Insatiable Power Demand
Kyle Jung@kyle
−18.0%
since Oct 5
The idea
I believe electricity demand from AI is essentially insatiable while new supply takes years to build, so the real scarcity is megawatts already online and grid connections already energized. I own power producers with existing fleets to capture rising prices, former bitcoin miners sitting on energized interconnects they're converting into AI hosting campuses, and neoclouds renting out GPU compute to prove the demand is real.
What it owns
- Former bitcoin mining sites with energized grid connections are being converted into higher-margin artificial intelligence data center hosting. · IREN LimitedThis former bitcoin miner is converting energized grid connections into artificial intelligence hosting and GPU compute, a direct play on scarcity., Applied DigitalIt has already signed hyperscaler leases that convert cheap power into premium hosting revenue, demonstrating the shell-to-host transition., TeraWulfIt operates on some of the cheapest power available, creating a platform to lease energized sites to artificial intelligence customers at scarce-megawatt rates., Cipher MiningIts pipeline of grid connections in Texas represents scarce interconnect capacity that can be leased to artificial intelligence tenants at premium rates., Hut 8It treats megawatts as its core asset and is shifting capacity toward higher-paying artificial intelligence customers rather than mining alone., Galaxy DigitalIts Helios campus in Texas is a former mining site being converted into artificial intelligence data center capacity with contracted tenants., Core ScientificIt has already converted much of its power footprint into contracted artificial intelligence hosting, moving further along the transition than most competitors., Bitdeer TechnologiesIt has a gigawatt-scale pipeline of power sites that can be energized and leased to artificial intelligence customers at premium rates.41%
- Existing power plants can capture higher prices as data centers compete for a fixed supply of electricity. · Vistra CorpIt owns the largest merchant power fleet in the country, so existing megawatts capture higher prices as data center demand competes for limited supply., NRG EnergyIts gas plants operate where data center demand is growing fastest in Texas, and natural gas is the supply that can respond quickly to rising demand., Talen EnergyIt has signed long-term contracts selling power directly to data centers at premium rates, proving the pricing power available to scarce megawatts., Fermi IncIt builds power campuses purpose-built for data centers, supplying scarce energized capacity to address the shortage in the market.30%
- Companies renting GPU compute to artificial intelligence customers demonstrate sustained demand for power-hungry infrastructure. · CoreWeaveIt rents GPU compute to artificial intelligence customers, and its contracted backlog shows whether the demand for power-hungry compute remains strong., Nebius GroupIt rents GPU compute from data centers it owns itself, capturing both rising demand and scarce infrastructure as it fills capacity with paying customers.19%
- Cash10%