3 Great Stocks to Buy to Benefit From the Next Generation of AI Data Centers Led by Nvidia

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The explosive growth of artificial intelligence (AI) applications is not only driving a boom in data center investment, but also changing their design. Nvidia is driving the movement toward a new generation of 800-volt direct current (VDC) data centers set to launch in 2027. The change in architecture will have ramifications for AI data center infrastructure companies and, according to Barclays analyst Julian Mitchell, could positively impact three stocks he has buy recommendations on. Here's a look at them. The shift to the new data centers enables the use of a 576 graphics processing unit (GPU) architecture rather than the current 72 GPU architecture. To create space in the IT rack to do this, it's necessary to create a stand-alone power center rather than have power conversion take place in the rack. In a nutshell, the 800 VDC data centers reduce the number of power conversions by converting 13.8 kV alternating current (AC) from the grid to 800V as it enters the data center, then distributing it directly to a power shelf, which steps it down to 48V for use by GPUs. This saves significant space compared to legacy data centers that use bulky AC-to-DC converters in the IT rack.

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Nvidia-led surge in AI demand is accelerating a shift to 800 VDC next-generation data centers targeted to be operational by 2027. To enable 576 GPU configurations instead of the current 72 GPU per rack, the architecture removes in-rack power conversion and moves to separate power shelves. Converting 13.8 kV AC at the entrance down to 800V and then stepping down to 48V reduces power-conversion stages and equipment volume, freeing rack space. As a result, demand for power shelves and DC-DC equipment, high-voltage components, and data center design and construction is expected to rise, benefiting related infrastructure and GPU suppliers; Barclays' Julian Mitchell recommends stocks tied to this transition.

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