3 Canadian Infrastructure Stocks Built for the Electrification Wave

As the world shifts to cleaner energy and builds out new infrastructure, these Canadian stocks have some of the best growth potential.

Key Points
  • The electrification wave—driven by AI/data‑centres, EVs, and grid modernization—is set to boost long‑term electricity demand and infrastructure spending.
  • That trend favours power generators and utilities (e.g., Northland Power’s renewables pipeline and yield ~3.3%, and Fortis’s regulated stability) as core investment plays.
  • Equally important are suppliers and infrastructure‑support companies (like Stella‑Jones and transformer/equipment manufacturers), which should benefit as grids are upgraded and expanded.

Over the last few years, the electrification wave has become one of the biggest long-term investment themes in the global economy.

Between the rapid growth of artificial intelligence, billions of dollars being invested in data centres, and the continued push toward cleaner and more reliable sources of electricity, demand for power is expected to keep climbing for years to come. That’s creating significant opportunities for many Canadian infrastructure stocks and the companies that support them.

At the same time, governments are investing heavily in modernizing electrical grids, improving energy security, and expanding infrastructure capable of supporting future growth. And that’s creating opportunities well beyond traditional utility companies.

That’s why high-quality utility stocks like Fortis (TSX: FTS) continue to be a top choice for investors looking for companies that can benefit from the electrification trend.

Not only is Fortis a popular investment for many Canadians due to its predictability and reliability, but as one of Canada’s largest regulated utilities, it should also continue benefiting from growing electricity demand for decades to come.

As popular as Fortis is, though, it and other utility stocks like it are just one piece of the puzzle.

In fact, as the electrification wave continues, opportunities are emerging across the entire economy, from the companies generating electricity to the businesses supplying the infrastructure needed to deliver it.

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Canadian power generators have massive long-term growth potential

If electricity demand continues growing the way many expect, there’s no doubt the world will need far more generating capacity than it has today.

Artificial intelligence alone is expected to require enormous amounts of electricity as new data centres continue to be built around the world.

And even before the AI boom, the shift to cleaner energy, the growth of electric vehicles, the electrification of more industries, and population growth all pointed to rising demand. So it’s easy to see why electricity demand is expected to remain strong for years to come.

That’s why companies that generate power are so well-positioned. Whether it’s from natural gas, renewable energy, or nuclear, many Canadian stocks have years of growth potential as new infrastructure continues to be built.

That’s why a stock like Northland Power (TSX: NPI), which builds and operates renewable energy assets, is one of the top Canadian infrastructure stocks to consider for exposure to the electrification wave.

Not only does Northland already have several projects under construction that are expected to come online in the coming years, but the economics of renewable energy continue to improve, and countries around the world are still investing heavily in expanding generation alongside more traditional power sources.

Plus, like Fortis, Northland doesn’t just offer long-term growth potential; it also pays investors to wait, with the stock currently yielding roughly 3.3%.

Canadian stocks that support infrastructure businesses could be hidden gems

Generating more electricity is important, but it’s still only part of the story. Once that power is produced, it still needs to travel through transmission lines, substations, transformers, utility poles, and countless other pieces of infrastructure before it reaches homes, businesses, factories, and data centres.

That creates a tonne of opportunities for investors to buy Canadian stocks that support the infrastructure buildout.

For example, businesses that manufacture transformers, electrical equipment, transmission components, and other specialized products could all benefit as utilities continue upgrading and expanding their networks over the next decade.

So, whether it’s a company that helps manufacture transformers or a stock like Stella-Jones (TSX: SJ) that supplies utility poles and other infrastructure products which utilities rely on every day, demand for these products should continue growing as more investment flows into the grid.

The Foolish takeaway

The electrification wave may sound like a lot of hype, but it’s also a trend that’s likely to play out over decades.

And while a reliable utility stock like Fortis is still a solid option, and one many investors will want to own as a reliable core holding, it’s still just the tip of the iceberg when it comes to the long-term opportunity investors have.

If you want to take full advantage of the long-term growth potential as electricity demand continues to rise and infrastructure is built out, there are plenty of high-quality, high-potential Canadian stocks with the opportunity to benefit for years.

Fool contributor Daniel Da Costa has positions in Northland Power. The Motley Fool recommends Fortis and Stella-Jones. The Motley Fool has a disclosure policy.

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