Sep

3

I post these wondering what Carder D thinks:

Big Tech’s A.I. Data Centers Are Driving Up Electricity Bills for Everyone
Electricity rates for individuals and small businesses could rise
sharply as Amazon, Google, Microsoft and other technology companies
build data centers and expand into the energy business.
14 August, 2025

AI Boom Reshapes Power Landscape as Data Centers Drive Historic Demand Growth
Monday, March 3, 2025

The power industry was once considered slow-moving and perhaps even boring. That is no longer the case as technology has expanded and power demand projections skyrocket. New reports released by analysts at Enverus and Deloitte are examined to provide insight on what’s likely to evolve in the power industry over the coming year and beyond.

Carder Dimitroff responds:

I believe these articles present several issues that could benefit investors:

1) Transformers (not pole transformers). The queue for new transformers is long, and about half are manufactured offshore. Data centers need transformers as do new power sources.

2) Gas turbines. Same situation as transformers. For efficient turbines, the queue is about 5 years.

3) Solar panels. Those who previously invested in solar will see their ROIs grow faster than they expected.

4) Retail consumers. They will see their gas and electric utility bills grow as they pay for higher costs of energy and subsidize infrastructure costs to support new loads.

5) New manufacturing. Several geographical options will present better opportunities than others, as the cost of power is regional and seasonal.

6) Forget new nuclear as a near-term solution.

Asindu Drileba asks:

What do you think about nuclear fusion? Is it really close? The joke is that nuclear fusion has always been ready in 5 years for many decades. But I recently heard Chris Sacca (one of the best VCs ever, made over 250x for his entire fund), mention it is genuinely close and that his new fund, Lower Carbon existing partly to capture the incoming advancements in nuclear fusion.

Carder Dimitroff replies:

Today, nuclear fusion is a science project. Keep in mind that fusion requires operating temperatures of over 100 million degrees (at this level, the distinction between Fahrenheit and Celsius is irrelevant). Producing bulk power from this technology is more than ten years away. At these temperatures, it's unlikely they will be operating near population centers.


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