Analysts Back Data Center Firms Despite Growth Hurdles
Bank of America reiterated buy ratings on key infrastructure providers as local permit delays create new project risks.
Updated on Sept. 20, 2026 in Data Centers
Live Poll
Should companies building AI data centers be required to pay for their own electricity grid upgrades?
Bank of America issued a research note on September 17, 2026, maintaining positive ratings for seven major data center infrastructure suppliers. This outlook persists even as local permit delays and public opposition intensify, particularly in regions like Loudoun County, Virginia.
Why it matters
Infrastructure providers face a complex landscape where record-breaking demand from hyperscale AI sites clashes with increasing community scrutiny regarding energy, water, and noise. Balancing these logistical and political obstacles is now the primary determinant of whether booked orders reach completion.
Vertiv maintains a 2026 sales guidance of $13.5 billion to $14.0 billion despite a 17% share price drop following a second-quarter revenue miss. Meanwhile, GE Vernova reported second-quarter revenue of $11.1 billion backed by its record backlog.
The players
Bank of America
A global financial institution providing equity research and investment banking services.
Vertiv
A provider of critical digital infrastructure, including thermal and power management systems for data centers.
GE Vernova
An energy technology company focused on power generation, electrification, and grid infrastructure.
Eaton
A power management company supplying electrical components and energy distribution equipment for industrial sites.
The details
Infrastructure companies provide the electrical distribution, thermal cooling systems, and power generation units required by hyperscale sites—massive facilities housing thousands of servers for cloud and AI services. These vendors are currently navigating public commitments to manage utilities, as developers face pressure from initiatives like the White House Ratepayer Protection Pledge. Permit delays arise when local governments, such as those in Loudoun County, introduce pauses to evaluate site density and resource impact.
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 research note.
The Tech Race
The White House Ratepayer Protection Pledge establishes the regulatory framework within which developers now negotiate local infrastructure capacity. This development follows a pattern where national policy pressures incentivize infrastructure firms to formalize community-focused commitments.
While these shifts do not directly change retail consumer products, the 12-month permit pause in major hubs like Loudoun County could eventually constrain regional power availability for new tech projects. Stakeholders should monitor if other local jurisdictions follow this model of extended application reviews.
The takeaway
Investment in infrastructure remains high, but execution is increasingly tied to navigating local land-use politics and utility consumption limits. Watch for upcoming municipal filings in Virginia and Georgia that may indicate whether the 12-month permit pause model gains broader legislative support.
Further reading
For broader trends in industry expansion, visit the Data Centers section.
Source note: This article includes information reported by The Tribune.
Live Poll
Should companies building AI data centers be required to pay for their own electricity grid upgrades?
