Great analysis. You didn't mention behind the grid power generation as a major source of short-term energy supply. Specifically, utility scale natural gas power plants that are only providing power to data center and that are not necessarily connected to the grid. Many of the players you mentioned I'm sure will benefit from AI data center growth but what are your thoughts about energy producers playing a bigger role in the short term? It seems that the tech players are focusing on natural gas to supply the AI data center power load as the most cost effective and quickest way to scale. This was missing from your analysis and I think is worth a second look.
Interesting. Are there any big public players that are doing this?
I specifically ignored oil and gas companies as they are excessively affected by the commodity pricing and also we won't be able to accurately judge how much of their reveue is coming from data center deals.
Matt, this was my thought as well. The only way I see the anticipated data center/AI build out working is if they include behind the grid power generation in their data center build out. Essentially building power plants, attached to natural gas pipelines, on their data center grounds. I can’t imagine the US grid being able to handle the anticipated demand any time close to data center build timelines.
Great analysis. You didn't mention behind the grid power generation as a major source of short-term energy supply. Specifically, utility scale natural gas power plants that are only providing power to data center and that are not necessarily connected to the grid. Many of the players you mentioned I'm sure will benefit from AI data center growth but what are your thoughts about energy producers playing a bigger role in the short term? It seems that the tech players are focusing on natural gas to supply the AI data center power load as the most cost effective and quickest way to scale. This was missing from your analysis and I think is worth a second look.
Interesting. Are there any big public players that are doing this?
I specifically ignored oil and gas companies as they are excessively affected by the commodity pricing and also we won't be able to accurately judge how much of their reveue is coming from data center deals.
Matt, this was my thought as well. The only way I see the anticipated data center/AI build out working is if they include behind the grid power generation in their data center build out. Essentially building power plants, attached to natural gas pipelines, on their data center grounds. I can’t imagine the US grid being able to handle the anticipated demand any time close to data center build timelines.
Yes, very well done. Would love to be able to track your portfolio in real time - is that possible?
Thank you. Yes. You can track it here:
https://docs.google.com/spreadsheets/d/1-eyFutbby_Ntbs_8cnO-zYPoUquN5DSZbTpxq_EC9mA/edit?usp=sharing
This is excellent research! Fantastic article
Thank you!
This is amazingly useful. Congrats