Google, Amazon Increase Data-Center Capacity Plans

Bernstein says North American data-center project plans accelerated sharply in June, with the pipeline rising 4% month over month and 44% year to date as hyperscale cloud firms expand capacity for AI workloads. Alphabet’s Google added 1.8 GW and Amazon added 1.4 GW to their road maps, while Texas led regional growth. The firm also notes stranded capacity is rising because of local NIMBY opposition, which could delay projects and pressure margins for builders and infrastructure suppliers. Still, Bernstein remains constructive on several beneficiaries across electrification, industrials, communications infrastructure, and AI semiconductors, reinforcing buy/outperform ratings on names such as Eaton, Vertiv, Equinix, AMD, Broadcom, and Nvidia. The report suggests ongoing demand for data-center buildout should support related hardware, power, and semiconductor stocks, but execution risks from permitting and community pushback may temper the upside.