AI Needs Power and Servers: 2 Stocks I’d Buy Right Now

AI needs electricity and systems that actually work, and Hydro One plus CGI offer two Canadian ways to invest in that backbone.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 24, 3:45 pm EDT

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Key Points

Hydro One benefits from rising Ontario power demand by expanding and upgrading the regulated grid while paying a steady dividend.
CGI helps companies modernize data, cloud, and security so AI projects can succeed, supported by a large backlog and steady EPS growth.
Neither is a pure AI moonshot, but together they balance defensive infrastructure with practical tech services exposure.

Artificial intelligence (AI) can’t run in a vacuum. It needs electricity, servers, and data moving through complicated systems without breaking down. That’s why the AI boom may reward more than the obvious chip stocks. For Canadian investors, two TSX names offer a practical way into the same trend: Hydro One (TSX: H) and CGI (TSX: GIB.A).

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies — Source: Getty Images

H

Hydro One owns and operates electricity transmission and distribution assets across Ontario. The company doesn’t build data centres or design AI models. It moves the electricity that homes, businesses, factories, and future digital infrastructure need. As Ontario’s electricity demand rises, Hydro One’s grid becomes more important.

Ontario’s system operator now forecasts electricity demand to rise 65% over its planning period. Data centres sit among the more variable drivers, along with electric vehicles (EV) and other new sources of load. In other words, the grid needs to prepare for a future with much more power demand and far more uncertainty.

Hydro One gives investors a steadier way to invest in that buildout. In the first quarter of 2026, the company reported earnings per share (EPS) of $0.56, up from $0.49 a year earlier. It also invested $840 million in capital projects during the quarter. Those investments help maintain and expand the system, and over time they can support rate-base growth.

The dividend adds to the appeal. Hydro One pays a quarterly dividend of $0.35 per share yielding 2.5% at writing. All while trading at 25% times earnings. The risk comes from regulation and interest rates. Hydro One must work with regulators to earn returns on its assets. Higher borrowing costs can also squeeze utilities because they fund large projects with debt. The stock probably won’t deliver explosive gains but offers electricity infrastructure for a power-hungry economy.

GIB

CGI stock brings the server and software angle. The company provides IT consulting, systems integration, managed services, cloud, cybersecurity, and business-process support. That might sound less exciting than owning a chipmaker, but plenty of businesses still need help moving from old systems to modern platforms before they can use AI properly.

AI projects don’t work well if companies sit on messy data, outdated systems, weak security, or fragmented cloud tools. CGI stock helps clients modernize those systems and turn technology spending into practical business outcomes. It also works across government, financial services, health, manufacturing, utilities, and other sectors where clients need reliability more than buzzwords.

The latest quarter showed steady growth. In Q2 fiscal 2026, CGI stock reported revenue of $4.2 billion, up 3.3% from last year. Diluted EPS rose 10.6% to $2.09. Backlog also stood at $31.5 billion, or 1.9 times annual revenue. That backlog gives the business a nice cushion, especially when clients take longer to approve new projects.

CGI stock has also leaned into AI partnerships. In April, it announced a strategic collaboration with Amazon Web Services to accelerate trusted AI, secure cloud adoption, and implement digital transformation across the U.S. public sector. Meanwhile, it offers a small dividend of $0.68 annually, or a 0.8% yield.

Bottom line

AI needs more than one kind of investment. Hydro One offers the power backbone. CGI stock offers the technology backbone. One stock brings regulated infrastructure and dividends. The other brings consulting, cloud, and AI services. And even a small investment of $7,000 can be enough to start compounding returns.