By Amy Legate-Wolfe at The Motley Fool Canada
Investors might believe that data centre stocks mean investment in artificial intelligence. They’re not wrong. But it’s the behind-the-scenes investment that truly makes a data centre investment sing.
Data centres run on power, buildings, transformers, cooling, logistics, and a mountain of industrial infrastructure. That’s where the investment story gets interesting. AI may sit at the centre of the boom, but the money won’t flow only to chipmakers and cloud giants.
Canada could see years of demand tied to data centres, grid expansion, and industrial real estate. That creates room for overlooked TSX winners. Two Canadian stocks that could benefit are Hammond Power Solutions (TSX:HPS.A) and Granite Real Estate Investment Trust (TSX:GRT.UN).
HPS
Every data centre needs reliable electricity. A server farm can’t afford weak power systems. It needs transformers, power-quality equipment, and electrical infrastructure that can handle heavy, constant demand. Hammond makes dry-type transformers, power quality products, and related electrical equipment for industrial and commercial customers.
That puts it right in the path of a bigger power buildout. Data centres need more than one plug in the wall. They need equipment that helps move, manage, and stabilize electricity across complex sites. Utilities, factories, renewable projects, mining operations, and industrial customers also need many of the same products. So Hammond doesn’t depend only on data centres to grow.
The latest results already look strong. In the first quarter of 2026, Hammond reported record quarterly sales of $265 million, up 31.5% from last year. The company also improved gross margins from the fourth quarter of 2025. Those numbers show demand hasn’t cooled, even after a strong run for the stock. All together, Hammond gives investors a practical way to play data-centre growth without betting on one technology cycle.
GRT
Granite REIT offers a steadier angle. It doesn’t own data centres, but owns industrial and logistics properties across North America and Europe. That may sound one step removed, but data-centre growth creates a large physical supply chain.
Think about everything that needs to move before a data centre opens. Electrical gear, cooling systems, backup power equipment, steel, cable, construction materials, and replacement parts all need storage and distribution. Suppliers need space, contractors need locations, and logistics networks need room to expand. Granite owns the kind of industrial real estate that can benefit from that broader buildout.
Its latest results showed why income investors keep watching it. In the first quarter of 2026, Granite reported net operating income of $134.2 million, up from $125.7 million a year earlier. Occupancy also stayed high, and the REIT continued to sign leases at higher rents than expiring agreements.
That pricing power matters. Industrial real estate still benefits when tenants need well-located space and don’t have endless good options. Granite also pays monthly distributions, which can appeal to investors who want income while waiting for long-term growth.
Bottom line
Hammond and Granite offer a pair of complementary stocks. Hammond sits closer to the electrical backbone. Granite sits closer to the physical real estate and logistics network. Neither stock needs investors to chase the loudest AI name on the market, but both provide stellar income even with $7,000 invested.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| HPS.A | $322.60 | 21 | $1.10 | $23.10 | Quarterly | $6,774.60 |
| GRT.UN | $93.89 | 74 | $3.55 | $262.70 | Monthly | $6,947.86 |
Data-centre spending could become one of the biggest infrastructure stories of the next decade. The winners may not all look like tech stocks. Some may look like old-fashioned industrial companies and real estate owners. Hammond Power Solutions and Granite REIT fit that idea, and both could give Canadian investors a smarter way to buy into the buildout.
The post Data Centre Spending Is Heating Up: 2 Canadian Stocks to Buy appeared first on The Motley Fool Canada.
Should you invest $1,000 in Granite Real Estate Investment Trust right now?
Before you buy stock in Granite Real Estate Investment Trust, consider this:
The Motley Fool Canadateam has identified what they believe are the top 10 TSX stocks for 2026… and Granite Real Estate Investment Trust wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $16,000!*
Now, it’s worth noting Stock Advisor Canada’s total average return is 91%* – a market-crushing outperformance compared to 87%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!
* Returns as of June 15th, 2026
More reading
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hammond Power Solutions. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.
2026
