Data Centre Spending Is Heating Up: 2 Canadian Stocks to Buy

The real data-centre boom isn’t just AI chips, but the industrial power and logistics backbone that makes servers run.

Key Points
  • Hammond Power Solutions benefits from surging demand for transformers and power gear used in data centres and beyond.
  • Granite REIT can win from higher industrial rents as data-centre supply chains need more warehousing and logistics space.
  • Together they offer a “picks-and-shovels” way to play data centres, with income while you wait for growth.

Investors might believe that data centre stocks mean investment in artificial intelligence. They’re not wrong. But it’s the behind-the-scenes investment that truly makes a data centre investment sing.

Data centres run on power, buildings, transformers, cooling, logistics, and a mountain of industrial infrastructure. That’s where the investment story gets interesting. AI may sit at the centre of the boom, but the money won’t flow only to chipmakers and cloud giants.

Canada could see years of demand tied to data centres, grid expansion, and industrial real estate. That creates room for overlooked TSX winners. Two Canadian stocks that could benefit are Hammond Power Solutions (TSX: HPS.A) and Granite Real Estate Investment Trust (TSX: GRT.UN).

data center server racks glow with light

Source: Getty Images

HPS

Every data centre needs reliable electricity. A server farm can’t afford weak power systems. It needs transformers, power-quality equipment, and electrical infrastructure that can handle heavy, constant demand. Hammond makes dry-type transformers, power quality products, and related electrical equipment for industrial and commercial customers.

That puts it right in the path of a bigger power buildout. Data centres need more than one plug in the wall. They need equipment that helps move, manage, and stabilize electricity across complex sites. Utilities, factories, renewable projects, mining operations, and industrial customers also need many of the same products. So Hammond doesn’t depend only on data centres to grow.

The latest results already look strong. In the first quarter of 2026, Hammond reported record quarterly sales of $265 million, up 31.5% from last year. The company also improved gross margins from the fourth quarter of 2025. Those numbers show demand hasn’t cooled, even after a strong run for the stock. All together, Hammond gives investors a practical way to play data-centre growth without betting on one technology cycle.

GRT

Granite REIT offers a steadier angle. It doesn’t own data centres, but owns industrial and logistics properties across North America and Europe. That may sound one step removed, but data-centre growth creates a large physical supply chain.

Think about everything that needs to move before a data centre opens. Electrical gear, cooling systems, backup power equipment, steel, cable, construction materials, and replacement parts all need storage and distribution. Suppliers need space, contractors need locations, and logistics networks need room to expand. Granite owns the kind of industrial real estate that can benefit from that broader buildout.

Its latest results showed why income investors keep watching it. In the first quarter of 2026, Granite reported net operating income of $134.2 million, up from $125.7 million a year earlier. Occupancy also stayed high, and the REIT continued to sign leases at higher rents than expiring agreements.

That pricing power matters. Industrial real estate still benefits when tenants need well-located space and don’t have endless good options. Granite also pays monthly distributions, which can appeal to investors who want income while waiting for long-term growth.

Bottom line

Hammond and Granite offer a pair of complementary stocks. Hammond sits closer to the electrical backbone. Granite sits closer to the physical real estate and logistics network. Neither stock needs investors to chase the loudest AI name on the market, but both provide stellar income even with $7,000 invested.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
HPS.A$322.6021$1.10$23.10Quarterly$6,774.60
GRT.UN$93.8974$3.55$262.70Monthly$6,947.86

Data-centre spending could become one of the biggest infrastructure stories of the next decade. The winners may not all look like tech stocks. Some may look like old-fashioned industrial companies and real estate owners. Hammond Power Solutions and Granite REIT fit that idea, and both could give Canadian investors a smarter way to buy into the buildout.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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