Morgan Stanley Says AI Data Centers Face a 38-Gigawatt Power Gap. These Industrial Stocks Fill It.

Morgan Stanley projects U.S. data centers will require 68 gigawatts of power by 2026-2028, creating a 38-gigawatt supply shortfall that positions industrial equipment suppliers for significant growth. The firm identifies GE Vernova (GEV), Eaton (ETN), and Vertiv (VRT) as prime beneficiaries of the AI infrastructure build-out.

The power gap stems from surging demand for data center capacity needed to support artificial intelligence workloads. Data centers require continuous, reliable power and sophisticated cooling systems—infrastructure that must be built now to meet capacity demands arriving in the next two to four years.

GEV supplies gas turbines and power generation equipment critical for new capacity. ETN provides electrical distribution and power management systems that route electricity within facilities. VRT specializes in thermal management and cooling systems essential for maintaining operational stability in high-density computing environments.

The 38-gigawatt shortfall represents roughly 10% of current total U.S. generating capacity, underscoring the scale of infrastructure investment required. Morgan Stanley's (MS) analysis frames AI data center expansion as a multi-year capital cycle with clear winners in the industrial supply chain.