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Investing.com -- Barclays has identified leading U.S. stocks in the data center construction materials sector as hyperscaler capital expenditure continues to surge.
The firm’s technology team projects annual AI infrastructure spending from Western hyperscalers and AI labs could surpass $1 trillion before peaking in 2028, driven by the ongoing AI arms race.
Barclays analyzed over 400 public and private companies playing essential roles across 19 digital and power infrastructure subcategories, highlighting nine top picks in data center construction materials.
The company offers a connected portfolio of aggregates, precast concrete, and subterranean water and power infrastructure for data sites, positioning it as one of Barclays’ top picks in the sector.
Ferguson distributes above ground materials including HVAC and plumbing, as well as below the ground materials for data centers and surrounding infrastructure.
Several analyst firms have updated their outlook on Ferguson Enterprises, with Morgan Stanley raising its price target to $280, Jefferies to $300, and Bernstein to $310. The firms cited factors including the company’s fiscal guidance and growth in the data center market.
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The company supplies specialized AI-optimized concrete mixes and advanced roofing systems designed specifically for data center campuses.
Vulcan delivers construction aggregates and aggregates-intensive downstream products required for building data center shells and surrounding infrastructure.
The company supplies essential aggregates including crushed stone, sand, and gravel for foundation work and power generation sites supporting data center operations.
Martin Marietta recently completed an asset exchange with Quikrete, acquiring several aggregates operations and $450 million in cash. Following the deal, Jefferies raised its price target to $785 and RBC Capital increased its target to $630.
Advanced Drainage Systems supplies water management solutions, including pipe used for drainage and infrastructure for data centers and surrounding areas.
The company provides single-ply roofing membranes and building envelope solutions essential for protecting high-value data center assets.
Core & Main distributes below the ground water infrastructure for data centers and surrounding infrastructure.
The company provides advanced insulation technologies directly integrated into data center builds.
Barclays notes that these companies serve critical pick-and-shovel roles in the expanding data center infrastructure buildout, with potential additional upside from sovereign AI initiatives and China before the anticipated 2028 peak.
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