The artificial intelligence (AI) revolution isn’t just happening in Silicon Valley. It’s being built brick by brick, cable by cable, and megawatt by megawatt across several geographies, including on Canadian soil. The hyperscaler data centre capital expenditures’ explosive, AI-driven growth is reflected in record-breaking annual budgets and the single-project commitments that rival the annual spend of previous years. Some well-positioned TSX infrastructure stocks will see revenue, earnings, and cash flow grow as data centres flourish.

In 2026 alone, global AI hyperscalers may invest between US$700 billion and US$800 billion ($988 billion–$1.1 trillion) on data centre infrastructure projects, up from about US$400 billion in 2025. These data centres will require massive gigawatts of energy to power them up, daily.

Canadian investors looking to capitalize on this multi-billion-dollar data centre buildout don’t need to chase volatile tech megacaps anymore. High-quality TSX-listed infrastructure companies that supply critical power generation and electrical distribution hardware stand ready to ride this multi-year wave. Capital Power (TSX:CPX) stock and Hammond Power Solutions (TSX:HPS.A) are two standout Canadian infrastructure stocks that may continue to win big from the data centre boom.

Capital Power Corporation

AI data centres are notorious energy hogs, requiring colossal amounts of reliable power. Capital Power Corporation has stepped up as a primary energy partner for tech giants building next-generation digital infrastructure. On July 8, 2026, Capital Power officially secured a landmark long-term energy supply agreement (ESA) with Meta Platforms. Under the agreement, Capital Power will supply 250 megawatts of capacity to power Meta’s new $13 billion AI data centre development in Sturgeon County, Alberta.

This contract, which evolved directly from a preliminary framework signed in late 2025, secures predictable, high-margin cash flows for the TSX utility and power infrastructure stock over the next decade.

Capital Power is a formidable independent power producer boasting roughly 12 gigawatts of generation capacity across 35 facilities, including natural gas, renewables, and battery storage. Crucially, management reported having approximately two gigawatts (2GW) of underutilized infrastructure in May, giving the utility ample capacity to contract additional high-yield deals as new data centre builds come online.

Furthermore, CPX has teamed up with Apollo Global Management on a US$3 billion investment partnership targeting U.S. natural gas assets to support growing grid demands.

Management targets an 8% to 10% compound annual growth rate in adjusted funds from operations (AFFO) per share through 2030. This cash flow expansion supports a top-tier dividend profile. Capital Power’s current dividend yields 3.9% and management has raised the payout for 12 consecutive years. New data centre power supply deals may follow in the future after a recent Meta validation.

Although a forward P/E of 31 sits above CPX stock’s historical average following a 22% rally this year, the long-term revenue visibility from hyperscale contracts makes CPX a premium stock to buy and hold for dividend growth investors.

Hammond Power Solutions stock

Hammond Power Solutions provides the critical pick-and-shovel hardware required to manage the energy supplied to data centres. It manufactures custom dry-type and power transformers essential for power conditioning and distribution inside AI data centres. Regardless of which tech giant wins the AI revenue growth race, every single megawatt of server capacity requires custom transformers before connecting to the grid, and Hammond Power’s integrated power solutions business is competitive in this space.

Hammond’s operational strength recently propelled it to an official entry into the S&P/TSX Composite Index in June 2026. Financial momentum remains stellar. During the first quarter, revenue grew 31.5% year-over-year to $265 million. Custom data centre applications heavily drove revenue growth. Adjusted earnings per share rose nearly 30% and Hammond Power’s order backlog grew 94.6%.

To meet soaring demand, Hammond Power has expanded its footprint with a new manufacturing facility in Mexico. The plant began deliveries earlier this year. In June, the company completed a strategic $365 million acquisition of AEG Power Solutions. The deal establishes a new integrated electrical solutions (IES) business unit that should capture higher-margin, system-level demand. Bolstered offerings from Hammond Power should fortify its data centre power moat and accelerate revenue growth.

Hammond Power stock’s valuation multiples have reset following a 23% consolidation from its recent highs during the past two months. The stock’s forward P/E has reset to a much more attractive 30 times. New investors have a cheaper buying opportunity into this long-term growth stock.

The post 2 Canadian Infrastructure Stocks Poised to Win From Data Centres appeared first on The Motley Fool Canada.

More reading

• Canada’s AI Boom Needs Far More Electricity: These TSX Stocks Could Provide It
• Here’s How This Canadian Company Could Profit From the Data Centre Boom
• This Steal of a Utility Stock Can Bring in $1,283 a Year!
• I Think These 3 TSX Stocks Could Turn $30,000 Into $300,000
• Here’s How This Canadian Company Could Profit From the Data Centre Boom

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool recommends Capital Power and Meta Platforms. The Motley Fool has a disclosure policy.