Illustration of a data center surrounded by icons representing power lines, cooling systems, industrial machinery, and network connections, showing how multiple sectors are tied to its growth.
Illustration of a data center surrounded by icons representing power lines, cooling systems, industrial machinery, and network connections, showing how multiple sectors are tied to its growth.

Business By June

The data center surge is now pulling in industries far beyond tech, from power to manufacturing. If a colleague or investor you know follows infrastructure trends, this may be worth sending their way.

Data center boom lifts broad market rally Story flow and key facts

CNBC’s Jim Cramer has declared the data center trade a defining force in today’s stock market, saying it now drives performance across a wide range of sectors beyond big tech. Once a niche investment theme, exposure to data centers is now linked to some of the market’s strongest performers, from semiconductor testers to industrial power equipment makers. Cramer highlighted that data centers act as 'giant mouths' consuming vast amounts of electricity, creating demand across power, cooling, networking, and real estate.

The S&P 500 recently hit a record above 7200, fueled by this broad-based rally. Companies like Quanta Services (PWR), Teradyne (TER), and Caterpillar (CAT) are benefiting as AI-driven computing growth expands. Cramer described the trend as a 'manufacturing mosaic,' showing how deeply infrastructure is woven into the AI buildout.

This shift signals that the economic impact of AI is no longer confined to software or chipmakers. Instead, it’s lifting industrial suppliers, utilities, and construction firms. As data centers require constant power and physical infrastructure, the ripple effects are spreading across the economy—making the data center a central hub of investment activity.

Facts

  • Jim Cramer stated the data center trade has gone mainstream, dividing the market into 'data center stocks and everything else'.
  • The S&P 500 reached a record above 7200, driven by broad gains in sectors tied to data center expansion.
  • Companies like Quanta Services (PWR), Teradyne (TER), and Caterpillar (CAT) are seeing increased investor interest due to AI infrastructure demand.
  • Cramer described data centers as 'giant mouths that must be fed with never-ending electricity'.
  • He called the trend a 'manufacturing mosaic,' showing how AI infrastructure benefits power, cooling, networking, and real estate sectors.

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