2 Under-the-Radar AI Data Center Stocks to Buy Now

Artificial intelligence (AI) may be the headline today, but behind every new AI model is a very physical problem.

Where do you put all that computing power, and how do you keep it powered and cool? As computing density rises, data centers need more sophisticated electrical equipment, liquid cooling, and thermal-management systems. And with operators racing to bring capacity online, anything that can make these facilities faster and more efficient is becoming increasingly valuable.

Trane Technologies plc (TT) and Eaton Corporation plc (ETN) are positioned specifically within this area. The two companies recently teamed up on a new system that coordinates power and cooling infrastructure for high-density AI data centers, giving investors another way to benefit from growing AI data center demand without having to rely on the usual chip stocks.

Their jointly developed reference design was created for Nvidia Corporation's (NVDA) DSX AI Factory architecture and combines Trane’s thermal-management equipment with Eaton’s medium-voltage power-distribution systems. The companies estimate that the design could improve energy efficiency by about 15%, cut installation costs by up to 30% and reduce copper use by as much as 80%, although actual results will vary by installation.

More importantly, the standardized approach could shorten project timelines by reducing the need to engineer power and cooling systems separately for each facility. The architecture can also adapt to emerging liquid-cooling and direct-current power technologies.

With global data center capacity expected to nearly triple by 2030, with AI expected to drive roughly 70% of that surge, the opportunity is hard to overlook. Better yet, both Trane and Eaton are dividend-paying companies whose stocks have posted solid gains in 2026.

So, rather than chasing the obvious AI names, let’s take a closer look at these two under-the-radar data center plays that could be wise buys now.

AI Data Center Stock #1: Trane Technologies

Founded in 1885 and headquartered in Swords, Ireland, Trane Technologies is a global climate solutions company focused on heating, ventilation, air conditioning and refrigeration. With a market cap of $102 billion, the company serves residential, commercial and industrial customers across major global markets. Its portfolio spans HVAC, refrigeration, building management, energy efficiency, automation and smart climate solutions, with well-known brands including Trane and Thermo King.

TT stock has had a strong run in 2026, climbing from a January low of $348.06 to an all-time high of $505.87 in June. Shares are up 16.92% year-to-date (YTD), reflecting growing investor confidence in Trane Technologies’ role in the rising demand for high-efficiency HVAC systems. Strong commercial demand, improving industrial activity, and growing interest in data center cooling infrastructure have all helped keep the stock moving higher this year.

When it comes to valuation, TT stock is not exactly trading at a bargain. Shares are priced at 30.40 times forward adjusted price-to-earnings and 4.30 times sales, putting the stock above both sector averages and its own historical medians.

But investors are also getting a long track record of returning cash. Trane Technologies has paid a quarterly dividend for over 30 consecutive years and is set to pay $1.05 per share on Sept. 30. That works out to an annualized payout of $4.20 and a modest 0.88% yield. Its steady dividend history adds another layer of appeal for investors seeking dependable returns.

Trane Technologies came into the second half of the year with plenty of momentum. In its July 30 Q2 report, the company posted $6.4 billion in revenue, up 11% year-over-year (YOY), while adjusted EPS climbed 11.1% to $4.31. Both numbers came in ahead of expectations, helped by strong commercial HVAC demand and solid execution.

Organic bookings jumped 37%, pushing backlog to a record $12.1 billion, roughly 70% higher than a year ago. That gives Trane a healthy cushion of future business, particularly as demand for commercial HVAC and data center infrastructure continues to build.

The company ended June with $1.32 billion in cash, but it has already been putting that capital to work. Through July, Trane deployed or committed about $1.9 billion, including $690 million toward dividends, $340 million for acquisitions and investments, and $840 million on share repurchases. Management remains on track to deploy $2.8 billion to $3.3 billion of capital in 2026, while capex is expected to run at 2% to 3% of revenue as the company expands capacity and invests in innovation.

And management is feeling confident enough to raise its outlook. Full-year reported revenue growth is now expected at approximately 11.5%, while adjusted continuing earnings guidance has been lifted to a $15.20 to $15.30 per-share range.

Commercial HVAC remains the star, with strong bookings, a robust pipeline and record backlog, particularly across data centers and other key verticals. Residential is also getting an upgrade after a strong first half, although management expects more modest growth in the second half. Trane is entering the back half of 2026 with a fuller order book, stronger execution and higher expectations.

Analysts tracking Trane Technologies project the company’s revenue for fiscal 2026 to be $23.71 billion, with EPS expected to reach $15.31, up 17.2% YOY. It is anticipated to grow another 13.7% annually to $17.41 in fiscal 2027. 

Wall Street’s outlook on TT stock is mostly optimistic, with a consensus “Moderate Buy” rating overall. Of 23 analysts covering the stock, 13 recommend a “Strong Buy,” and 10 suggest a “Hold.”

The average analyst price target of $533 indicates a potential upside of 16.9% from the current price levels. The Street-high price target of $585 suggests that TT stock could rally as much as 28.3% from here.

AI Data Center Stock #2: Eaton Corporation

Founded in 1911 and headquartered in Dublin, Ireland, Eaton Corporation is a global power management company helping businesses, industries, and communities manage energy more efficiently and reliably. Its operations span Electrical Americas, Electrical Global, Aerospace, Vehicle and eMobility, giving it exposure to everything from power distribution and circuit protection to aerospace systems and electric-vehicle technologies.

Eaton’s portfolio includes electrical components, power quality equipment, hydraulic systems, aircraft controls, fuel systems, vehicle transmissions and hybrid technologies. With operations across the Americas, Europe, and Asia Pacific, Eaton serves customers across industrial, aerospace, automotive, commercial, and infrastructure markets. Its market capitalization currently stands at $167.53 billion.

Shares of the power management company have been having a pretty good year, and the market has had plenty of reasons to keep the momentum going. Shares climbed to a record $478 on Aug. 12, as investors continued to bet on the company’s role in powering the AI data center boom, grid modernization and the broader buildout of electrical infrastructure. Solid financial results, record backlogs, and strategic deals, including the acquisition of Boyd Thermal, have added more fuel to the story.

The rally has cooled a bit since then, with ETN stock now 10.9% below its peak. Still, zoom out and the picture remains impressive. Shares are up 21.4% over the past 52 weeks, have gained 33% so far in 2026 and are up 13.9% over the past three months.

Lately, though, the stock has given back some of those gains. ETN saw a sharp sell-off during the day, wiping out some recent progress and bringing key support levels into focus. For now, the pullback looks more like a pause after a strong run rather than a sign that the bigger upward trend is falling apart.

Eaton’s growth story comes with a price tag. ETN stock currently trades at 31.92 times forward adjusted price-to-earnings and 5.12 times sales, putting it above both sector averages and its historical medians. So, investors are clearly paying a premium for Eaton’s exposure to AI data centers, grid upgrades and electrical infrastructure.

But there’s also a steady-income angle here that should not be overlooked. Eaton has been paying dividends for more than three decades and has increased its payout for 16 consecutive years. The company is set to pay a quarterly dividend of $1.10 per share on Aug. 28. That works out to a $4.40 per-share dividend annually, giving ETN stock a 0.97% yield.

Eaton’s latest financial results gave investors another reason to pay attention. ETN stock jumped 7.32% on July 31 after the company delivered stronger-than-expected second-quarter numbers. Revenue reached $8.5 billion, up 21.4% YOY, while adjusted EPS climbed 6.4% annually to $3.15.

Digging a little deeper, the growth story gets even more interesting. Organic revenue increased 14% annually, while acquisitions contributed another 7%. Data centers remained a major growth driver, but Eaton also saw solid demand across its other served markets. Both electrical businesses delivered double-digit organic growth, while acquisitions added further momentum.

The backlog tells a similar story. Electrical-sector backlog jumped 43% YOY, while Aerospace backlog rose 28% annually, pointing to healthy demand across some of Eaton’s key markets.

Management is keeping the outlook upbeat, expecting full-year organic growth of 11% to 13% and adjusted EPS between $3.46 and $3.56.

Analysts are also looking for continued growth, with fiscal 2026 revenue expected to rise 19.3% YOY to nearly $32.74 billion. EPS is projected at $13.55, up 12.3% annually, while fiscal 2027 EPS is expected to reach $15.89, representing another 17.3% annual growth.

Wall Street is highly bullish overall, with a consensus “Strong Buy” rating for ETN – an upgrade from a “Moderate Buy” rating three months ago. Out of the 24 analysts covering the stock, 17 recommend a “Strong Buy,” two advise a “Moderate Buy,” and the remaining five analysts are playing it safe with a “Hold.” 

The average analyst price target of $484.09 indicates a potential upside of 13.6% from the current price levels. However, the Street-high target of $534 suggests that the stock could surge as much as 25.4%.