Ferguson Enterprises Inc. (NYSE:FERG) is one of the best water infrastructure stocks to buy as AI data centers strain resources. On May 5, 2026, Ferguson reported first-quarter sales of $7.5 billion, up 3.6% year over year, while U.S. non-residential revenue rose 8%. Management said large capital project activity remained strong, with growth in shipments, open orders, and bidding activity.
The data center angle is unusually direct for a distributor. During the same earnings call, CFO Bill Brundage said data centers accounted for a little over half of Ferguson’s large capital project revenue. He also said large capital projects showed up principally in commercial mechanical, which grew 21%, and in part of Waterworks, which grew 14%.
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This is important because large AI data center campuses require coordinated waterworks, mechanical, HVAC, plumbing, PVF, valve, flow-control, wastewater, and fire-protection supply before they can operate at scale. Ferguson also completed two Waterworks acquisitions during the quarter: Technology Sales Associates and Chesapeake Environmental Equipment.
Ferguson Enterprises Inc. (NYSE:FERG) is a North American distributor of water, air, plumbing, HVAC, PVF, waterworks, wastewater, and related infrastructure products.
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