AI-driven technology is advancing, but for investors concerned about potential overexposure, it can be challenging to avoid the big names in technology. Even those looking for investment targets that ignore technology may want greater diversification in other sectors. After all, energy, industrial, and other market segments are also doing very well.
It is indeed possible to build exposure to AI trends without relying too heavily on technical jargon. Companies that provide data center services and facilities, including construction work, have been growing even though they are not part of the technology sector. Subsidiary firms have the potential to continue to benefit as demand for AI remains strong, but it will not lead to more direct exposure to the technology.
Big Increase in Powell’s Demand, But Valuation May Be a Concern
Powell Industries Inc. NASDAQ: POWL designs and manufactures customized power control and distribution products in addition to a range of other automation, metering, and data acquisition systems. While the company typically serves clients in the energy, mining, and utilities sectors, it has focused more on data center clients.
Business appears to be picking up speed, based on two key projects the company won in Q2 2026, each worth more than $75 million, and a post-quarter data center award of more than $400 million.
Powell Industries Today
Powell Industries
As of 07/10/2026 04:00 PM Eastern
- 52 week interval
- $68.33
▼
$328.00
- Dividend Yield
- 0.16%
- The P/E ratio
- 45.44
- Target Value
- $236.67
This should help drive future revenue growth—the company’s $297 million in Q2 revenue was solid but only up about 6% year-over-year (YOY), so there’s plenty of room for improvement.
Gross margin declined modestly YOY, but backlog was large at $1.8 billion (up 33% YOY). The $490 million in new orders in the last quarter shows how much demand Powell’s products are, and they are increasing capacity in a sustainable way, which is self-financing without requiring a shareholder dilution.
The issue for investors may be whether the recent rally in POWL shares has room to operate—the stock has already returned nearly 120% year-to-date (YTD), and at a price-to-earnings (P/E) ratio of 45, it’s not exactly cheap. Analysts still like it overall, however, with four Buy and three Hold ratings.
Fast-Growing HVAC Firm Works to Build Capacity and Improve Margins
Cooling is a major engineering challenge for data centers, which must maintain ideal temperatures to avoid hardware malfunctions. Industrial HVAC firms like AAON Inc. NASDAQ: AAON has emerged as an important part of the data center industry as a result.
AAON’s latest financials show how important it is to data center builders and operators: in Q1 2026, the company recorded quarterly sales of nearly $497 million, up 54% YOY, and a backlog of $2.1 billion. This is more than double the backlog just one year earlier, underscoring the momentum in data center demand for HVAC products and services.
AAON today
As of 07/10/2026 04:00 PM Eastern
- 52 week interval
- $62.00
▼
$150.46
- Dividend Yield
- 0.35%
- The P/E ratio
- 79.83
- Target Value
- $112.00
As a result, AAON revised its outlook for the full year to 2026 and now expects about 40% to 45% in sales growth. Gross margin was a bit volatile earlier in the year—down 170 basis points YOY to 25.1%—but management sees it improving to a range of 27% to 28% by the end of 2026 as AAON works to build internal capacity. Meanwhile, capital expenditures (CapEx) will remain high, after $53 million in Q1 alone.
Like Powell, AAON has risen rapidly this year, rising nearly 48% YTD. Analysts still see it as a Buy, however, with four buy ratings and two hold ratings, despite little upside potential.
Steady Growth From EMCOR, Still Room To Run
While both of the above companies specialize in certain products or services that are important to data center maintenance, EMCOR Group Inc. NYSE: EME is a general electrical/data center construction contractor. Its services range from HVAC to electrical installation, fire protection, automation, and more.
EMCOR Group Today
- 52 week interval
- $540.00
▼
$951.96
- Dividend Yield
- 0.20%
- The P/E ratio
- 26.22
- Target Value
- $871.25
The company was able to meet the growing demand for its services—it experienced revenue growth of nearly 20% YOY to $4.63 billion in the first quarter of the year—while maintaining operating income of $404 million and improving diluted earnings per share (EPS) by nearly 30% YOY as well.
Even though manufacturing margins have been somewhat compressed, with the operating margin down to 10.9% from 11.9% a year earlier, this is likely due to continued diversification and transient activity rather than an inability to scale.
EMCOR enters the second half of the year with strong operating commitments and optimistic management, which sees full-year revenue reaching $18.5 billion to $19.3 billion alongside EPS ranging from $28.25 to $29.75.
EME shares are up 27% YTD, a modest gain over other companies on this list, and they still have another 12% upside potential according to analysts. Nine ratings of Buy and two of Hold suggest that Wall Street remains optimistic about EMCOR’s abilities to navigate a high-demand environment going forward.
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