AI Boom Fuels Growth of Electrical Distribution Firm Forgent Power Solutions

The surge in demand for data center infrastructure, driven by the global artificial intelligence race, is creating unexpected opportunities in a traditionally stable industry: electrical distribution equipment. Forgent Power Solutions, a relatively new company formed through the consolidation of four existing businesses, recently capitalized on this trend with a successful initial public offering in February.

Forgent’s Rapid Rise

Forgent Power Solutions launched its IPO and quickly reached a market capitalization of nearly $8 billion. CEO Gary Niederpruem quipped, “I made a joke in one of the investor sessions that we’re bringing sexy back in the electrical distribution space.” The company serves three key markets – data centers, power grids, and industrial facilities – all of which are experiencing growth.

Did You Know? Forgent was formed through the acquisition of four companies: 50-year-old MGM Transformers, States Manufacturing, PwrQ, and VanTran Transformers.

Focus on the Data Center Boom

The data center segment is currently the fastest-growing area for Forgent, and Niederpruem anticipates this trend will continue. While the data center sector has been cloud-based for the past two decades, the recent emergence of AI is accelerating demand. “The AI piece has come on relatively recently, and it’s just icing on the cake. There’s no doubt AI has added an accelerant,” he stated. The company’s order backlog grew by 45% near the end of 2025.

Competition and Strategy

Forgent enters a competitive landscape dominated by larger players like Vertiv, Eaton Corp., Schneider Electric, and GE Vernova, with market capitalizations ranging from $88 billion to $217 billion. To differentiate itself, Forgent focuses on providing bespoke solutions within its four product families: transformers, switchgear equipment, transfer switches, and prefabricated solutions. The company aims to engage early in the planning process and deliver customized solutions for projects ranging from on-site power plants to large-scale solar farms.

Expert Insight: Forgent’s success highlights the critical, yet often overlooked, role of infrastructure in supporting the AI revolution. The company’s focus on specialized solutions suggests a strategy to carve out a niche in a market dominated by larger, more diversified competitors.

A Private Equity Story

Forgent’s origins trace back to 2022 when Peter Jonna founded Neos Partners, a private equity firm specializing in utilities and electrification. Neos invested $205 million to build 1.8 million square feet of manufacturing space, bringing the total to 2.3 million square feet. Gary Niederpruem joined as CEO over a year ago and launched the Forgent brand in August, signifying a forward-looking approach.

Frequently Asked Questions

What markets does Forgent serve?

Forgent serves three end markets: data centers, power grids, and industrial facilities.

How did Forgent come to be?

Forgent was formed through the consolidation of four legacy companies – MGM Transformers, States Manufacturing, PwrQ, and VanTran Transformers – by the private equity firm Neos Partners.

What is driving growth at Forgent?

The data center segment, particularly fueled by the growth of artificial intelligence, is driving the fastest growth at Forgent. The company’s order backlog grew by 45% near the end of 2025.

As Forgent navigates this rapidly evolving landscape, will its specialized approach be enough to sustain its growth and compete with industry giants?