Eaton and nVent Electric are capitalizing on the surge in AI data center construction, posting revenue gains that outpace many in the tech sector. Eaton's fiscal 2025 revenue climbed 10.3% to nearly $27.4 billion, with net income reaching about $4.1 billion. Meanwhile, nVent, smaller but growing faster, reported $3.9 billion in revenue, up 30% year-over-year, and net income close to $710 million.
Behind the Numbers
nVent’s Q1 2026 results stood out with organic sales growth hitting 34%, driven by an 80% jump in infrastructure sales compared to the previous year. Its backlog soared to a record $2.6 billion, signaling strong future revenue. Eaton experienced a 200% year-over-year surge in orders in certain segments during Q4 and strengthened its position in cooling solutions by acquiring Boyd Thermal, enhancing its liquid cooling offerings.
Though neither company is involved directly in cryptocurrencies or blockchain projects, their products are key for AI data centers, which in turn influence crypto mining. Firms like Iris Energy and Core Scientific are pivoting their mining operations to support AI workloads, benefiting from higher revenue per megawatt compared to traditional Bitcoin mining. Eaton and nVent’s infrastructure investments effectively support this shift.
Wall Street expects nVent’s revenue to reach around $4.98 billion in fiscal 2026, a 27.9% increase year-over-year, with strong net margins near 18.2% in 2025, hinting at profitable growth rather than mere expansion. Eaton manages the power distribution chain from the grid to the server rack, while nVent tackles thermal management challenges as compute density rises. Together, they address the two main bottlenecks in data center growth: power delivery and heat dissipation.
The main risk remains a potential slowdown in AI spending. Cuts to hyperscaler capital expenditures or shifts in AI investment sentiment could reduce new orders for both companies. However, nVent’s record backlog provides a cushion against immediate downturns. The evolving AI infrastructure landscape is also reshaping adjacent industries, including crypto mining economics.
