Data Centers to Orbit
Clay Norris@claynorris
−9.4%
since Oct 1
The idea
I think demand for data center power sets off a chain: nuclear revival, then grid stress and off-grid backup, then satellites, eventually compute moving to orbit. Rather than buy broad sector ETFs, I picked one or two likely winners in each link plus a higher-upside challenger, keeping the space compute piece small as a speculative kicker on full convergence. It is a multi-year hold, with 10% cash set aside to add on big dips.
What it owns
- The electrical system faces strain from surging data center demand, requiring upgrades to transformers, transmission lines, and backup power systems that most investors overlook. · GE VernovaIt supplies the turbines and electrical equipment utilities are ordering to expand power generation for surging data center demand., VertivIt provides the power distribution and cooling systems that every new artificial intelligence data center requires during physical construction., EatonIt manufactures electrical systems for data centers and across the power grid, capturing value both from new construction and from managing the strained electrical system., Quanta ServicesIt performs the physical construction of transmission lines and substations required to expand the electrical grid under rising data center demand., Bloom EnergyIt produces fuel cells that generate on-site power independent of the grid, serving data centers that require backup electricity beyond strained electrical systems.26%
- Data centers running continuously require reliable, carbon-free electricity at massive scale, and nuclear is the only proven source that can deliver it. · CamecoIt mines uranium in the Western world, supplying the fuel source if nuclear power expands to meet data center electricity demand., Constellation EnergyIt operates the largest nuclear fleet in the United States and is already signing long-term power contracts directly with artificial intelligence data center operators., OkloIt designs small modular reactors intended to operate on-site at data centers, offering a higher-risk path to meeting enormous power demand., BWX TechnologiesIt manufactures the components and fuel that nuclear reactors require, functioning as essential infrastructure across the nuclear power link., Centrus EnergyIt enriches uranium domestically, providing the processing step between mined fuel and reactor operations for the United States supply chain.24%
- The chips and servers running artificial intelligence models form the foundation of this take, where demand for advanced processors drives the entire chain forward. · NVIDIAIt manufactures the processors that artificial intelligence data centers are built around, making it the clearest existing winner anchoring the compute layer., Taiwan SemiconductorIt manufactures nearly every advanced artificial intelligence chip, serving as the production bottleneck for the entire compute layer., BroadcomIt manufactures custom artificial intelligence chips for major cloud operators and the networking infrastructure connecting data centers together.21%
- Orbital networks extend connectivity beyond ground-based infrastructure, with two major builders establishing the layer that links data centers across regions and into space. · SpaceXIt owns the launch capacity and orbital network infrastructure that would carry any compute migration beyond Earth's surface., AST SpaceMobileIt is building a satellite constellation designed to beam connectivity directly to standard mobile phones, establishing orbital network capacity.13%
- The convergence of orbital infrastructure and computing hardware represents the highest-risk, highest-upside layer, where companies build the foundation for data centers eventually moving into space. · Rocket LabIt builds both rockets and spacecraft, positioning itself to serve orbital infrastructure development without dependence on a single customer., RedwireIt builds the structural and power systems that orbital infrastructure would require, representing the most speculative bet on data centers eventually moving into space.6%
- Cash10%