AI Data Center Land Grab
The idea
I think AI's real bottleneck is physical, not digital: power, cooling, and land to run giant computers. This basket leans into the upstarts winning that fight, former crypto miners turned AI landlords with power already hooked up, plus the suppliers who build out that infrastructure regardless of who wins, a slice of power upstarts betting on new generation sources, and steadier established landlords as ballast. I'm keeping around 10% in cash since these stocks swing hard, avoiding big single-name bets, and planning to hold for years unless AI spending itself craters.
What will be bought
- These companies already own powered land, the scarcest thing in AI, and are converting it into AI data centers on long leases. · IREN LimitedThe company is converting its powered mining sites into AI data center space with Microsoft as an anchor tenant, and the fit holds while construction and tenant payments continue., Cipher MiningIt is signing long-term AI leases on powered land with Google backing part of the deal, and stays relevant as those leases move from agreements into operational buildings with paying tenants., TeraWulfIt holds a long-term lease for powering AI infrastructure and has plans for additional capacity, addressing the core scarcity of powered land, and the position holds while the tenant pays and new power comes online., Applied DigitalIt builds AI campuses from scratch for major tenants and wins if demand for powered buildings keeps exceeding supply, though rising interest costs mean lease revenue must cover debt quickly., Core ScientificIt converted mining sites into data center space leased to CoreWeave, fitting the bet that miners with large power hookups win the facilities race as long as those leases hold and the tenant expands., Hut 8It is a former miner hosting a site for an AI company with a large pipeline of signed leases, and the fit depends on whether that backlog converts to revenue as scheduled., CleanSparkIt owns powered land and is early in its pivot to AI tenants, but still earns mostly from mining, and only fits if it actually signs AI leases for that land., Galaxy DigitalIt is building a campus for AI tenants on controlled land with large power capacity, and fits as long as it signs long-term AI leases since the rest of the business serves mining, not this take., Bitdeer TechnologiesIt is shifting mining power toward AI work and reports a large pipeline of AI cloud revenue, and stays relevant while that backlog keeps growing and converts to actual revenue.38%
- Waiting years for a grid hookup is the biggest delay in opening AI sites, and these companies make power right where the data center sits. · Bloom EnergyIt sells fuel cells that generate electricity on-site at data centers, so builders avoid waiting years for grid connections while customer orders keep flowing., OkloIt is designing small nuclear reactors to power data centers on-site as a longer-duration bet, and fits while making regulatory progress and signing customer agreements., NuScale PowerIt has a small modular reactor design with regulatory approval but no operating plant yet, and fits as long as real orders appear, especially linked to data center power needs, without running short of cash., FuelCell EnergyIt is a smaller fuel cell maker pursuing on-site power deals for data centers as a second contestant alongside another player, and only fits if it actually lands data center contracts.16%
- Every new AI site needs power gear, cooling and construction crews, so these companies get paid whoever owns the building. · VertivIt supplies the power and cooling equipment that every AI data center requires, so it gets paid regardless of which landlord prevails as long as orders from builders keep rising., Quanta ServicesIt builds power lines and grid connections that link data centers to electricity, the slowest part of the build-out, and fits as long as data center and utility work keeps growing its backlog., EatonIt manufactures electrical distribution gear and switchgear that runs through every data center, and fits while data center orders keep growing its electrical business., Comfort Systems USAIt installs mechanical and cooling systems inside data centers, so more buildings mean more work, and stays relevant while data center projects grow as a share of its backlog.16%
- These newer cloud companies rent AI computing power and are taking share from the big tech clouds. · CoreWeaveIt is the largest of the new AI cloud providers, renting AI computing faster than established clouds can build, and serves as a key tenant for several miners in this basket while expanding customer contracts., Nebius GroupIt operates its own AI cloud and sells computing to AI companies as a second upstart taking share from older players, fitting the take while customer contracts grow and it funds expansion without strain.10%
- The biggest data center owners give steadier returns from the same demand if the upstarts stumble. · EquinixIt is a long-established global data center landlord earning steady rent, stabilizing the basket when upstarts swing, and fits as long as AI demand keeps buildings full and rents rising., Digital RealtyIt leases large data center halls to big tech companies and serves as the other steady landlord here, fitting the take while hyperscale tenants keep signing new space instead of moving entirely to upstart sites.10%
- Cash10%