and backlog of $17.8 billion increased 54%, excluding acquisitions and divestitures and adjusted for foreign currency, and the company said the increase in orders and backlog was supported by sustained demand for data centers. For fiscal 2027, it initiated guidance for organic sales growth of 11% to 12% and adjusted EPS of $6.15 to $6.30.

"We finished fiscal 2026 with significant momentum, delivering more than 8% organic revenue growth, double-digit adjusted EPS growth and strong free cash flow conversion," said Joakim Weidemanis, Chief Executive Officer of Johnson Controls.

Generac Holdings Inc. (NYSE: GNRC)

Generac reported third-quarter net sales up 16% to a record $1.29 billion, and Commercial & Industrial segment external net sales increased approximately 28% to $552 million. The company noted that, as previously disclosed during the quarter, it entered into an agreement with Amazon.com, Inc. that included a long-term supply agreement for backup power generators for Amazon data centers, with initial deliveries expected to total a combined $2.4 billion in 2027 and 2028. Generac maintained its full-year 2026 net sales growth guidance in the mid-to-high teens percent range and now expects adjusted EBITDA margin of approximately 20.5 to 21.0%, compared with previous guidance of 20.0 to 21.0%.

"Following the recently announced agreement with Amazon, along with other wins from both new and existing customers, our backlog for products to be sold to the data center market has now grown to approximately $4.5 billion, and we continue to execute on our previously announced capacity expansion plans that will allow us to capture this generational growth opportunity," said Aaron Jagdfeld, Generac's President and Chief Executive Officer.

From thermal systems to backup generators, this week's reports put numbers on how far data center demand now reaches into the supply chain. Learn to read the setups behind moves like these with the free Stock Preachers guide, plus The Roadmap market reports, at equity-insider.com/sp.

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This article is independent news commentary. Equity Insider is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. MEL has not been paid by any company mentioned in this article. MEL and its owners, operators, directors, and affiliates do not currently own any shares of the companies mentioned in this article, but reserve the right to, and will, buy and sell shares of those companies at any time without further notice. Market and sector data cited are from Precedence Research (page updated Sept. 23, 2026), the U.S. Census Bureau's construction spending release of Oct. 1, 2026 (August 2026 data, preliminary), the U.S. Energy Information Administration's Short-Term Energy Outlook released Oct. 6, 2026, and Meta Platforms, Inc.'s third quarter 2026 results release dated Oct. 21, 2026. Company figures, guidance and quotes are from each company's results release dated Oct. 27 or Oct. 28, 2026; guidance is as stated by the companies and may change. Information is drawn from company news releases and filings, government and industry data, published reporting and third-party data believed to be reliable, but its accuracy is not guaranteed. Investing in securities carries risk, including the loss of some or all of your investment. This document is governed by the laws of Ireland.

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