Australian engineering and infrastructure stocks are emerging as some of the biggest beneficiaries of the artificial intelligence investment boom as billions of dollars flow into new data centres.
Southern Cross Electrical Engineering Ltd jumped about 8% to A$5.24 on Monday after Macquarie initiated coverage with an outperform rating and A$5.60 price target.
The broker estimates more than A$60 billion of Australian data centre construction is underway or likely to proceed, creating a substantial pipeline for electrical, engineering and construction contractors.
Southern Cross Electrical has risen more than 100% in 2026, while several peers are also trading close to record levels.
GenusPlus Group has gained around 55% this year, Tasmea about 160%, NRW Holdings more than 60% and SKS Technologies roughly 175%.
AI boom spreads beyond tech stocks
The performance highlights how investors are increasingly looking beyond semiconductor and software companies for exposure to AI.
Data centres require enormous quantities of electrical infrastructure, cooling systems, backup power, grid connections and specialist construction work.
Macquarie estimates Southern Cross Electrical alone has around A$1 billion of potential data centre opportunities, with revenue from the sector potentially tripling from about A$120 million in FY26.
The company finished FY26 with a record A$810 million order book and A$261.5 million in cash with no debt.
The trend provides the ASX with an unusual way of gaining exposure to the global AI boom.
Rather than developing artificial intelligence itself, Australian engineering companies are increasingly supplying the physical infrastructure required to make it work.
