Key insights
- An investor's thesis suggests that the increasing demand for power for data centers and chip fabrication plants, particularly 'behind the meter' generation, will create a bottleneck. This is seen as a bullish signal for power infrastructure, with the investor buying AIPO ETF to capitalize on this trend. While acknowledging potential future slowdowns in data center construction, the long-term power demand is projected to triple by 2030, making energy infrastructure a key investment theme.
This trade was about $1700, which is sizeable for my brokerage account ($25k).
My thesis is not the most technical. I advise owners on construction insurance for large projects, and my whole world the last few years has been Data Centers and Chip Fabs.
A trend I’ve seen in the last 9 months has been a huge shift to behind the meter (btm) power generation. I.e. generate your own power instead of tying into the grid. In Texas for example, it’s now next to impossible to build a data centers WITHOUT bringing your own power.
Eventually, this data center construction is going to slow down. But the power required is going to be insane. We’re talking triple the capacity we have today, will be needed by 2030.
So I bought 50 shares of AIPO, thinking power will be the next bottleneck. I figure it’s a good way to bet on this thesis without taking the full risk of one or 2 stocks.
I think Nuclear is still too early, but SMRs I believe will be prevalent. But I digress.
Like I said, not technical. Would love your thoughts.