Dependable Power for AI
David Greenstein@davidgreenstein
−7.2%
since Oct 9
The idea
I believe dependable electricity becomes more valuable as AI data centers keep growing, so this take owns the companies positioned to supply it. The largest share goes to grid and power equipment makers, since that spending happens regardless of who ultimately pays for data center power, with power producers sized by how much output is already locked into long contracts. Smaller slices go to gas, fuel cells and batteries that can add capacity sooner, and to a nuclear supply chain layer for the longer build, with cash held on the side.
What it owns
- Every new data center needs turbines, switchgear, cooling and power lines, and these companies get paid for the equipment no matter who ends up paying for the power. · GE Vernova Inc.It makes the gas turbines and grid equipment that get ordered regardless of how the debate over data center power costs resolves., Eaton Corporation plcIt makes the transformers, switchgear and power distribution gear that every new data center and grid upgrade requires., Quanta Services, Inc.It builds and upgrades the power lines and substations that connect new plants and data centers to the electricity grid., Vertiv Holdings CoIt supplies the power and cooling systems inside data centers, so its growth ties directly to artificial intelligence infrastructure buildouts., Hubbell IncorporatedIt makes the everyday parts utilities need to expand and harden the grid, such as connectors and pole hardware for steady grid spending., Powell Industries, Inc.It makes switchgear, the equipment that routes and protects power at large industrial sites and data centers.35%
- These companies own the plants and sell the electricity, so they earn more when dependable power gets scarcer as data centers multiply. · Vistra Corp.It sells power from gas and nuclear plants, the dependable electricity that becomes more valuable as artificial intelligence demand grows., Constellation Energy CorporationIt runs the largest US nuclear fleet, providing the steadiest round-the-clock power available, and is now locked into long-term contracts with major technology companies., Talen Energy CorporationIt sells power from its own plants directly to data centers through long-term contracts, the most direct bet on growing artificial intelligence demand., Entergy CorporationIt is a regulated utility on the Gulf Coast where industrial and data center customers are adding load and regulators approve its rates., NRG Energy, Inc.It owns a large Texas gas fleet that can add power quickly and also sells electricity to homes and businesses across multiple regions., The Southern CompanyIt is a regulated Southeast utility with nuclear and gas plants that still grows as data centers expand into its service region.33%
- New reactors are the long-term answer to growing power demand, and these companies supply the fuel, parts and designs they need. · Cameco CorporationIt mines and processes uranium, the fuel every existing and future nuclear plant runs on, while already generating cash from current operations., BWX Technologies, Inc.It makes nuclear reactor parts and fuel, with steady government work that sustains operations while the commercial nuclear build takes years., Centrus Energy Corp.It enriches uranium into the fuel that newer reactor designs require, part of the nuclear supply chain the United States is working to rebuild domestically., Oklo Inc.It is developing small nuclear reactors designed to power data centers directly, representing the longer-term nuclear piece of this take.13%
- Gas supply, fuel cells and batteries can add power in months rather than the years a new big plant takes to build. · The Williams Companies, Inc.It moves natural gas through pipelines that feed power plants and gas-fired systems built for data centers, one of the fastest ways to add power., Bloom Energy CorporationIt sells fuel cells that make power right at a data center, so customers avoid waiting years for a grid connection to become available., Fluence Energy, Inc.It builds the large batteries that store power and help the grid handle spikes created by new data center load.9%
- Cash10%