While demand for artificial intelligence applications is seeing rapid growth, several non-tech companies are well-positioned to benefit directly from the AI boom over the next few years, according to Scotiabank. Analysts from the Canadian bank’s investment banking division suggest that demand for data centers and electrical power will surge as AI systems become more advanced and widespread. This is because although GPUs, the specialized chips that power AI applications, are more efficient, they consume more than twice as much electricity to operate compared to non-AI chips such as CPUs. The Scotiabank analysts named six stocks that they think are well-positioned to capitalize on surging demand for data centers and renewable energy from AI applications. “We are bullish on the outlook for the data center industry and expect Equinix and Digital Realty to see significant increases in demand, providing fuel to expand valuations,” the analysts wrote in a note to clients on Jan. 22 about the second-order impact from the growth AI applications. Data center operator Digital Realty has said that it expects data created and consumed by companies to increase by 28% globally by 2025 from 2020 levels as AI usage proliferates across businesses. Meanwhile, earlier this week, fellow data center firm Equinix launched a new cloud service that will allow companies to manage their Nvidia AI supercomputing infrastructure to build AI applications. DLR EQIX 1Y line Scotiabank is particularly enthusiastic about Digital Realty, which it upgraded to a “Sector Outperform” rating with a price target of $155 — or around 9% upside potential from its current share price. Shares of the company have rallied by more than 30% over the past 12 months. “We believe it is in a prime position to create incremental shareholder value as it expands capacity to meet AI’s seemingly insatiable demand for data while at the same time de-leveraging the balance sheet by relying on JV partners to fund new investments,” the bank’s analysts added. Not to be left out, Big Tech companies like Amazon , Google and Microsoft have also announced multi-billion dollar plans to expand their data center capacity in anticipation of the AI-driven growth. Due to their massive, power-hungry data centers, Scotiabank noted that the tech companies are the largest corporate consumers of renewable power. The analysts identified NextEra Energy , NextEra Energy Partners , and Brookfield Renewable Partners as best able to meet Big Tech’s soaring electricity demand with renewable sources.