American Tungsten Corp. (TSXV: TUNG, OTCQB: DEMRF)
Building America’s Defense Critical Metals Supply
Global capital expenditure on AI data centers is projected to reach $700 billion to $800 billion in 2026, nearly doubling from approximately $400 billion in 2025. This infrastructure spending frenzy, led by hyperscale tech giants, is generating unprecedented growth opportunities for Canadian infrastructure suppliers. Two TSX-listed stocks — Capital Power (TSX:CPX) and Hammond Power Solutions (TSX:HPS.A) — are well-positioned to benefit from this multi-year structural trend, thanks to their core roles in power supply and hardware equipment.
Capital Power: Secures Long-Term Power Supply Agreement with Meta, Delivering Significant Cash Flow Visibility
AI data centers are notoriously energy-intensive, with an inelastic demand for stable and reliable electricity. Capital Power has precisely addressed this critical need. On July 8, 2026, the company officially signed a landmark long-term energy supply agreement with Meta Platforms, committing to provide 250 megawatts of power capacity for Meta’s newly announced US$13 billion AI data center in Sturgeon County, Alberta. The contract, which evolved from a preliminary framework agreement signed in late 2025, is expected to contribute predictable, high-margin cash flows to Capital Power over the next decade.
Capital Power is a sizable independent power producer operating 35 generation facilities with a total installed capacity of approximately 12 gigawatts, spanning natural gas, renewables, and battery energy storage. More notably, management disclosed in May that the company has approximately 2 gigawatts of underutilized infrastructure available. This implies that as new data center projects continue to materialize, Capital Power still has ample capacity to take on additional high-return contracts. Furthermore, the company has established a US$3 billion investment partnership with Apollo Global Management, focusing on U.S. natural gas assets to address growing grid demand.
Management projects an 8% to 10% compound annual growth rate in adjusted funds from operations (AFFO) per share through 2030. This cash flow expansion outlook provides a solid foundation for continued dividend increases. Capital Power currently offers a dividend yield of 3.9%, and management has raised the dividend for 12 consecutive years. Although its forward P/E ratio of 31x sits slightly above historical averages after a 22% year-to-date rally in its share price, the long-term revenue visibility from hyperscale customers makes it a quality pick for dividend growth-oriented investors.
Hammond Power Solutions: Custom Transformer Leader — Valuation Pullback Creates an Attractive Entry Point
If Capital Power is responsible for “generating” electricity, Hammond Power Solutions provides the critical “distribution hardware.” The company specializes in the manufacturing of custom dry-type transformers and power transformers — essential components for power regulation and distribution within AI data centers. Regardless of which tech giant ultimately wins the AI revenue race, every megawatt of server capacity requires customized transformers before it can be connected to the grid. And Hammond Power is a formidable competitor in this niche.
The company’s operational strength was further validated in June 2026, when it was officially added to the S&P/TSX Composite Index. Its financial performance has been equally impressive: first-quarter revenue grew 31.5% year-over-year to CAD 265 million, with custom data center applications serving as the primary growth engine; adjusted earnings per share rose nearly 30%, while its order backlog surged 94.6%.
To meet surging demand, Hammond Power’s newly built manufacturing facility in Mexico began delivering products earlier this year. In June, the company completed the strategic acquisition of AEG Power Solutions for CAD 365 million, establishing a new Integrated Electrical Solutions (IES) business unit aimed at capturing higher-margin system-level demand. This integration is expected to further strengthen its competitive moat in the data center power space and accelerate revenue growth.
On the valuation front, Hammond Power has pulled back approximately 23% from its recent highs over the past two months, bringing its forward P/E ratio back to a more attractive level of around 30x. For long-term investors bullish on data center hardware demand, the current valuation correction may offer a favorable entry window.
Summary
The explosive growth of AI data centers is not only driving up capital expenditures among tech giants but also creating structural opportunities for upstream power and hardware suppliers. Capital Power and Hammond Power Solutions are approaching this high-growth sector from two distinct angles — “power generation” and “power distribution” — each with a clear growth thesis and verifiable order support. As the AI infrastructure investment wave continues to gain momentum, these two Canadian infrastructure names deserve ongoing attention.
