If you're wondering where all those AI models get their juice, Eaton Corp. (ETN) just placed a big bet on the answer. The power management company announced it's dropping over $50 million on a sprawling new Virginia facility, and investors liked what they heard—shares climbed on the news.
Here's the setup: data centers are proliferating faster than ever, fueled by AI workloads that demand enormous amounts of reliable electricity. Eaton plans to build a 350,000-square-foot manufacturing campus near Richmond specifically to produce the unglamorous but critical gear that keeps those facilities running—static transfer switches, power distribution units, and remote power panels.
The Numbers Behind the Expansion
The facility should create about 200 local jobs when it comes online in 2026. Virginia has seen a record number of new data center approvals this year, which helps explain why Eaton picked this location. The new campus will more than double the company's existing footprint in the Richmond area.
ETN stock has actually declined over 3% in the past year, though Wednesday's announcement pushed shares up 1.41% to $346.58. Investors looking for exposure can also consider the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID).
Broader Strategic Push
This Virginia investment isn't happening in isolation. Since 2023, Eaton has committed over $1.2 billion to North American manufacturing capacity. The company is positioning itself to capture demand not just from AI-driven data centers, but from the broader electrification wave reshaping infrastructure.
Consolidating and upgrading production for static power infrastructure means Eaton can deliver scalable solutions to customers dealing with increasingly intense AI workloads. Translation: as machine learning models get bigger and hungrier, someone needs to make sure the lights stay on.
Virginia Governor Glenn Youngkin praised the expansion, noting it demonstrates how local companies are stepping up to meet escalating power requirements. Henrico County's economic development officials emphasized the project strengthens both the region's manufacturing capabilities and its job market.
The takeaway? AI's computational demands aren't just a software problem—they're creating massive opportunities in decidedly physical infrastructure. Eaton is betting big that keeping data centers powered will be a growth business for years to come.