Behind-the-Meter Power Rush
Joe Morrissey@morrisseyjoe
−4.3%
since Oct 6
Practiced to +1.1% over 3 days before going real.
Practice chapter: simulated results; no money was invested.
The idea
I believe data centers are growing faster than the grid can connect them, so onsite power generation becomes the default workaround rather than waiting years in interconnection queues. This basket owns the whole chain that lets a data center skip the line: fuel cells as the purest expression, gensets and turbines for bridge and permanent power, compression equipment, and the gas producers and pipelines that fuel it all. I keep about 10% in cash and spread conviction across the chain rather than betting on one name, with core weight in fuel cells and turbines.
What it owns
- Data centers burning onsite fuel create steady demand for gas producers and pipeline operators, regardless of which equipment maker wins the largest share. · EQT CorporationIt produces natural gas in Appalachia, the fuel that onsite data center generators burn, and gas demand from power generation is growing its contract volumes., Williams CompaniesIt operates the pipeline backbone moving gas to data center regions, and is announcing capacity expansions tied to power and data center demand., Energy TransferIt is signing direct gas supply contracts with data centers, the clearest evidence that onsite power demand is working through the midstream layer., Expand EnergyIt produces more US natural gas than any other company, so if onsite generation becomes the default workaround it sells more fuel to power those plants., Kinder MorganIt operates the broadest gas pipeline network, so it captures onsite power demand wherever data centers are being built across regions., DT MidstreamIt builds the pipeline laterals connecting gas directly to data center sites, the final link in the fuel delivery chain for onsite power., Antero ResourcesIt produces natural gas with less hedging than larger competitors, so its unhedged production gains more if queue-skipping tightens the gas market and prices firm.29%
- Onsite turbines need high-pressure gas supplied by rental compression fleets that fill the gap before permanent equipment arrives, a less crowded layer of the infrastructure chain. · ArchrockIt leads the compression equipment market, pressurizing gas for onsite use where demand is shifting fast and contract rates are firming., Kodiak Gas ServicesIt owns large-horsepower compression equipment that pressurizes gas for big onsite power installations, part of the less crowded supply layer., USA Compression PartnersIt owns compression fleets that pressurize gas for onsite power and pays out cash while utilization and contract rates stay tight., United RentalsIt rents temporary power generation to data centers while they wait for permanent equipment or grid connections, with power rental demand growing faster than overall equipment rental.20%
- Reciprocating gas engines are the fastest way for data centers to install permanent power today, cutting years off the grid connection wait. · CumminsIt leads the natural gas genset market, supplying engines that data centers install when they need power faster than the grid can connect them., CaterpillarIt manufactures large gensets at industrial scale for data centers needing serious onsite power quickly, competing with traditional supply-constrained makers., GeneracIt pushes into industrial gensets as data center demand grows faster than the two largest suppliers can deliver, gaining share in a supply-constrained market.17%
- Aeroderivative gas turbines are the standard equipment for large permanent onsite power plants, and order books are filling as lead times stretch years out. · GE VernovaIt builds aeroderivative turbines that data centers order for permanent large-scale onsite power, and its backlog is growing as lead times stretch., Baker HughesIt supplies small turbines and gas equipment for onsite generation, offering a second way to own the turbine market beyond larger competitors.13%
- Fuel cells let data centers install power onsite and avoid interconnection queues entirely, bypassing the grid connection bottleneck. · Bloom EnergyIt makes fuel cells that let data centers skip the grid interconnection queue by generating power entirely onsite., FuelCell EnergyIt makes fuel cells as a smaller, higher-risk second bet on whether onsite fuel cell adoption grows large enough to lift the number two player.11%
- Other · VG3%
- Cash7%