−8.7%
since Oct 9
The idea
I think electricity, not chips, is the real limit on AI growth, since power plants, transmission lines, transformers and cooling all take years to build and few companies supply them. So instead of picking one winner, I spread across the whole chain: power producers and the nuclear supply chain, grid equipment makers and installers, and the power and cooling gear inside data centers, mixing steadier names with smaller, more volatile ones. I keep 8% in cash to add on dips and plan to hold for years, so a normal slowdown won't shake me out.
What it owns
- Makers and installers of transformers, switchgear, transmission lines and other equipment that connects power to where it's needed. · EatonMakes switchgear, transformers and backup power systems for utilities and data centers with growing backlog near record levels., Quanta ServicesThe largest US contractor building transmission lines and substations, with backlog at record levels as utilities increase grid spending., HubbellMakes the poles-and-wires components utilities buy to upgrade the grid as spending plans increase., nVent ElectricMakes enclosures, electrical connections and liquid cooling parts for data centers and the grid with growing data center share., Powell IndustriesBuilds custom switchgear and power control rooms, a smaller company that moves hard on big orders with high margins., MYR GroupA smaller contractor building transmission and distribution lines with backlog growing on utility grid spending., Wesco InternationalDistributes electrical gear and data center equipment to contractors and builders with data center sales growing.32%
- Operators of nuclear, gas and other plants selling power under long-term contracts to data center buyers. · Constellation EnergyRuns the largest US nuclear fleet and sells always-on power to tech companies under long-term contracts at premium prices., VistraOwns gas and nuclear plants in Texas and the mid-Atlantic where data center demand is pushing wholesale power prices up., NextEra EnergyOwns Florida's largest utility and builds wind, solar and batteries faster than most power plants can be added to the grid., Talen EnergyOwns the Susquehanna nuclear plant and sells its power directly to Amazon under a long-term contract., CamecoMines uranium and sells nuclear fuel, gaining when existing reactors run longer and new ones get ordered on rising nuclear demand., OkloDeveloping small nuclear reactors to sell power straight to data centers with no meaningful revenue yet, the riskiest holding in this take.27%
- Companies that build the cooling, electrical and mechanical systems data centers need to run. · VertivSells power distribution and liquid cooling equipment inside AI data centers, with orders growing faster than sales., EMCOR GroupDoes the electrical and mechanical work fitting out new data centers, with future booked work growing on data center projects., Comfort Systems USAInstalls cooling, electrical and prebuilt modular systems in data centers with backlog rising on data center and chip plant projects., Modine ManufacturingHas shifted toward cooling equipment for data centers with that business growing as a share of total sales.22%
- Equipment makers that supply the turbines, reactors and fuel that new power capacity depends on. · GE VernovaMakes the gas turbines and grid equipment new power capacity depends on, with turbine slots booked years ahead and a growing order backlog., BWX TechnologiesMakes nuclear reactor components and fuel with a commercial side growing as commercial reactor orders and small reactor programs move forward.11%
- Cash8%