Analysts See Comfort Systems Benefiting from AI Infrastructure Build-Out

Land and Houses Securities Public Company Limited rates Infraset Public Company Limited, or INSET, and WHA Utilities and Power Public Company Limited, or WHAUP, as poised for continued growth from the expansion of the Data Center business and rising production capacity, and sees them as stocks with catalysts from new investment projects in the period ahead. For INSET, the analyst maintains a buy recommendation with a target price of 5.25 baht, expecting profit in the second half of 2026 to accelerate steadily, particularly in the third quarter of 2026, which has the potential to grow both quarter on quarter and year on year. The key driver comes from the gradual recognition of revenue from six Data Center projects in hand, with a combined size of approximately 335 MW. At the same time, there is remaining revenue from the Trading business still to be recognized of about 290 million baht. INSET's latest backlog has risen to approximately 5.7 billion baht after securing additional new work, and the company is in the process of bidding on another four to five large projects with a combined value of approximately 10 billion baht. If it wins this work, it would be upside to the backlog and profit forecasts, and would help extend the growth of operating results into 2027. As for WHAUP, the analyst gives a buy recommendation with a target price of 8.80 baht and expects profit in 2026 and 2027 to grow outstandingly and continuously, driven mainly by revenue and capacity revenue from the water business, especially the increase in water usage from Data Center customers, as well as the recovery of the Gheco-One power plant and rising power generation capacity from Solar projects. In addition, WHAUP stands to benefit further from the new Power Development Plan through selection for new power plant projects, as well as opportunities from Direct PPA projects. For the profit trend in the third quarter of 2026, it is expected to be flat from the previous quarter, supported by the share of profit from the Gheco-One power plant, where losses from the coal business are likely to narrow, while water usage tends to increase in line with demand from petrochemical customers, together with the recognition of power generation capacity from new Solar projects providing additional support.

Yuanta Securities (Thailand) said the government is drafting the 14th National Economic and Social Development Plan for 2028-2032, which will take effect from October 2027, aiming to restructure the Thai economy and reduce constraints that hinder growth, in order to push economic expansion above 3% per year and set a goal for Thailand to rank among the world's top 20 in competitiveness by 2029. The plan is driven through five key areas, covering raising production efficiency and attracting new industries, reforming public administration toward OECD standards, upgrading human capital to support an aging society, turning natural resources and the environment into development capital, and investing in technology and innovation. A key shift from the 13th plan is the move away from designating target industries toward addressing structural constraints, through five pillars: Transform, Reform, Upgrade, Sustain, and Transfer. Yuanta's research team sees industries with a chance to benefit, including AI and data centers, electrical infrastructure, smart grid and smart meter, automated production systems, proactive water management, and digital infrastructure. The five stock groups expected to benefit are power plants, commercial banks, telecommunications, electronics, and construction contractors and building materials. Stocks that stand to gain include GULF, GUNKUL, GPSC, SSP, SCB, KTB, ADVANC, TRUE, SMT, and EPG.

The World Bank has raised its forecast for Thailand's GDP growth this year to 2% from 1.3%. TTBB Wealth Securities said the upgrade was driven by exports of AI-related goods and investment in data centers, which helped offset the impact of higher energy prices. For 2027 and 2028, Thailand's economy is expected to expand by 2.3% and 2.4%, respectively. Risks to watch include conflict in the Middle East, higher US import tariffs, a weak tourism sector, the effects of a severe El Niño that could hit farmers' incomes, and household debt as high as 87%. Although the upward revision to the GDP forecast is a positive factor, growth remains concentrated in only a few industries, so the research team is using a selective strategy, focusing on export groups with strong growth and groups that benefit from data center investment, namely DELTA, KCE, HANA, STECON, GULF, GUNKUL, BGRIM and GPSC.

Digital Realty announced the commencement of construction of KIX15, a new 24 megawatt data center at its KIX Campus in Ibaraki City, Osaka Prefecture, Japan. The facility is being developed by MC Digital Realty, Digital Realty's 50/50 joint venture in Japan with Mitsubishi Corporation, and is scheduled to commence operations in the fourth quarter of 2028. KIX15 will be the fifth data center at the KIX Campus and, upon completion, will bring MCDR's Japan portfolio to 10 data centers representing approximately 220 MW of aggregate IT capacity. The expansion follows the opening earlier this year of the NRT14 Data Center in Inzai City, Chiba Prefecture, one of the first facilities in Japan to achieve the DGX-Ready Data Center certification. KIX15 is a key component of MCDR's Kansai AI Infrastructure Co-Creation Project and is designed to support hybrid air- and liquid-cooling technologies for hyperscalers, cloud service providers and companies deploying AI infrastructure.

LinkedIn co-founder Reid Hoffman said the massive capital flowing into AI infrastructure and data center construction is the only reason the U.S. economy is not in a recession. Speaking on the 'Newcomer' podcast released Friday, Hoffman said most of that capital does not go directly to areas where data centers are being built but is more distributed across the country, and he highlighted the work it provides for construction workers, carpenters, real estate agents, electricians and lawyers. He added that a massive percentage of the capital infusion is going toward data center construction, and said developers should work fairly with local communities so both sides benefit. The remarks come as Meta Platforms reportedly classified some AI data centers as pilot models to claim federal research tax credits, reducing its tax bill by $3.9 billion in 2025, and as Broadcom was reportedly assembling a $60 billion financing package to help Anthropic and other companies fund AI chip and infrastructure needs. AI skeptic Ed Zitron has warned that private credit funding the data center boom has become a brewing crisis, while Bill Gates said the world might need to experience serious AI-related problems before governments and the public fully address the technology's risks.

Tutor Perini Corporation announced that its subsidiary Fisk Electric Company has been awarded an electrical services contract worth approximately $24 million for a confidential data center customer in Houston, Texas. Fisk's scope covers prefabrication and assembly of modular containment systems and related electrical infrastructure, including liquid-cooled components and piping, for a new ground-up data center. Those units will be built at Fisk's new 75,000-square-foot prefabrication and manufacturing facility in Houston, which the company says positions it to serve a fast-growing prefabrication market driven by a nationwide shortage of electricians. Electrical construction work is expected to begin in the fourth quarter of 2026, with substantial completion anticipated in the first quarter of 2027. The contract value will be reflected in Tutor Perini's backlog for the third quarter of 2026.