Australia's electrification story is moving out of policy papers and into the real economy.
Power networks are being upgraded, data centres are expanding, electric vehicles are becoming more common, and commercial buildings are getting smarter and more energy-intensive.
All of this requires one thing Australia cannot avoid: more electrical infrastructure. That creates demand for the businesses that supply equipment and deliver the work on the ground.
Here are two ASX-listed companies exposed to that trend from different angles.
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IPD Group Ltd (ASX: IPG)
IPD Group sits in the supply chain for electrical and automation equipment. It distributes products used in power distribution, industrial systems, data centres, renewables, and mining operations.
In December, IPD Group announced the acquisition of Platinum Cables for $37.5 million upfront, with potential earn-out payments of up to $7.5 million tied to profit growth through to December 2026. Platinum Cables reported FY2025 revenue of $44.8 million and operating earnings (EBITDA) of over $8 million. IPD Group management also said the acquisition is expected to be earnings accretive by around 11.5% on a pro forma FY 2025 basis, before any synergies.
The acquisition expands IPD Group's footprint in specialist electrical cabling, particularly in mining, infrastructure, and large-scale projects. Platinum Cables will continue operating as a standalone business, with its management team retained.
Beyond the deal itself, IPD Group has highlighted improving conditions across commercial construction and engineering work. Management recently pointed to growth in non-residential building activity and stronger momentum in engineering construction, alongside demand linked to data centres, EV charging infrastructure, and broader grid upgrades.
In simple terms, IPD Group benefits when Australia builds or upgrades the systems that move electricity safely and efficiently.
SKS Technologies Group Ltd (ASX: SKS)
SKS Technologies focuses on delivering the infrastructure rather than supplying the components.
The company provides electrical, IT, communications, and audio-visual services, handling everything from design and installation through to integration and ongoing maintenance. Much of its work is project-based, and management reports that around 94% of revenue comes from repeat customers.
In recent years, data centres have become a major part of the business. SKS Technologies has said data centre-related work made up more than half of FY2025 revenue, driven by large-scale investments from global technology companies. Revenue from data centre projects rose sharply, from $31 million in FY 2024 to over $140 million in FY 2025, according to company materials.
In May 2025, SKS Technologies secured a $100 million contract to deliver a third data centre facility in Melbourne for an international hyperscale operator, following earlier stages of the same development.
Most recently, SKS provided an update at its annual general meeting, where management outlined expectations for the year ahead. The company said it is estimating revenue of around $320 million, supported by a healthy project pipeline.
Why this tailwind matters for Australia
Australia cannot afford to stand still on energy and digital infrastructure.
Electricity demand is rising as transport, industry, and buildings become more electrified. At the same time, data usage continues to grow rapidly, driven by cloud computing, artificial intelligence, streaming, and enterprise digital systems. These trends place increasing pressure on power grids, backup systems, cooling, and network reliability.
Unlike discretionary spending, this infrastructure is essential. Businesses, households, hospitals, and governments all rely on it functioning smoothly. Delaying upgrades only increases future costs and risks.
What's driving this long term
Several forces are at work:
- Electrification of transport and industry, including EV charging networks and electric machinery
- Data centre expansion, as Australia builds capacity to support digital services and AI
- Grid modernisation, to handle renewable energy, higher loads, and reliability requirements
- Urban growth and commercial construction, which increase baseline power needs
These are multi-decade trends rather than short-term cycles.
Foolish Takeaway
IPD Group and SKS Technologies operate in different parts of the same system, but both are linked to Australia's need to build, upgrade, and maintain critical electrical infrastructure.
For investors interested in long-term national trends rather than short-term market themes, these types of businesses highlight how electrification shows up in the real economy.
