One of the big stories of the past year has been the relentless need for electricity to drive AI technology. You hear all sorts of projections about the amount of electricity the U.S. will need by 2030 to supply the massive data centers for AI, Crypto, and the Cloud.
There is a huge demand for such mundane things as transformers. Many investors are betting on copper.
The big tech companies are looking for more power and realize that wind and solar won’t cut it. This is why they have decided to partner with nuclear power companies. Ironically, land near nuclear power plants – which in the past has been the least desirable – has become dear.
Forbes writes:
“Companies like Microsoft, Amazon, and Google are racing to build out data centers capable of handling this incredible demand, and they need a lot of energy to do it. By one estimate, data centers could consume up to 9% of the United States’ electricity by 2030, more than double what they use today. That’s a staggering amount of power, and it raises serious questions about how we’re going to meet that demand in a way that’s both reliable and sustainable.”
Here’s the thing: Renewable energy sources like wind and solar, as popular as they are, simply aren’t enough to get the job done. They’re intermittent, meaning they can’t provide electricity 24/7. That’s where nuclear comes in.”
We have been writing about this industry for months. Companies that had anything to do with nuclear or uranium have shot up. Vistra: (NASDAQ:VST) is up 254% alone over the past 12 months. Power Solutions International (OTC: PSIX) is up 919% year to date.
Today the industry got hit with bad news.
The Federal Energy Regulatory Commission (FERC) denied a request that would have allowed electric power utility Talen Energy (NASDAQ: TLN) to increase the amount of power at one of its nuclear plants in Pennsylvania so that it could feed an Amazon (NASDAQ: AMZN) data center.
Talen’s grid operator, PJM Interconnected, had requested an increase of power going to the data center from 300 megawatts to 480 megawatts.
FERC reasoned that the expansion could have vast ramifications for grid reliability and consumer pricing. Other mega tech companies including Microsoft, Google, and Meta have also inked deals to expand nuclear power.
It was common knowledge that the government’s Ok for new nuclear power wouldn’t be a walk in the park. Though the regulatory body is mandated to be bipartisan, bureaucracies aren’t rewarded for speed. Their natural inclination is to avoid blame at all costs and when dealing with nuclear power I can’t say I blame them.
Across the space, companies have sold off including OKLO which is down 5.81% as I write this. That said this investment opportunity is far from over and I expect that every selloff will be bought.
All the best,
Christian DeHaemer
Outsider Club
Build Your Dreams: https://www.outsiderclub.com/sneaky-play-on-chinas-ev-market/
End of Mag 7? https://www.outsiderclub.com/mag-7-hits-the-fan/
Brit Goes Nuclear https://www.outsiderclub.com/one-ai-stock-one-nuclear-stock/
