AI Needs a Lot of Power. Here Are 3 Ways to Cash in on the AI Power Boom

Artificial Intelligence (AI) has rapidly evolved from a niche technological field into a transformative force reshaping industries, economies, and everyday life.

At the heart of this revolution lies an often overlooked but critical component: Power.

Behind every intelligent chatbot, autonomous vehicle, or AI-powered analytics engine is a massive amount of computational infrastructure that consumes extraordinary amounts of electricity.

Whether it's training large language models, running complex simulations, or powering real-time inference systems, AI is energy-hungry and it's only getting hungrier.

The explosive growth of AI technologies has triggered what many experts are calling an "AI power boom" i.e. a surge in demand for the energy, hardware, and infrastructure needed to fuel these systems.

Data centres are expanding at unprecedented rates. Utility companies are negotiating with tech giants to ensure sufficient energy supply.

And investors are pouring capital into anything that can support the computational backbone of AI, from power generation to semiconductor innovation.

This seismic shift is creating significant financial opportunities for those who recognise where the power behind AI is coming from and where it's going.

From utilities scaling up to meet the energy needs of AI clusters, to chipmakers racing to produce more efficient and powerful processors, to data centre operators expanding capacity at breakneck speed, the AI power boom is opening up entirely new frontiers for growth and profit.

In this editorial, we explore 3 ways to cash in on the AI power boom.

Read on...

#1 ABB India

ABB India Ltd (ABB) is an integrated power equipment manufacturer supplying the complete range of engineering, products, solutions and services in areas of automation and power technology.

The company is a subsidiary of ABB Ltd, a global leader in electrification and automation with operations in 100+ countries. It gains advantages from its parent company, including access to ABB's centralised R&D facilities, for which it pays royalties.

The company operates in 4 different business segments namely electrification (43% revenues), motion (34% revenues), process automation (18% revenues), and robotics (5% revenues).

Geographically, the company derives 90% of its revenues from the domestic markets and balance 10% from international sales. ABB India has a network of 28 sales offices and 750+ partners. It exports its products to 30+ countries.

The company operates 25 manufacturing plants across 5 locations in India. In March 2025, the company partnered with AI startup UptimeAI to enhance asset health and performance management in heavy industries.

ABB is supporting the introduction of AI with the rapid deployment of advanced power distribution and power protection solutions to data centres in North America, Europe and Asia-Pacific.

It's delivering new, medium voltage power protection architectures that maximize resilience and power continuity.

The share price of ABB India has returned a negative 33% on the back of muted operational and financial performance.

#2 Schneider Electric Infrastructure

Schneider Electric Infrastructure Limited (SEIL), incorporated in 2011, is engaged in the business of manufacturing, designing, building and servicing technologically advanced products and systems for the electricity network.

The product portfolio of the company includes transformers, power transformers, switchgears, medium voltage switchgear, protection relays, differential relay, electricity distribution management systems, a software suite for self-healing smart grid, e-House & smart cities applications.

The company has served a number of reputed clients such as Tata Projects, Ultratech Cements, BEL, IOCL, Siemens among others.

Schneider Electric has 4 manufacturing facilities at 3 locations: Vadodara (2), Kolkata (1) and Chennai (1). Its key end markets include power generation, transmission & distribution, oil & gas, metro, MMM and other electro Intensive segments, etc.

The company derives 92% of its revenues from sale of products and services, 7% its revenues projects, 1% from others. The company derives 84% of its revenues domestically and the balance 16% of revenues are from exports.

SEIL offers AI-based solutions that transform energy management and automation in industries, unlocking sustainability and efficiency. The company is leading the digital transformation of energy management and automation.

SEIL's share price has returned 4% over the past one year on the back of muted financial and operational performance.

#3 Cummins India

Cummins India Ltd is a part of the Cummins Inc. Group USA.

It designs, manufactures, distributes, and services diesel and alternative fuel engines from 2.8 to 100 litres, diesel and alternative-fuelled power generator sets of up to 3,000 kW (3,750 kVA), as well as related components and technology.

Cummins India has 2 major business divisions in India viz. engines business division (69% revenues) and lubes business division (31% revenues).

Geographically, the company derives 70% of its revenues from the domestic market and balance 30% from international markets. The company exports its products to the US, UK, Mexico, Singapore, and China.

It's a provider of backup power solutions for the data centre industry, with the largest dedicated support network coverage in the world. The company provides generation systems in various segments, such as AI infrastructure, IT/ITES, data centres, reality, healthcare.

Cummins has deep expertise in power generation and a long history of collaboration with the world's largest tech companies.

The share price of Cummins India has been flat in the last one year on the back of muted operational performance.

Conclusion

The rapid ascent of AI is not just a tech story; it's an energy story.

As AI applications become more sophisticated and widespread, the demand for the power infrastructure that supports them is growing exponentially.

Training and deploying large-scale AI models, managing high-density data centres, and running AI-powered industrial systems all require immense, consistent, and resilient energy support.

As this boom unfolds, it's becoming increasingly clear that those who supply the power literally and figuratively stand to benefit the most.

Companies that provide the foundational elements of AI's energy ecosystem are positioned to capture enormous value as demand accelerates.

The recent share price performance of the companies mentioned here is not a reflection of their long-term potential. These firms are laying the groundwork for future growth, innovating at the intersection of energy and intelligence, and forming the backbone of AI's physical infrastructure.

For investors, the message is clear: The AI revolution won't just be powered by algorithms, it will be powered by electricity, hardware, and resilient infrastructure.

As always, investing decisions should be guided by individual risk tolerance, financial goals, and proper due diligence.

Remember the challenges before diving headfirst.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...