3 Stocks to Buy as Data Centre Demand Sends Spending Higher

AI data centre spending is spilling into the real economy, and these three TSX stocks touch different parts of that buildout.

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Key Points
  • Stantec can benefit early as data centres drive more engineering, design, and infrastructure planning work.
  • Russel Metals can win if higher construction and power-project activity boosts steel demand, shipments, and pricing.
  • CCL Industries is a less direct play, but labeling, tracking, and specialty materials can grow as supply chains get more complex.

The data centre bill keeps growing. Artificial intelligence (AI) doesn’t just need chips and code. It needs land, engineering, steel, equipment, labels, tracking, packaging, power systems, and buildings that can handle enormous demand. That spending won’t flow to one kind of company. It should spread across the industrial economy.

That’s why Stantec (TSX: STN), Russel Metals (TSX: RUS), and CCL Industries (TSX: CCL.B) deserve a closer look, as each touches a different part of the spending wave.

Data center servers IT workers

Source: Getty Images

STN

Stantec provides engineering, design, environmental, architecture, and consulting services. Data centres need all of that before construction even starts. That makes Stantec more than a general infrastructure stock. It can benefit as governments, utilities, and private companies spend more on power, grid upgrades, water systems, transportation, and digital infrastructure. Data centres add pressure to all those areas.

The company’s latest results show strong demand. Stantec reported first-quarter net revenue of $1.7 billion, up 9.1% from last year. Its backlog reached a record $9 billion. That backlog gives investors a useful sign that clients keep moving ahead with projects, even in a higher-cost environment.

Stantec also offers a dividend of 0.94%, so investors buy it more for growth than income. The main risk comes from valuation and execution. The stock has already earned respect, so it doesn’t trade like a forgotten bargain. Large projects can also face delays. Still, if data-centre spending pushes more money into infrastructure planning, Stantec should remain well placed.

RUS

Russel Metals brings the materials angle. Data centres need steel. So, do substations, electrical infrastructure, generators, cooling systems, warehouses, and related industrial projects. Russel Metals doesn’t depend only on data centres, but higher infrastructure and industrial spending can support demand for its service centres and value-added processing.

The company operates one of the largest metals distribution networks in North America. It sells steel, aluminum, and other metal products through service centres, energy field stores, and steel distributors. It also processes metal products for customers, which can improve margins when demand stays firm.

Its first-quarter results were strong. Russel Metals reported record quarterly revenue of $1.4 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $124 million. The attraction here comes from leverage to real-world construction and manufacturing. If companies keep building power infrastructure, warehouses, factories, and data-centre-related sites, Russel Metals can benefit from higher shipments and better pricing. Management also pointed to solid demand, tariffs limiting some international supply into North America, and higher steel and aluminum prices.

CCL

CCL Industries is the least obvious name here, but it still fits the broader spending theme. The company is the world’s largest label company, with operations across labels, specialty packaging, films, RFID-related systems, and industrial applications. Data centres and AI infrastructure need identification, tracking, security, functional labels, electronics-related components, and specialized materials. CCL’s exposure gives it a place in that wider supply chain.

CCL’s first-quarter 2026 sales rose 2.8% to $1.94 billion. Growth was modest, but the business remains highly diversified and global. Therefore, CCL doesn’t need data centres alone to drive results. It can grow through healthcare, specialty packaging, labels, acquisitions, and productivity improvements.

The company also has a long history of building through acquisitions. That can create value when management buys well and integrates carefully. The risk, though, comes from weaker consumer demand, currency moves, and slower end markets. CCL also doesn’t offer the cleanest data-centre exposure, so investors should treat it as a broader industrial and specialty materials play.

Bottom line

Together, these three stocks show how wide the data centre spending cycle could become. Stantec can help plan the infrastructure. Russel Metals can supply the steel and metal products. CCL can support the labelling, tracking, identification, and specialty material needs that come with more complex industrial systems.

The AI story may start in software, but the money keeps moving into the physical world. For TSX investors, that makes Stantec, Russel Metals, and CCL three stocks worth buying as data centre demand sends spending higher.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends CCL Industries, Russel Metals, and Stantec. The Motley Fool has a disclosure policy.

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