2 Canadian Stocks That Could Quietly Profit From Data Centre Expansion

Data centres need reliable power and heavy-duty equipment, creating opportunities in TSX names beyond traditional tech stocks.

Amy Legate-Wolfe

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. Before joining Motley Fool Canada, she 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. 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 25, 4:10 pm EDT

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Key Points

Northland Power can benefit from rising electricity demand, with improving cash flow and a more sustainable monthly dividend.
Finning can gain from construction and backup-power needs through Caterpillar equipment sales and high-margin service work.
Both stocks are execution- and cycle-sensitive, so project delays or a slowdown in spending could hit results.

10 stocks we like better than Finning International

The data centre boom needs more than buildings. It needs power, backup systems, equipment, and service teams that can keep critical assets running when downtime isn’t an option. That creates a wider opportunity for Canadian investors than the usual technology names suggest.

Two TSX stocks worth watching in this case are Northland Power (TSX:NPI) and Finning International (TSX:FTT). Both sit near important parts of the buildout, so let’s get into it.

Data center woman holding laptop — Source: Getty Images

NPI

NPI stock owns and develops renewable power, natural gas, offshore wind, and battery storage assets across several markets. Data centres need enormous amounts of electricity, and that demand keeps pushing utilities, governments, and private companies to secure more supply.

NPI stock has a useful mix. Its renewable assets can serve customers looking for cleaner power. Its natural gas facilities can help meet demand when the grid needs flexible generation. Its battery storage pipeline also matters, because power systems need more tools to balance supply and demand as renewable energy grows.

The latest results showed a stronger start to 2026. NPI stock reported first-quarter revenue of $775 million, up from $665 million last year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $427 million from $361 million. Free cash flow (FCF) per share climbed to $0.70 from $0.60.

NPI stock now pays a monthly dividend of $0.06 per share, or $0.72 annually yielding about 3.2% at writing. That lower payout gives the company more room to fund projects, manage debt, and deal with construction demands. For income investors, the cut hurt. For long-term investors, the reset may make the business more sustainable.

The risk comes from execution. NPI stock has large offshore wind projects under construction, including Baltic Power and Hai Long. Big projects can face delays, cost pressure, and financing challenges. Power prices and weather can also affect results. Still, if data centres keep lifting electricity demand, NPI stock should have more opportunities to sell power into a hungry market.

FTT

Finning offers a less direct, but still compelling, angle. The company is the world’s largest Caterpillar dealer. It sells, rents, and services equipment across Canada, South America, the United Kingdom, and Ireland. That includes heavy equipment for construction and mining, as well as power systems that can support industrial customers.

Data centres depend on reliable backup power. They also need major construction work, site preparation, and ongoing service support. Finning can benefit through equipment sales, rentals, parts, engines, generators, and maintenance. The company doesn’t need to own a data centre to profit from the spending around it.

The latest quarter showed why Finning deserves attention. Revenue reached $2.5 billion, while adjusted earnings per share (EPS) hit a record first-quarter level of $1.02. Equipment backlog reached a record $3.8 billion at the end of March, up 20% from the end of 2025. That backlog gives the company strong visibility into future demand.

Finning also raised its quarterly dividend by 7.4% to $0.33 per share, marking its 25th consecutive year of dividend growth and bringing the current yield to 1.3%. That record says a lot about management’s confidence and the durability of its product support business.

The risks, however, are cyclical. Finning depends on construction, mining, energy, and equipment demand. If customers delay projects, revenue can slow. Inventory also tied up cash in the latest quarter. Still, the company has a strong service base, a growing machine population, and demand tied to infrastructure spending.

Bottom line

Northland and Finning aren’t the first names most investors think of when data centres come up. That’s exactly why they’re interesting. One helps supply the power. The other helps supply the equipment and backup systems. Both provide ample income even with a $7,000 investment.