Bank of America Reiterated Buy Ratings on Infrastructure Firms
Analysts maintained positive outlooks on data center equipment suppliers despite rising community opposition to new projects.
Updated on Sept. 20, 2026 in Data Centers
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Bank of America has reaffirmed its Buy ratings for seven major industrial infrastructure companies, citing robust demand from hyperscale AI site developers. The positive outlook persists even as analysts highlight increasing permit delays and community pushback as potential headwinds.
Why it matters
The analysis underscores the tension between massive demand for AI-ready infrastructure and the difficulty of delivering projects in a tightening regulatory environment. Increased public concern over resource usage is forcing developers to make new commitments regarding electricity, water, and noise.
Eaton has secured approximately $5 billion in data center orders this year, while GE Vernova reported second-quarter revenue of $11.1 billion against a record $176 billion backlog. Vertiv, meanwhile, projects full-year 2026 sales between $13.5 billion and $14.0 billion.
The players
Bank of America
This multinational investment bank and financial services holding company provides global research and corporate banking services.
Vertiv
This company specializes in digital infrastructure, providing power and thermal management solutions for data centers.
GE Vernova
This global energy company focuses on electrification and power generation equipment, including turbines and grid solutions.
Eaton
This power management company provides energy-efficient electrical components and grid infrastructure for industrial applications.
The details
Firms like Eaton, GE Vernova, and Vertiv supply critical electrical, thermal, and generation equipment necessary for hyperscale AI facilities. Despite strong order books, these companies face operational challenges as local authorities, including those in Loudoun County, Virginia, consider pausing new applications due to infrastructure and community concerns.
Timeline
March 4, 2026: The White House announced the Ratepayer Protection Pledge.
Late July 2026: Vertiv reported a second-quarter revenue miss.
September 15, 2026: Loudoun County proposed a 12-month pause on new data center applications.
September 17, 2026: Bank of America published its latest research note reiterating Buy ratings.
The Tech Race
This sector-wide demand is currently tethered to the White House Ratepayer Protection Pledge, which highlights how growing AI energy demands are drawing significant scrutiny from both the public and government entities. The current push for infrastructure highlights a shift from rapid expansion to managing the physical and social limitations of power capacity.
For the average consumer, these infrastructure investments are essential for maintaining the stability and reliability of the electrical grid as demand surges. Increased local permit delays may lead to slower project completions, which could influence the speed at which new digital services and AI technologies are deployed in local markets.
The takeaway
The sustained demand for data center infrastructure suggests that the AI boom continues to drive significant capital expenditure despite local pushback. Readers should monitor how municipal permit decisions might influence the timeline and regional deployment of these energy-intensive facilities.
Further reading
Explore the ongoing expansion of the nation's digital backbone in our section on Data Centers.
Source note: This article includes information reported by The Tribune.
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Should companies building AI data centers be required to pay for their own electricity grid upgrades?
