Legacy financial services institution Morgan Stanley (MS) saw its stock price rise more than 3% on Friday, as investors responded warmly to its ambitious expansion plans. According to multiple media reports, Morgan Stanley has selected Dallas as its new base for expanding its office footprint and will serve as the anchor tenant in a new landmark office building in the city. As early as June of this year, the Dallas City Council approved a package of incentives, including a conditionally allocated $18.5 million grant, to attract the financial giant to relocate. Under the plan, the expansion will proceed in two phases: first occupying space within an existing local landmark building, then relocating to the new tower, with the move expected to affect the work arrangements of as many as 4,800 employees by 2031.
Morgan Stanley has also recently released an energy forecast: between 2026 and 2028, U.S. data centers will require approximately 68 gigawatts of new power capacity. After subtracting the roughly 15 gigawatts that can be supplied by completed or under-construction projects, and another 15 gigawatts available through existing grid contracts, a potential power shortfall of up to 38 gigawatts remains—a figure that is by no means trivial. In some regions, obtaining new grid interconnection approvals already takes five to seven years, a timeline that is difficult for artificial intelligence companies eager to expand to accept. Morgan Stanley expects that data center developers will increasingly turn to “behind-the-meter” self-supply power solutions, such as on-site natural gas generation and fuel cells.
Facing this enormous electricity bottleneck, Morgan Stanley’s analysis points to investment opportunities in traditional industrial equipment sectors. GE Vernova (GEV), the energy business of General Electric, power equipment manufacturer Eaton (ETN), and critical infrastructure provider Vertiv (VRT) have drawn attention due to their core positions in the power value chain.
GE Vernova provides natural gas turbines, which are key equipment for addressing “behind-the-meter” self-generation power needs. Its backlog of gas power equipment orders has grown from 100 gigawatts to 116 gigawatts, and management expects contracted volume to reach at least 125 gigawatts by year-end. In the first half of 2026 alone, its electrification business received more than $5 billion in orders from data centers. Eaton plays the role of power transmission and distribution, providing indispensable equipment such as switchgear, transformers, and busway within data centers. Its electrical sector data center orders grew approximately 85% year-over-year in the second quarter, while its Americas business backlog increased 33%. The company also recently completed the acquisition of a liquid cooling technology firm to address the cooling challenges posed by high-density AI servers. Vertiv specializes in power management and thermal management systems. Its second-quarter revenue jumped 24%, and adjusted free cash flow more than tripled, with management projecting full-year revenue of approximately $14 billion.
