The global data center industry is in high gear, rapidly innovating to meet skyrocketing demand from cloud computing and data-intensive applications such as energy-hungry generative AI. As digital needs grow, so do the requirements for efficient cooling, reliable power, robust security, and advanced AI processing capabilities.
Within every industry — such as data centers — there are always subindustries and niche businesses. We used our platform and selected a few subindustries and examined the leading companies for those looking to invest or anyone interested in what’s happening behind the scenes.
Data Center Security
Security is paramount in data centers, which house sensitive information for enterprises worldwide. Companies like Honeywell, Fortinet, and Palo Alto Networks offer robust solutions to ensure comprehensive physical and cybersecurity:
- Honeywell provides sophisticated surveillance and access control systems that safeguard against unauthorized entry.
- Fortinet delivers firewall and encryption solutions to secure data both at rest and in transit.
- Palo Alto Networks uses AI-driven cybersecurity to detect and neutralize threats in real time, protecting against increasingly complex cyber risks.
We took a sneak peek at Honeywell’s Cyndx profile for a quick pulse check on its portfolio and deal history — and got a clear view of its recent performance trends. One of the biggest takeaways? The size of its’ investment have increased exponentially since 2022.
In an era of frequent data breaches, these hybrid security solutions provide data centers with the protection essential to maintaining trust and operational integrity. Companies like Honeywell stand to gain significantly by delivering these specialized services.
AI and Machine Learning Infrastructure
Data centers are evolving to meet the processing demands of generative AI and machine learning applications, which require specialized hardware and software. Leaders like Nvidia, Google (Tensor Processing Units), and AMD are at the forefront of this transformation:
- Nvidia’s GPUs are designed to handle the complex computations required for AI and deep learning.
- Google’s TPUs are purpose-built for high-efficiency machine learning, available through Google Cloud for enterprises with heavy AI workloads.
- AMD’s EPYC processors deliver high-speed data handling, essential for data centers supporting advanced AI and ML.
According to Finder, Nvidia boasts a portfolio of 202 companies, with a median investment size of $55 million. Its impressive roster of co-investors highlights a strategic focus on AI, including high-profile investments like OpenAI.
As new forms of AI reshape technology at an unprecedented pace, companies like Nvidia are empowering data centers to stay ahead of future demands in AI and data analytics.
Power and Energy Management
Reliable power is the foundation of data center operation, and the need for uninterrupted power supplies (UPS) and renewable energy sources is only increasing. Companies like Eaton, Littelfuse, and EnerSys lead in providing efficient, scalable solutions for continuous power:
- Eaton offers UPS systems that can be paired with renewable energy sources, enhancing sustainability.
- Littelfuse specializes in high-performance circuit protection and power control solutions that safeguard electronics and industrial systems from electrical hazards and ensure operational reliability.
- EnerSys focuses on high-performance energy storage systems that ensure reliable power for critical applications in telecommunications, aerospace, and industrial sectors.
We dove into our platform for a side-by-side assessment of how these three comparable companies are stacking up.
One of the biggest takeaways from our comparables view of the companies? The Dublin-based Eaton Corp is a giant in this space with an enterprise value of roughly $140 billion.
With demand for data processing growing, these companies help ensure data centers can operate around the clock with minimal environmental impact.
Cooling Solutions
Data centers generate immense heat, making efficient cooling essential to prevent downtime and equipment failure. Traditional air cooling is being supplemented with advanced techniques like liquid and immersion cooling. Key players innovating in this area include Vertiv, Schneider Electric, and Johnson Controls:
- Vertiv provides adaptive thermal management systems designed to handle high-density server environments, optimizing energy use.
- Schneider Electric’s EcoStruxure integrates cooling with power management for seamless efficiency.
- Johnson Controls combines traditional cooling with advanced tech to meet the needs of high-density and legacy data centers alike.
A quick Cyndx Finder search of Schneider Electric reveals the company has a $142.61 billion enterprise value, backed by $1.6 million in total funding and 112 strategic acquisitions in digital energy management and automation.
The cooling solutions offered by companies like Schneider Electric aim to cut operational costs, extend equipment life, and improve overall sustainability, all of which are becoming critical as data centers grow larger and more powerful.
Driving Innovation
As demand for digital infrastructure continues to surge, the data center industry is seeing groundbreaking innovation. From advanced cooling solutions to renewable power integration, robust security, and AI-ready hardware, data centers are evolving rapidly. The leading companies driving these changes — Vertiv, Eaton, Honeywell, Nvidia, and more — are not only keeping up with demand but setting new standards for efficiency, resilience, and sustainability.
For investors, backing companies that lead in cooling, power management, security, or AI infrastructure can be a strong play in the digital-first economy.
The data center industry is brimming with opportunities. Get to know the leading players driving this growth.
