Power Sets AI's Speed Limit
Gega Tsurtsumia@gega
The idea
I believe AI's growth over the next decade will be capped by how fast we can build and deliver electricity, so I'm betting on both sides of that bottleneck: companies adding new power generation and companies building the grid to carry it. The basket leans on steady, larger operators and equipment makers for most of the weight, with smaller, faster-moving names kept intentionally small. I'm holding cash on the side to add if prices drop, and I'm sticking with this for years rather than reacting to any single quarter.
What it owns
- New power is useless until transformers, switchgear and transmission lines carry it to data centers, and those are in short supply. · Quanta ServicesIts crews build transmission lines and substations that carry new power to where it is used., Eaton CorporationIt makes transformers, switchgear and power distribution equipment that connect new power to data centers and the grid., Hubbell IncIt sells connectors, hardware and components utilities use to expand and maintain the grid., Vertiv HoldingsIt makes the power and cooling equipment inside data centers, so every new megawatt reaching a facility needs its gear., Powell IndustriesIt builds custom switchgear that routes power at plants and data centers where grid equipment is in short supply.29%
- These companies own the nuclear and gas plants that sign long contracts to sell electricity straight to AI data centers. · Constellation EnergyIt runs the largest nuclear fleet in the US, which produces power around the clock that data centers lock into long-term contracts., Vistra CorpIt owns gas and nuclear plants that become more valuable when new electricity stays hard to build., NextEra EnergyIt operates major utilities and builds wind, solar and battery capacity at scale to add megawatts to power supply., NRG EnergyIt runs a large gas fleet in Texas where data center demand is growing fast and the grid must keep up., Talen EnergyIt sells power from its plants directly to data center campuses, capturing the direct link between AI growth and megawatt demand.26%
- These companies build the gas turbines, reactors and on-site generators that every new unit of power depends on. · GE VernovaIt makes the gas turbines new power plants need, and supply is the bottleneck constraining how fast new power can be built., BWX TechnologiesIt makes reactor parts and nuclear fuel components that are ordered when the US builds more reactors., Bloom EnergyIt puts fuel cells at data centers so they can get power without waiting for the grid connection to be built., Oklo IncIt is designing small nuclear reactors as a potential source of new power later in the decade.19%
- Most new US power plants built this decade will burn natural gas, so the pipelines and producers feeding them benefit. · Williams CompaniesIt runs major gas pipelines that deliver fuel to new power plants built for data centers., EQT CorporationIt is the largest US natural gas producer, so more gas burned for power generation increases demand for its output.9%
- More reactors running longer means steady demand for uranium and the enriched fuel made from it. · Cameco CorporationIt mines uranium and makes reactor fuel, so more reactors running longer means more fuel sold., Centrus EnergyIt enriches uranium in the US for reactor fuel, a step where domestic supply is limited and most fuel depends on.9%
- Cash8%