Powell Industries (POWL) stock climbed 10.55% in intraday trading on Tuesday, as the electrical equipment maker rallied along with its peers on reports of a massive investment in AI infrastructure in the U.S.

According to reports, technology giants Oracle (ORCL), Softbank, and OpenAI have agreed to invest up to $500 billion over the next four years to expand AI infrastructure in the country. The companies will initially spend $100 billion on the initiative.

The news sparked a rally in electrical equipment makers like Powell Industries, as data centers that power AI systems require a substantial amount of electricity to function. Goldman Sachs had predicted that data centers' power consumption will grow 160% by 2030, driven by the AI revolution, highlighting the need for increased electricity generation and more power stations that utilize electrical equipment.