−9.4%
since Oct 8
The idea
I think the real winners of the data center buildout are the contractors physically building it, not the ones selling the power, so this leans into electrical crews, substation and transmission builders, and mechanical shops with backlogs booked out for years. The core sits in grid and transmission contractors and data center electrical and mechanical firms, with smaller stakes in site work, connectivity, and power plant engineering. I also hold a side bet in a few power producers, since the same demand should show up in what they can charge.
What it owns
- Contractors that build substations, high-voltage transmission lines and utility distribution networks that supply power to data centers and the grid. · Quanta ServicesIt is the largest grid and transmission contractor in the US, winning substation and high-voltage line work from utilities and data center developers building out power infrastructure., MasTecIt builds transmission lines, substations and other infrastructure needed to deliver power to data centers, with expanding backlog in its power delivery segment., Primoris ServicesIt constructs utility infrastructure and power projects including substations, with growing backlog from demand for new grid capacity., MYR GroupIt performs transmission, distribution and electrical work on utility systems, with backlog expanding from sustained spending on grid infrastructure., Centuri HoldingsIt performs gas and electric distribution work for utilities, with growing electric utility backlog supporting steady revenue growth.31%
- Contractors that install the cooling systems, power distribution, piping and electrical equipment inside data center buildings. · Comfort Systems USAIt installs cooling systems, piping and power distribution equipment inside data centers, benefiting from rising construction backlogs as facilities expand., EMCOR GroupIt provides electrical and mechanical contracting services to data centers, with growing backlogs of booked work supporting revenue growth., IES HoldingsIt supplies electrical installation services and custom power equipment for data center construction, growing with rising data center related orders., Everus Construction GroupIt performs electrical, mechanical and transmission work for data center and utility customers, with backlog expanding from both sectors., Limbach HoldingsIt provides mechanical and electrical services for mission critical facilities, with growing margins on direct work for building owners.29%
- Contractors that prepare land for data center campuses, build foundations and site infrastructure, and install fiber networks connecting facilities. · Sterling InfrastructureIt performs grading, foundations and site infrastructure work for large data center campuses, with a backlog driven by major tech companies breaking ground on new facilities., Dycom IndustriesIt builds fiber and telecom networks including long-haul fiber that connects data centers, with orders growing from hyperscalers and telecom carriers., APi GroupIt installs fire protection and life safety systems required in every new data center, growing revenue from construction of new facilities.14%
- Engineering and construction firms that design and build gas-fired power plants and large infrastructure projects needed for energy generation. · ArganIt builds gas-fired power plants that provide electricity to data centers, with backlog near record levels from new generation contracts., FluorIt provides engineering and construction services for power generation and industrial projects that support data center infrastructure buildout., Jacobs SolutionsIt designs and manages large infrastructure and power projects, with data center and energy design work growing as a share of its bookings.14%
- Power generators with long-term contracts to supply electricity to large data center operators. · TLNIt owns power plants including nuclear capacity with signed electricity supply agreements to data centers, providing exposure to contracted power prices., VSTIt operates gas and nuclear power plants with long-term electricity contracts to large tech companies, providing exposure to data center power demand., CEGIt runs the largest nuclear fleet in the US and has signed long-term power supply contracts with tech companies., NRGIt generates and sells electricity across the US including Texas, where data center demand is driving power consumption higher.12%