Multiple electrical equipment makers are advancing significantly today after it was reported that three major companies will invest up to $500 billion in AI infrastructure in the U.S. in the next four years.

Among the electrical equipment makers rallying on the news are GE Vernova (GEV), Powell Industries (POWL), and Quanta Services (PWR). The data centers that create and provide AI require a great deal of electricity to function. GEV, POWL, and PWR are advancing 3.5%, 9%, and 4.6%, respectively.

A Huge Investment in the Expansion of AI

Oracle (ORCL), Japanese investment bank Softbank, and OpenAI have agreed to plow up to $500 billion into AI infrastructure in the U.S. in the next four years, President Donald Trump is expected to announce troday. The companies will initially spend $100 billion on the initiative.

AI Utilizes a Great Deal of Electricity

Spurred by the AI Revolution, data centers' power consumption will grow 160% by 2030, Goldman Sachs predicted last May. And Doug Burgum, Trump's incoming energy czar, recently stated that the U.S. needs to generate more electricity to support AI.

Of course, meaningfully increasing the amount of electricity produced often requires more power stations, and power stations utilize electrical equipment. Consequently, the rally of electrical equipment makers today was likely spurred by the news about the upcoming, large investment in AI infrastructure.

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Disclosure: None. This article is originally published at Insider Monkey.