The AI infrastructure boom: a Swiss equity investment case?

AI is reshaping not only what we compute, but how we build. As data centres scale up, constraints have shifted from chips to systems: power, cooling, grid capacity, and precision engineering.

Few markets are as embedded across these bottlenecks as Switzerland. From transformers and thermal management to vacuum technology and high‑spec construction, Swiss listed companies span the AI value chain while maintaining a multi‑theme profile anchored in supply chain resilience, healthcare, energy efficiency, and European reindustrialisation. The result is a diversified equity market combining structural growth and defensive exposures with historically low correlations to US and global equities at valuations that remain attractive compared with US equities.

A structural capex cycle

Private data centre construction is accelerating globally, however, what is less often discussed is where this spend is landing. Beyond semiconductors and hyperscaler infrastructure, every new data centre requires power management systems, grid upgrades, precision cooling, and specialist construction – all of which are areas where Swiss companies have deep, established capabilities that play out worldwide.

Energy has become one of the main constraints on the pace of build‑out. Electricity demand, particularly in the United States, is rising, driven in part by data centres. Transformers, metering systems, and precision temperature management have moved from supporting roles to critical means of freeing up bottlenecks, and companies able to address these constraints are among the structural beneficiaries of the cycle. In short, value creation goes beyond chips and can also be found in the electrical and thermal stack, an area of long‑standing Swiss strength.

The breadth of Swiss exposure along multiple links in the value chain may help manage risk within a portfolio context, especially through active selection, given that permit timelines, grid approval delays, and shifts in giant tech companies’ capital expenditure can still create idiosyncratic volatility.

Swiss equities are currently trading broadly in line with global equities and at a discount to US equities. Historically, the Swiss Performance Index (SPI) has traded at a premium to global equities, reflecting the higher and more stable value‑creation profiles of Swiss companies, and indeed, current valuation levels may offer a relatively attractive entry point for investors considering an allocation to the index.

The SPI has historically shown moderate-to-low correlations to the S&P 500 and MSCI AC World thanks to its distinct sector composition and the global, yet domestically listed, nature of its constituents. This characteristic is particularly relevant in the current environment, where global and US equity performance has been driven by a narrow set of large‑cap technology companies to which the SPI has limited direct exposure.

Linking these market‑level attributes to company‑level exposure, Swiss equities can position investors to capture AI infrastructure spend without concentrating risk in a handful of mega‑cap technology names.

AI: the Swiss value chain

So where do Swiss companies benefit most? Across these layers of the AI build‑out. This exposure spans large‑cap industrials and materials as well as a significant portion of the small‑ and mid‑cap (SMID) segment. It is not tied to a single subsector and does not depend on the success of any one company or technology.

1. Power and cooling: Thermal management has become mission‑critical in data centre design. High‑density server configurations generate substantial heat, and precision temperature control directly affects both reliability and energy consumption. Swiss companies with expertise in HVAC control systems and industrial cooling have seen data centre applications generate a growing share of their revenues. Industrial groups with broad electrical and automation portfolios are also positioned across this segment.
2. Grid infrastructure: The step‑up in power demand requires transformer capacity, smart grid solutions, and power electronics on a scale not seen before. Swiss companies specialising in transformers and related electrical infrastructure derive a significant share of revenues from grid upgrades, which is a segment that simultaneously benefits from data centre demand and the broader energy transition. The convergence of these drivers may support order book visibility over the medium term.
3. Semiconductor equipment: Chip manufacturing for AI applications requires highly specialised processing equipment. Swiss companies in vacuum technology, gas analysis, and testing & measurement supply critical components to semiconductor fabrication plants around the world. Revenues here are closely linked to semiconductor capital expenditure cycles, which are currently expanding.
4. Construction materials: Large‑scale data centre projects require specialist construction management, waterproofing & sealing systems, and industrial piping. Swiss companies hold leading positions in several of these areas, and a small number of domestic construction groups have built strong track records in data centre project delivery. This segment includes both SMID- and large‑cap names across the SPI.
5. Energy efficiency: Beyond raw power availability, efficiency has become a key lever in data centre economics, determining how much usable computing capacity a given power allocation can support. Swiss companies with established positions in flow control, industrial automation, and energy management are well placed to capture this demand. This segment overlaps with the grid infrastructure and power and cooling themes, reinforcing, rather than duplicating, exposure to the broader build‑out.

Together, these layers distribute exposure across end markets and capitalisations, reducing single‑point dependency while keeping the focus on system‑level bottlenecks.

Critically, AI is one pillar; Switzerland’s multi‑theme profile adds resilience

AI infrastructure is a meaningful tailwind for several Swiss companies, but beyond this revolution, multiple structural growth themes operate together. This multi‑theme characteristic is a genuine source of resilience: when sentiment around any single theme softens, exposure to others may provide support.

The Swiss equity strategies managed by UBP’s Swiss & Global Equity team reflect this diversification: AI‑related exposure coexists with positions in companies benefiting from European infrastructure spending, an ageing global population, energy efficiency, and supply chain resilience.

1. European infrastructure spending: The EU’s ReArm framework and Germany’s infrastructure programmes represent a multi‑year demand cycle for Swiss companies.
2. An ageing global population: Switzerland’s pharmaceutical and medical technology companies benefit from structural demand growth across therapeutic areas, diagnostics, and medical devices, driven by demographic trends.
3. Energy efficiency: Retrofitting buildings, grid modernisation, and process efficiency create sustained demand for energy management and flow control. These themes reinforce – and partially overlap with – the AI infrastructure cycle at the grid layer.
4. Supply chain resilience: The relocalisation of manufacturing is driving capital expenditure in precision engineering, automation, and quality testing – all areas of well‑established Swiss competitive strength.

The team monitors end‑market diversification at portfolio level to ensure that the market’s multi‑theme character translates into genuine resilience rather than correlated concentration. Active selection across these segments requires company‑level analysis of revenue exposure, order book evolution, and competitive positioning. Fundamental discipline, including CFROI (cash‑flow return on investment, source: UBS HOLT)‑based assessment, remains important in evaluating the quality and sustainability of earnings growth.

More than a Swiss tilt to AI

The Swiss equity market offers investors calibrated, diversified access to the AI infrastructure investment cycle without concentrating exposure in a handful of large US technology names or compromising with current US valuation multiples. The market’s breadth across the value chain and across market capitalisations – including a significant SMID-cap segment not easily accessible through passive strategies – suits the current investment environment. Combined with historically moderate correlation to global and US benchmarks, attractive relative valuations, and multiple secular growth drivers, Swiss equities merit renewed consideration as a diversifying source of structural growth.

The opinions expressed herein are correct as at 15 June 2026 and are subject to change without notice. This information should not be relied upon by the reader as research or investment advice regarding any particular fund, strategy or security. Past performance is not a guide to current or future results. Any forecast, projection or target, where provided, is indicative only and is not guaranteed in any way.

The views and opinions expressed by fund managers (internal or external) may differ from the house view. They are shared for informational purposes and do not constitute investment advice or a recommendation.