"The data center and power sectors are booming because of the global AI race but, quietly, so too is the electrical distribution equipment industry that connects the electricity to the Big Tech campuses. That's why Forgent Power Solutions-a combination of four legacy companies put together by private equity-was branded less than a year ago and quickly went public with a successful initial public offering in February, growing to a market cap of nearly $8 billion."
"The data center segment is growing the fastest right now, and Niederpruem expects that to continue, noting the data center sector was largely cloud-based for the past 20 years, which remains a growth area. "The AI piece has come on relatively recently, and it's just icing on the cake. There's no doubt AI has added an accelerant," he said. After all, Forgent's order backlog had quickly grown by 45% near the end of 2025."
Forgent Power Solutions formed by combining four legacy electrical-distribution companies has rapidly grown through private-equity consolidation and a fast IPO, reaching nearly $8 billion market capitalization. The company supplies transformers, switchgear, transfer switches, and prefabricated solutions to data centers, power grids, and industrial customers. Data-center demand, recently accelerated by AI deployments, is the fastest-growing segment and drove a 45% increase in Forgent's order backlog near the end of 2025. Forgent differentiates with bespoke, early-planning engagement and rapid delivery to meet detailed specifications, competing against larger incumbents like Vertiv, Eaton, Schneider Electric, and GE Vernova.
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