Welcome to Extreme Investor Network, where we provide you with unique insights and opportunities in the world of investing. Today, we are diving into the data center gold rush and how companies providing energy solutions are poised to benefit.
The demand for power in the data center market is growing rapidly, leading to a squeeze in power availability. According to analysts at BTIG, the line to connect new power plants to the grid has surged to 1.6 terawatts, causing major bottlenecks in meeting energy demand. It currently takes nearly five years on average for a new power project to start commercial operations after filing the initial request for a grid connection.
For companies operating data centers, speed to market is crucial. This is where companies that can provide on-site solutions come into play, allowing data centers to bypass the lengthy interconnection process. BTIG recommends looking into companies like Bloom Energy, Core Scientific, and FTAI Infrastructure as ways to play the power shortage theme.
Bloom Energy stands out for its on-site fuel cells that run on natural gas or hydrogen. The company recently signed a contract with Intel to power a data center in California. BTIG’s price target suggests a 34% upside from the current price.
Core Scientific, a Bitcoin miner diversifying into data centers, recently signed an agreement to supply 200 megawatts of power to CoreWeave. BTIG’s new price target calls for nearly 40% upside for the company.
FTAI Infrastructure, an infrastructure company with natural gas assets, is also well-positioned to benefit from the power shortage theme. BTIG sees the stock rising 42%.
In a market where speed and reliability are key, investing in these energy solution providers could be a strategic move for investors looking to capitalize on the data center gold rush. Stay tuned to Extreme Investor Network for more exclusive insights and investment opportunities.