nVent Electric (NVT) Elevated to Buy as Data Center and Power Infrastructure Demand Surges

nVent Electric plc (NVT) has been upgraded to a Buy following clear evidence of improving fundamentals in its core data center and power infrastructure segments. The company’s electrical distribution and thermal management systems are increasingly critical for next-generation data centers, where power density is rising sharply to support AI workloads. Recent project wins in North America and Europe signal sustained demand, with infrastructure contracts expanding by 22% year-over-year in the third quarter of 2025. The shift toward on-premise and edge data centers—particularly those serving AI training and inference—has intensified the need for reliable, high-capacity power solutions. nVent’s product portfolio, including its N-TEK and Hubsan series, is well-positioned to meet these requirements. The company reported a 19% increase in segment revenue from data center-related orders during the same period, outpacing broader industrial growth trends. Analysts note that nVent’s capital expenditure visibility extends into 2026, with over $3.8 billion in confirmed and pending infrastructure projects tied to digital transformation and renewable integration. This long-term order backlog provides financial stability and supports margin expansion, particularly in its Industrial and Infrastructure segments, which now account for 68% of total revenue. The upgrade reflects broader market momentum in industrial technology, as global spending on power systems and data center infrastructure is projected to grow at a 12.7% CAGR through 2030. nVent’s strategic positioning in high-growth niches makes it a beneficiary of this trend, with potential upside in both earnings and valuation if execution remains strong.