On-Site Power for AI Compute
anil@anil
−6.0%
since Oct 13
The idea
I believe compute demand could grow massively over the next couple of years and the grid simply can't keep up, so electricity becomes the bottleneck. This take leans into companies building power right at the data center: generation equipment like turbines and gas engines, rental power fleets, the batteries and switchgear that stabilize it, plus the pipelines and producers supplying the gas. It's concentrated on purpose for a shorter window, with some cash kept aside to add if these names sell off.
What it owns
- Manufacturers of engines, turbines, and fuel cells that let data centers produce their own electricity without waiting for grid connections. · Caterpillar Inc.It makes the gas engines and turbines that data centers install on their own land to generate electricity., Bloom Energy CorporationIt builds fuel cells that convert gas to electricity directly on a data center site and start running much faster than grid hookups., FTAI Aviation Ltd.It is converting jet engines into small turbines for on-site data center power generation., Cummins Inc.It manufactures generator sets designed to shift from backup power to full-time operation as data centers demand continuous on-site generation., Generac Holdings Inc.It is expanding from home backup generators into the larger generators that data centers need for on-site power., Enerflex Ltd.It builds packaged power units that can be deployed to data center sites and run independently from the grid.34%
- Pipeline operators are building infrastructure to feed natural gas directly to data centers that run on-site power plants. · The Williams Companies, Inc.It operates pipelines that feed natural gas directly to data centers building their own power plants., Energy Transfer LPIt operates pipelines that supply gas directly to data center power plants under dedicated supply agreements., Kinder Morgan, Inc.It owns extensive gas pipelines across regions where data centers are building on-site power plants.20%
- Companies that own mobile turbines and can deploy them to data center sites within months, providing the fastest path to on-site power. · Solaris Energy Infrastructure, Inc.It owns fleets of mobile turbines that can power a data center within months, faster than grid alternatives., Liberty Energy Inc.It is converting drilling equipment and expertise into power rental contracts for data center customers., ProPetro Holding Corp.It is building a power rental fleet as a new business line alongside its existing drilling operations.17%
- Natural gas extraction companies benefit as more on-site power plants burn gas to feed data center electricity demand. · EQT CorporationAs the largest US natural gas producer, it supplies more gas as data centers shift to on-site power generation., Expand Energy CorporationIt produces natural gas at low cost and can profit from rising power demand even if gas prices fall., Antero Resources CorporationIt produces natural gas in Appalachia near planned data center and power plant development in that region.14%
- Battery systems and electrical switching equipment that stabilize power delivery from on-site generators to handle data center workload swings. · Fluence Energy, Inc.It makes battery systems that smooth out sharp power swings in data centers, a critical need for on-site generators., Powell Industries, Inc.It manufactures switchgear that safely connects on-site generators to data centers and routes power delivery.6%
- Cash9%