The AI Boom Needs Data Centres: 2 TSX Stocks to Watch Closely

BIP and Celestica are riding the AI data centre boom. Here’s why these two TSX stocks deserve a spot on your watchlist right now.

| More on:

Every artificial intelligence (AI) chatbot, every model training run, and every cloud workload needs to “live” in a data centre. And behind every data centre sits a long list of companies building the power, the networking gear, and the physical infrastructure that make it all work.

Two Canadian names, Brookfield Infrastructure Partners (TSX: BIP.UN) and Celestica (TSX: CLS), are part of this AI data centre boom. Here’s what investors need to know.

Data Center Engineer Using Laptop Computer crypto mining

Source: Getty Images

This TSX stock is a top AI pick

In the first quarter (Q1) of 2026, Brookfield Infrastructure reported funds from operations (FFO) of US$709 million, or US$0.90 per unit, an increase of 10% year over year. Its data centre segment grew FFO by 46% to US$149 million.

Chief Financial Officer David Krant said the growth was tied to the company’s U.S. bulk fiber network, acquired in Q3 of 2025, as well as organic growth across its data storage business. Brookfield also commissioned more than 200 megawatts of operating data centres into earnings over the past year.

Chief Executive Officer Sam Pollock told analysts BIP is deploying capital through a new US$5 billion strategic partnership to install up to one gigawatt of behind-the-metre power generation. That framework already has roughly US$1.6 billion in committed capital.

Pollock also flagged a planned initial public offering for the company’s data infrastructure business, Csquare, calling it a potential candidate for one of the year’s leading IPOs (initial public offerings), given strong cash flow and AI-sector tailwinds.

Brookfield is exploring whether to combine its partnership and corporation shares into a single security. Krant said the goal is a tax-free move that could boost liquidity and index inclusion.

Analysts forecast FFO per share to expand from US$3.32 in 2025 to US$4.51 in 2028. If the stock is priced at 12 times forward FFO, it could deliver close to 50% returns over the next three years, after accounting for dividends.

The bull case for this Canadian AI stock

Celestica held its annual shareholder meeting recently, where Chief Executive Officer Rob Mionis described 2025 as a year of disciplined execution and exceptional growth.

The company’s Connectivity and Cloud Solutions segment remains the key driver. Mionis said Celestica continues to capture growth by supporting hyperscalers building next-generation data centre infrastructure.

The company is a recognized market leader in 400G and 800G Ethernet switches, and it’s already delivering the next-generation 1.6T switching solutions.

Network speed is a bottleneck in AI infrastructure as data centers pack in more GPUs (graphics processing units) and the switches connecting them need to move data faster. Celestica’s early lead in higher bandwidth switching puts it in a strong position as hyperscalers upgrade their networks.

The company’s Advanced Technology Solutions segment is also performing well, built around an engineering-led strategy and specialized design centers. Mionis said the company remains a trusted technology partner capable of solving complex customer challenges.

Analysts tracking CLS stock forecast earnings per share to grow from US$6 in 2025 to US$19 in 2028. If the TSX tech stock is priced at 30 times forward earnings, it could return close to 70% within the next 30 months.

Celestica has transformed from a legacy electronics manufacturer into a genuine AI infrastructure play. Its networking leadership gives it a durable edge as hyperscalers race to upgrade capacity.

The bottom line for investors

AI infrastructure spending isn’t slowing down as demand for data centre capacity, power, and networking gear continues to climb. Investors looking to build a Canadian AI infrastructure watchlist should include both of these names.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and Celestica. The Motley Fool has a disclosure policy.

More on Tech Stocks

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

Canada’s Aerospace Boom Could Be Just Getting Started: Here’s the Stock I’d Buy

Canada’s aerospace hub in Montreal could benefit from surging global defence budgets, and CAE may be a key way to…

Read more »

A worker gives a business presentation.
Tech Stocks

OpenText Stock Is Down 42%: Here’s Why I’d Buy it After Canada’s Investment Summit

AI hype is everywhere, but OpenText could be the unflashy data “plumbing” that makes corporate AI actually work.

Read more »

Young Boy with Jet Pack Dreams of Flying
Tech Stocks

MDA Space Stock: How This Canadian Company Became a Space Sector Standout

MDA Space stock combines proven Canadian technology, a $4 billion backlog, and strong growth across satellites, robotics, and geointelligence.

Read more »

trends graph charts data over time
Tech Stocks

Celestica Stock Has Been on a Roller Coaster the Past Month: What’s Going On?

Celestica stock keeps swinging wildly. Here's what's really driving the volatility, and why the AI hardware maker's fundamentals still look…

Read more »

diversification and asset allocation are crucial investing concepts
Tech Stocks

The Market Has Punished This Stock Enough: I’d Buy Before Sentiment Turns

Constellation stock faced a significant downturn this September. Discover why the market is reacting to leadership changes and tariffs.

Read more »

Rocket lift off through the clouds
Tech Stocks

Nova Scotia Just Pitched 20 Projects to the World, and 1 Stock Could Win Big

Nova Scotia brought a menu of “investment-ready” mega projects to global capital, and MDA Space offers a TSX-listed way to…

Read more »

space ship model takes off
Tech Stocks

Canada’s Aerospace Boom is Taking Off: Here’s the TSX Stock to Buy Now

Canada’s aerospace boom is being fuelled by a new wave of defence spending, and Bombardier could be a direct TSX…

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

Celestica Stock Has Basically Doubled in the Past Year: Is It Too Late to Buy?

While dilution and a potential slowdown in AI spending remain risks, Celestica’s diversified business offers some protection.

Read more »