The company powering 32 gigawatts of American data centers

AMERICANMADE

Forget SpaceX, Elon Is Now Powering the Next Hot IPO

While everyone was distracted by the SpaceX IPO, Elon Musk quietly started backing a NEW AI startup…

That has been called "the fastest-growing business in the history of capitalism."

Even though this has nothing to do with robots, self-driving cars, and rockets…

It's growing faster than Tesla… faster than SpaceX… and even 23 times faster than Nvidia.

Click here and Jeff Brown will give you its name, completely free of charge… and show you how to claim a stake for as little as $50.

A single data center can drink more power than a small city. Not in a year. In a day.

Right now, 32 gigawatts of new data center capacity is under construction in America. That’s enough electricity to power 24 million homes.

And every one of those data centers needs the same thing... power gear.

Switchgear. Transformers. Breakers. Cooling systems. The stuff that moves electricity from the grid to the chip.

One company makes all of it. And its order book just exploded.

Eaton Corporation posted record first quarter results in May. Revenue hit $7.5 billion. That’s up 17% from a year ago. Adjusted earnings came in at $2.81 per share. Another record.

But here’s the number that stopped me cold.

Data center orders in Eaton’s biggest unit jumped 240% in one quarter. Not 24%. Two hundred and forty percent.

Let me put that in plain English. For every $1 in data center orders Eaton had last year... it now has $3.40. That kind of surge doesn’t happen by accident.

Here’s the setup.

America’s biggest tech companies plan to spend roughly $690 billion on AI this year. Most of that money goes to data centers. And data centers can’t run without power equipment.

Eaton calls its approach “grid to chip.” It makes the gear that connects the power grid all the way down to the server rack. Nobody else covers the full chain like that.

In March, Eaton paid $9.5 billion for Boyd Thermal. Boyd makes liquid cooling systems for data centers. Now Eaton can cool the chips it already powers. That’s a big deal.

It also partnered with NVIDIA. Together they launched the Beam Rubin DSX platform. It’s a blueprint for building AI factories at massive scale. Think of it as a turnkey power system for the next wave of AI data centers.

The backlog tells the whole story.

Eaton’s electrical backlog grew 48% year over year. Its Electrical Americas orders surged 42% on an organic basis. That word matters. Organic means the growth isn’t from acquisitions. It’s pure demand.

And here’s where it gets interesting...

Eaton is building to meet that demand. The company has 12 new factories ramping up right now. One is a $30 million switchgear plant near Omaha, Nebraska. It will span 370,000 square feet and hire 200 workers. Production starts in 2027.

Nearly 3,000 new data centers are planned or under construction across the U.S. Each one needs switchgear. The U.S. switchgear market is set to nearly double — from $17.8 billion in 2024 to $31.8 billion by 2034.

Eaton posted $27.4 billion in revenue last year. That was a record. This year, it should top $30 billion for the first time.

Now, here’s the part most people miss.

Eaton’s margins dipped in Q1. Segment margins fell 120 basis points to 22.7%. The stock dropped 3% on the earnings call. Wall Street got nervous.

But the dip was planned. Eaton front-loaded the startup costs for those 12 new factories. Management says margins will climb through the second half. They expect Electrical Americas to exit 2026 above 30%.

Think about that. A company with a record backlog... spending heavily to build capacity... while margins are about to snap back.

That’s the bet.

A $9.5 billion acquisition takes time to digest. Boyd Thermal is a great fit on paper. But integration always brings surprises.

If AI spending slows, Eaton’s order book could cool fast. At 31 times forward earnings, any miss gets punished.

But the tailwinds are massive. Hyperscalers are spending at a record pace. The U.S. grid needs a generational upgrade. And Eaton sits right in the middle of both trends.

Full-year guidance calls for adjusted earnings of $13.05 to $13.50 per share. That’s roughly 10% above 2025. Organic revenue growth should land between 9% and 11%.

The stock trades near $400 a share. The forward P/E is about 31. Not cheap. But for a company growing earnings at double digits with a 48% backlog surge... I’d call it fair.

The dividend adds a nice kicker. Eaton pays $1.10 per quarter. That’s about 1.1% yield. Not huge. But it’s steady.

Grid to chip. Record backlog. Twelve new factories. A partner in NVIDIA. That’s a bet I’m watching very closely.