If you think that you’ve already missed the opportunity to benefit from the data centre boom, you might be wrong. As artificial intelligence (AI) fuels demand for more computing power, investors may find attractive opportunities beyond the companies directly developing AI technology.
In this article, I’ll rank three Canadian data centre stocks based on their growth potential and explain why they’re worth considering right now.
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Celestica stock
Celestica (TSX: CLS) takes the top spot on my list, mainly because of its impressive growth and increasing role in the AI infrastructure market. This Toronto-based firm mainly provides hardware and supply chain solutions, including networking equipment and servers used in data centres.
After falling 28% in October, CLS stock is now down 9% year to date. With this, it currently trades at $369.32 per share with a market cap of $46.6 billion.
What’s interesting is that this weakness in its share price comes even as Celestica’s business continues to expand at an incredible pace, making it look undervalued. In the third quarter, the company’s revenue surged 83% year-over-year (YoY) to US$5.8 billion, driven by strong customer demand. The company’s adjusted earnings also more than doubled to US$3.30 per share.
And this growth doesn’t appear to be slowing anytime soon. Although the company recently lowered its 2026 free cash flow forecast from US$600 million to US$460 million due to higher working capital investments, these investments should support its long-term growth.
Given its strong earnings momentum and recent stock price weakness, I consider Celestica the most attractive Canadian data centre stock to buy right now.
Hammond Power Solutions stock
The second stock I’d put on this list is Hammond Power Solutions (TSX: HPS.A), which is benefiting from something every data centre needs – a dependable electricity supply. This Guelph-based company makes transformers and other electrical equipment used across various industries.
Unlike Celestica, Hammond stock has had a strong year, gaining 44% despite a 19% decline in October. It currently trades at $229.88 per share with a market cap of $2.1 billion. At that market price, it also offers a small 0.5% dividend yield.
One big reason behind investors’ interest in Hammond stock is its rapidly growing business. In the third quarter, its revenue more than doubled to $446.3 million with the help of higher data centre shipments and the addition of AEG Power Solutions. Its gross margin for the quarter improved to 34.4% from 30.1% due partly to higher production and better operating efficiencies.
At the end of the quarter, Hammond’s power magnetics order backlog was over 61% higher than a year ago, mainly due to large data centre projects.
With strong demand for electrical equipment and new growth opportunities from AEG, Hammond could continue delivering solid results.
Brookfield Corporation stock
Brookfield (TSX: BN) comes third on my list, but it’s an interesting choice for investors who want to benefit from data centre growth without focusing entirely on technology or electrical equipment. This Toronto-based investment giant has operations spanning infrastructure, energy, asset management, and other businesses.
BN stock has declined 13% year-to-date to $54.87 per share, giving it a market cap of $134.6 billion and a 0.7% dividend yield.
Despite this share price weakness, Brookfield’s underlying business continues to perform well. In the second quarter, the company’s earnings rose 15% YoY, helped by growth across its businesses.
Recently, Brookfield expanded its US$25 billion partnership with Bloom Energy to supply fuel-cell power solutions for data centres. Besides that, Brookfield ended June with US$210 billion of capital available for investment across its businesses and managed funds.
While Brookfield offers less direct exposure to data centres than the other two stocks, its massive investment resources and growing infrastructure opportunities make it a really appealing long-term buy.
