Adds analyst comment in paragraphs 4-5, 7

By Arasu Kannagi Basil

June 1 (Reuters) - ERock, which makes natural gas generators for critical facilities, is targeting a valuation of up to $5 billion in its IPO in the United States, as it looks to tap surging investor enthusiasm for companies benefiting from the AI boom.

The Houston, Texas-based company is seeking to raise up to $641.9 million by offering 27.9 million shares priced between $20 and $23 apiece, it said in a regulatory filing on Monday.

AI infrastructure-linked companies have been at the centerstage of the U.S. IPO market this year as investors deploy capital into the "picks and shovels" underpinning the technology's buildout.

"AI infrastructure companies, particularly data center operators, are increasingly pairing new facilities with on-site distributed power generation," said Troy Hooper, co-head of equity capital markets, Americas at Mergermarket.

"As data centers, utilities, and other power-intensive businesses contend with transmission bottlenecks and growing concerns about grid reliability, demand for alternative power solutions has accelerated."

ERock, founded in 2006, provides natural gas generators to data centers, utilities, and commercial and industrial customers across nine U.S. states. A huge chunk of its revenue comes from high-growth regions like Texas and California.

"ERock was an early mover in the microgrid market, emerging in the wake of Hurricane Sandy, and its equity story resonates strongly in today's environment," Hooper said.

Data centers have enormous energy needs and are spearheading a surge in power demand in the U.S., with generative AI requiring significantly more electricity than traditional computing tasks.

ERock had roughly $1.3 billion in sales backlog as of March 31, a nearly nine-fold jump from a year earlier.

The company, formerly called Enchanted Rock, is targeting increasing its annual assembly capacity to roughly 1.2 GW by the end of 2026 with the development of its Hyperion facility in Houston.

Morgan Stanley and J.P. Morgan are joint lead bookrunning managers. ERock will list on the NYSE under the symbol "EROC".