Story
AI Data Center Buildout Creates Opportunity for Workforce Stocks, Barclays Says
Summary
Barclays analysts project a surge in AI-related capital spending, identifying workforce accommodation providers like Target Hospitality and Civeo Corp. as key beneficiaries of the massive data center construction required.
Workforce services and accommodation providers are positioned to become key beneficiaries of the artificial intelligence infrastructure boom as spending on data centers soars, according to a new analysis from Barclays.
The 'Pick and Shovel' Thesis
Barclays' technology analysts now project that annual AI infrastructure spending by Western hyperscalers and AI labs could eventually surpass $1 trillion. This figure represents more than $300 billion above current market consensus, with the investment bank forecasting a spending peak in 2028.
This unprecedented capital expenditure cycle is expected to fuel a massive need for labor to construct and operate new data centers, many in remote locations. Barclays identifies workforce services firms as essential "pick and shovel" providers that support this buildout by housing construction teams and operational staff.
Barclays Highlights Key Providers
The investment bank identified two top stocks in the sector poised to capitalize on the sustained demand for workforce accommodations.
Target Hospitality (TH)
AdTarget Hospitality builds and operates purpose-built campuses designed specifically for data center construction projects. According to Barclays, the company has already secured a "DC Community Contract" representing over $130 million in revenue, placing it directly in the path of the infrastructure expansion.
More recently, the company reported a first-quarter 2026 loss per share of $0.13, which was below analyst forecasts. It also completed a secondary offering of stock by existing shareholders, from which the company received no proceeds.
Civeo Corp. (CVEO)
Civeo operates a global network of over 26,000 rooms, providing lodging and food services for large, remote labor forces. Barclays notes that the company's established scale positions it to serve the needs of data center projects across multiple geographic markets.
Civeo announced first-quarter 2026 results that surpassed analyst expectations for both revenue and earnings. The company also disclosed that a joint venture in Western Canada received a six-year contract renewal for its accommodation services.
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