Eaton is poised to benefit from the data center expansion, reporting a record backlog with a 70% increase in data center orders. The company acquired Boyd’s thermal business to enhance its cooling solutions. Demand from energy and AI megatrends is driving growth in data center-related solutions, positioning Eaton for success.

Eaton offers power management products globally, focusing on electrical solutions for various industries. Its backlog in the Electrical Americas segment reached a record $12 billion, driven by strong demand in aerospace and data centers. The company anticipates growth from data centers, distributed IT, and electric vehicles markets, with a recent $9.5 billion acquisition to boost capabilities.

With its key role in power and electric grid solutions, Eaton presents a solid investment opportunity for those looking to capitalize on AI and data center growth. Analysts expect double-digit growth for the company in the coming years, making it an attractive pick-and-shovel play for investors. Considerations from the Motley Fool Stock Advisor team suggest potential for significant returns with the right investment choices.

Read more at Nasdaq: Should You Buy Eaton While It’s Below $360?