Mark Zuckerberg's Meta and Other Hyperscalers Face a Major Bottleneck. Here Are 2 Industrial Stocks That Will Benefit

In October 2025, Mark Zuckerberg's Meta (NASDAQ: META) announced plans to build a 2-gigawatt data center. By July 2026, that data center's capacity had been upgraded to 5 gigawatts. Meta isn't the only company building huge data centers; Space Exploration Corporation (NASDAQ: SPCX) is leasing out AI computing power from what it calls Colossus I and Colossus II. Building these giant facilities is creating a huge tailwind for some far less technologically driven stocks, including Caterpillar (NYSE: CAT) and Eaton (NYSE: ETN).

Caterpillar's backlog is up by 79%!

Caterpillar makes earth-moving equipment and provides on-site power generators. Both are important for building artificial intelligence data centers. They are massive structures, so Cat's construction equipment is in high demand. And the electricity these buildings use is an increasingly contentious issue, making on-site power that doesn't drain the grid a huge opportunity, as well. Cat is already benefiting, with revenues up 22% in the first quarter of 2026 and adjusted earnings higher by 30%.

Image source: Getty Images.

However, the really big number is Cat's backlog, which stands at a record $63 billion. That figure is up 79% compared to the first quarter of 2025. This is basically future revenue for the company. It may be a boring industrial stock, but Cat is benefiting mightily from the high-tech AI sector.

Eaton's AI backlog is ramping up

Eaton makes electrical products for power management. It sells the infrastructure that, basically, forms the foundation of an AI data center. The company's business has been benefiting for years from the shift toward electrification, but AI has been a huge new opportunity.

For example, the company's Americas business division has seen its backlog grow by over 40% year over year, driven by demand for AI. Notably, order growth has expanded at a 60% clip. Eaton has been shedding older businesses to streamline its operations, which complicates the story somewhat. However, a strong backlog provides a fairly clear line of sight for future revenues and earnings. And given the benefits it is seeing from AI demand, Eaton looks well-positioned for future success.

There's one problem to consider

Wall Street is so focused on AI today that companies like Caterpillar and Eaton aren't flying under the radar. Cat's price-to-earnings ratio is a lofty 45x, while Eaton's is 38x. Value investors won't be interested. Still, the race to build AI data centers doesn't look anywhere near over, so the good news could easily keep going for these industrial giants. If you think AI will continue to grow, you may want to take a deeper look at each one.

Reuben Gregg Brewer has positions in Eaton Plc. The Motley Fool has positions in and recommends Caterpillar, Eaton Plc, and Meta Platforms. The Motley Fool has a disclosure policy.