Power for the Token Boom
Jiayao Yu@jiayao
· 2
−9.9%
since Oct 10
The idea
I think the agents layer turns into a price war with thin margins, even as token usage keeps growing fast, so I'd rather own what every token physically needs than bet on who wins that fight. This basket holds grid giants and electrical contractors as the base, then data center power and cooling, then smaller switchgear makers, keeping some cash on the side and no single name as a huge bet. I'm holding for years, since this is a buildout, not a trade, and I'd rethink it if data center power demand actually stalls.
What it owns
- Construction crews that physically build substations, power lines and data center wiring are operating at full capacity. · Quanta ServicesAs the largest contractor building power transmission lines and substations, it serves the infrastructure utilities must complete before data centers connect to the grid., EMCOR GroupIt provides electrical and mechanical installation work inside data centers, earning fees per building built regardless of which operators occupy them., Comfort Systems USAIt installs cooling and mechanical systems in data centers, work that expands as heat output rises from increased server density., MYR GroupIts crews construct high-voltage transmission lines that bring new power capacity to regions receiving new data center development., Sterling InfrastructureIt clears and prepares land for large data center campuses, the initial step before any power infrastructure installation begins., MasTecIt builds power transmission lines and utility infrastructure supporting data centers, though it also operates in other infrastructure sectors., Primoris ServicesIt constructs substations and solar installations that add power generation capacity for data center regions.33%
- The largest makers of turbines, transformers and electrical equipment have years of orders already booked, providing a steady foundation for the take. · GE VernovaIt manufactures gas turbines, grid equipment and transformers that convert growing power demand into electricity for data centers and utilities., Eaton CorporationIt sells switchgear, breakers and power distribution systems used inside data centers and across the grid regardless of which providers win contracts., CaterpillarIt manufactures large engines and turbines that enable data centers to generate their own power when grid connections cannot be built quickly enough., Hubbell IncorporatedIt manufactures connectors, substation hardware and line components that utilities need to connect new electrical load to the grid.27%
- Every new rack of servers requires power delivery, backup systems and cooling infrastructure built adjacent to it. · Vertiv HoldingsIt supplies power delivery and heat removal systems for server racks, essential components as data center density increases., nVent ElectricIt makes liquid cooling systems and enclosures needed as denser server configurations require higher power density per rack., Bloom EnergyIt manufactures fuel cells that provide data centers on-site power without waiting for grid connections, valuable if electricity supply remains constrained., CumminsIt makes backup generators that data centers require on-site, though most of its revenue currently comes from truck engines., Generac HoldingsIt is known for home generators but increasingly sells large backup generators to data center operators.23%
- Smaller component makers face supply constraints when construction accelerates, creating pricing power. · Powell IndustriesIt builds custom switchgear for large power users like data centers and utilities, equipment that becomes scarce when all parties build simultaneously., American SuperconductorIt manufactures equipment that stabilizes the electrical grid as large new data center loads connect to it., AtkoreIt makes the conduit and cable that carry power through every data center and electrical construction project.10%
- Cash7%