Data Center Boom Lifts Results at Vertiv, Generac, Johnson Controls and American Tower
Spending on data centers is feeding through to the companies that supply their power, cooling and real estate. Four such suppliers reported quarterly results over two days, and three of them raised or initiated full-year outlooks, according to an Equity Insider News commentary.
- Vertiv reported Q3 net sales of $4,313 million, up 61%, with organic orders growth of over 100%, and raised its 2026 guidance.
- Johnson Controls reported a $23.0 billion backlog, up 43% organically, and initiated fiscal 2027 guidance.
- Generac signed a supply agreement with Amazon with initial deliveries expected to total $2.4 billion in 2027 and 2028.
- U.S. private data center construction spending hit a preliminary annual rate of about $84.95 billion in August 2026.
Four suppliers, strong quarterly numbers
Vertiv Holdings Co reported third-quarter net sales of $4,313 million, 61% higher than a year earlier. The figure reflects 55% organic sales growth and about 6% from acquisitions, along with organic orders growth of over 100%. Diluted EPS grew 91% to $1.95 and adjusted diluted EPS grew 78% to $2.21. The company raised its full-year 2026 net sales guidance by $650 million and now expects $14,650 million at the midpoint, with adjusted diluted EPS of $7.15. "We are in the middle of the largest infrastructure buildout and it's accelerating," said CEO Giordano Albertazzi.
American Tower reported third-quarter total property revenue of $2,734 million, up 4.5%. It cited 1.1% Organic Tenant Billings Growth and 16.3% cash revenue growth in its Data Centers segment. The company raised the midpoint of its full-year 2026 property revenue outlook by $55 million and now expects Data Centers segment property revenue of $1,218 million to $1,228 million. It also allocated $315 million to share repurchases in the quarter, and its board authorized an additional $2.0 billion afterward.
Johnson Controls reported fiscal fourth-quarter sales up 10% to $7.1 billion, with organic orders up 44% and a backlog of $23.0 billion. In the Americas, orders rose 58% and backlog reached $17.8 billion, up 54%. The company said sustained demand for data centers supported the increase. For fiscal 2027 it initiated guidance for organic sales growth of 11% to 12% and adjusted EPS of $6.15 to $6.30.
Generac reported third-quarter net sales up 16% to a record $1.29 billion. Commercial & Industrial external net sales rose about 28% to $552 million.
Generac's Amazon deal and backlog
Generac said it entered into an agreement with Amazon.com, Inc. that includes a long-term supply agreement for backup power generators for Amazon data centers. Initial deliveries are expected to total a combined $2.4 billion in 2027 and 2028. The company maintained its full-year 2026 net sales growth guidance in the mid-to-high teens percent range and now expects an adjusted EBITDA margin of approximately 20.5 to 21.0%, compared with previous guidance of 20.0 to 21.0%.
CEO Aaron Jagdfeld said the backlog for products to be sold to the data center market has grown to approximately $4.5 billion. He added that Generac continues to execute on previously announced capacity expansion plans to capture what he called "this generational growth opportunity."
The wider spending picture
The commentary points to several indicators behind the supplier results. U.S. Census Bureau data released on October 1 put private data center construction spending at a preliminary seasonally adjusted annual rate of about $84.95 billion in August 2026, up from $49.05 billion in August 2025. That is the highest monthly rate in the series, which begins in 2014, though the figure is preliminary and subject to revision.
Meta Platforms reported third-quarter capital expenditures, including principal payments on finance leases, of $34.91 billion. It narrowed its 2026 outlook for those expenditures to $135 billion to $145 billion, from a prior range of $130 billion to $145 billion. Meta said it is still developing its budget and capacity plans for next year.
On power, the U.S. Energy Information Administration said in its October 6 Short-Term Energy Outlook that it forecasts electricity demand from the commercial sector, which includes data centers, to grow steadily through 2027, by 2.8% year over year. Looking further out, Precedence Research predicts the global data center market will grow from USD 430.18 billion in 2026 to approximately USD 1,103.70 billion by 2035, a CAGR of 11.06%.
What it means
The reports show data center demand reaching well beyond chips and servers into thermal management, backup power and physical infrastructure. Order growth and backlogs at Vertiv, Johnson Controls and Generac suggest that demand is already translating into contracted work. Guidance, however, is as stated by the companies and may change, and the commentary itself notes that the August construction figure is preliminary. The article is independent commentary and states that it is not investment advice.
