The explosion of artificial intelligence (AI) is having a ripple effect on the nation's power grid. The need for more data centers to operate the flood of AI-powered platforms is growing fast -- and will likely accelerate.
Goldman Sachs Research puts it this way: A top-of-the-line AI system in 2022 contained eight graphics processing units (GPUs) in a single server. That's all the power that was needed at the time.
But by 2027, a top AI system will require an estimated 576 GPUs in a server the size of a filing cabinet. And that system will demand 600 kilowatts of power, which is the equivalent power needed for 500 homes.
Grand View Research estimates that the global data center market was valued last year at $347.6 billion and will grow to $652 billion by 2030 -- a compound annual growth rate of 11.2%. Personally, I think those are conservative estimates.
But for investors, the growth of data centers and the proliferation of AI platforms is an incredible investment opportunity. Here are three stocks that I believe are among the best positioned to benefit from the data center build-out.
Image source: Getty Images.
Nvidia
Nvidia (NVDA +0.04%) is the undisputed leader in GPUs and will be the biggest beneficiary in the data center build-out. Nvidia's GPUs are the most highly sought-after in the industry, propelling the company's massive growth over the last three years. Nvidia stock is up 1,440% in that period as the company achieved a $5 trillion market capitalization.
Most of Nvidia's profits are from data center sales -- in its fiscal 2026 second quarter, data center revenue was $41.1 billion of the overall $46.7 billion. And it's continuing to grow quickly, up 56% from a year ago.
NASDAQ: NVDA
Key Data Points
Nvidia has an estimated 92% market share in high-end data center GPUs, but the company's not sitting on its laurels. CEO Jensen Huang announced at the company's GTC D.C. conference in October that it's partnering with more than a dozen quantum computing companies to build accelerated quantum computers -- the next evolution of computing that is destined to replace traditional computers one day.
Taiwan Semiconductor Manufacturing
While Nvidia is earning money hand over fist designing better GPUs, Taiwan Semiconductor Manufacturing (TSM 0.95%) is going to make a fortune by building them. TSMC, as it's known, is the world's leading fabricator, counting Nvidia, Apple, Broadcom, Qualcomm, and Advanced Micro Devices among its many customers.
NYSE: TSM
Key Data Points
Research by The Motley Fool shows that high-performance computing is an increasingly important part of TSMC's business, rising to 57% of its total revenue from 39% just three years ago.
And despite being based in Taiwan, 76% of the company's quarterly revenue came from North American companies. That's increasingly important as corporations navigate tariff and trade concerns -- TSMC can mitigate many of those issues with its massive $165 billion investment in a series of fabs in Arizona.
ASML
My final pick here is the Dutch company ASML (ASML 1.25%), which has a unique position of its own in the semiconductor and data center space. ASML is the world's only company that mastered the use of extreme ultraviolet (EUV) lithography technology to build tiny components and circuits that are used in making chips. Foundry operators TSMC, Samsung, and Intel all use ASML's EUV technology.
NASDAQ: ASML
Key Data Points
ASML announced it sold 66 new lithography machines in the third quarter. Net sales were 7.5 billion euros ($8.61 billion), unchanged from a year ago. The company issued guidance for the full year calling for total net sales to be about 15% more than a year ago.
ASML stock is trading near all-time highs, up 53% so far in 2025.
A bet on data center infrastructure
As the demand for more power and more data center infrastructure increases, there are plenty of ways for investors to play the space. For my money, I like these three names the best, as each has a powerful position that will be exceptionally difficult for any competitor to duplicate. Nvidia, Taiwan Semiconductor, and ASML are the backbone of AI infrastructure, providing chips, foundry, and lithography. The AI era can't happen without them.
