The AI Boom's Next Bottleneck Is Electricity. These 3 Stocks Are Positioned to Power the Build-Out.
This week's wave of multibillion-dollar AI announcements shares one common need: more power than the grid can deliver.
The AI Boom's Next Bottleneck Is Electricity. These 3 Stocks Are Positioned to Power the Build-Out.
Overview
The numbers behind the artificial intelligence (AI) build-out keep getting bigger. On Tuesday, chip designer Broadcom announced a financing platform with investment giants Apollo Global Management and Blackstone designed to enable more than 20 gigawatts of AI compute capacity through 2028, launching with an initial $35 billion tranche.
Even automakers want in. General Motors said this week it is developing a sodium-ion battery (a chemistry built on abundant sodium rather than scarcer lithium) aimed at energy storage for data centers and the grid.
Details
All of this demand is landing on an electric grid that can take years to expand. Securing a grid connection for a large data center campus can be a multiyear wait, and the equipment needed to build new power plants is in short supply. That mismatch is where Bloom Energy (NYSE: BE), GE Vernova (NYSE: GEV), and Vistra (NYSE: VST) come in.
Source
Originally published at www.fool.com.
