AI Power and Data Centers
mojojojo@mojojojo
−3.5%
since Oct 1
The idea
I believe AI data centers are growing faster than the power grid can keep up, and closing that gap will take years, not months. This basket spreads across the whole chain: companies building the grid hardware, utilities selling the electricity, the cooling and construction firms, and the landlords who rent out the data center space, with a small slice in next-generation nuclear as a longer-term bet on how power gets solved. No single stock carries the idea, exposure stays spread across large positions, and I keep a bit of cash aside to add if things pull back.
What it owns
- Transformers, switchgear, and other grid equipment are the constraint slowing buildout, with order books stretched years out and limited supplier capacity. · Eaton CorporationMakes transformers, breakers, and power distribution hardware that every grid upgrade and data center requires, with order backlogs stretched long., GE VernovaSupplies both the gas turbines that generate new power and the grid equipment that moves it, capturing value across both supply and distribution., Quanta ServicesBuilds the transmission lines and substations that grid upgrades require, with years-long backlogs and insufficient crew capacity industrywide., Hubbell IncorporatedSupplies electrical components and hardware that utilities purchase in volume for grid upgrades driven by data center demand., nVent ElectricMakes enclosures and connection systems protecting electrical equipment in grid and data center projects, a foundational picks-and-shovels component., Powell IndustriesBuilds switchgear and power distribution equipment for large industrial facilities and data centers, with order backlogs expanding alongside the buildout.30%
- Data centers are pulling more power from grids than was planned for, forcing electricity producers and sellers to raise prices and lock in higher-value contracts. · Vistra CorpSells electricity in markets where AI data center demand is outpacing grid capacity, lifting prices and contract values above historical levels., Constellation EnergyOperates the largest nuclear fleet in the country, which tech companies are locking up with long-term power purchase agreements at premium prices., Talen EnergyIs securing direct power supply deals to feed its generating plants straight to data center clients, expanding as regulatory approvals allow., NRG EnergyOwns gas-fired power plants that can ramp quickly to cover grid shortfalls, positioning it to benefit as demand outpaces new generation capacity.22%
- Every data center needs cooling systems and contractors to install electrical and mechanical infrastructure, creating steady work and pricing power for installers. · Vertiv HoldingsLeads the market for cooling and power systems inside data centers, where rising chip temperatures drive higher cooling budgets and liquid cooling adoption., Comfort Systems USAInstalls mechanical and cooling systems when data centers are constructed, with backlog serving as a leading indicator of active buildout pace., EMCOR GroupProvides electrical contracting and wiring services for data center construction, with the segment growing fastest and contractors facing full order books., Modine ManufacturingIs shifting toward data center liquid cooling systems at scale, moving with the same growth trends as larger competitors while old auto parts business declines.18%
- Owners of data center space collect rent from tenants regardless of which chips or models succeed, as long as demand for space outpaces new construction. · EquinixRents data center space globally to companies building out AI infrastructure, with demand running ahead of available capacity and new supply., Digital Realty TrustLeases warehouse-scale data center buildings to hyperscale cloud companies, with rents rising and demand staying ahead of new construction., Iron MountainIs building a fast-growing data center business using land and power it already controls, with the segment becoming material to overall company growth.15%
- Small modular reactors and uranium supply represent a speculative long-term answer to data center power needs if nuclear adoption accelerates. · Cameco CorporationMines uranium needed by nuclear power plants, with demand and prices supported by the potential for reactor buildout to meet data center power needs., NuScale PowerHas the first US-approved small modular reactor design, positioned to capture orders if new nuclear becomes the answer to sustained data center power demand., Oklo IncIs a pre-revenue small reactor company pursuing regulatory approvals and customer orders on the speculative side of the nuclear power bet.7%
- Cash8%