Forgent Power Solutions Sees Booming Demand for Electrical Equipment Powering AI

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Forgent Power Solutions, a combination of four legacy electrical equipment companies, recently went public with a successful IPO. The company serves three key markets - data centers, power grids, and industrial - that are all experiencing rapid growth driven by the global AI race and expansion of cloud computing. Forgent's CEO says the company is "bringing sexy back" to the electrical distribution equipment industry that connects power to Big Tech campuses and other AI infrastructure.

Why it matters

The electrical equipment industry that powers data centers, power grids, and industrial facilities is a critical but often overlooked part of the infrastructure supporting the AI boom. Forgent's successful IPO and rapid growth highlights the strong demand and profit potential in this space as companies race to build out the physical computing and power capacity to support the explosion of AI and cloud computing.

The details

Forgent was formed through the combination of four legacy electrical equipment companies acquired by private equity firm Neos Partners. The newly combined company quickly went public in February 2026, growing to a market cap of nearly $8 billion. Forgent's four product families - transformers, switchgear equipment, transfer switches, and prefabricated solutions - are focused on bespoke offerings to help connect everything from behind-the-meter gas-fired power plants to utility-scale solar farms. The company is competing with much larger players like Vertiv, Eaton, Schneider Electric, and GE Vernova, but is aiming to differentiate through its speed, scale, and customized solutions.

• Forgent was formed and branded less than a year ago in August 2025.
• Forgent went public with a successful IPO in February 2026.
• Forgent's order backlog grew by 45% near the end of 2025.

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