Fordel StudiosThe best AI investment might be in energy tech
What Happened
Power has become one of the biggest bottlenecks in rolling out new AI data centers. That's creating an opening for investors.
Our Take
Finally someone's saying it out loud. The AI hype cycle's been running on the assumption that we'd just... figure out the power problem. We won't.
Data centers are already consuming stupid amounts of electricity (Google's emissions jumped 48% in 2023), and we're nowhere near infrastructure for the next gen of models. This isn't about finding the next algorithm — it's physics.
SMRs, geothermal, whatever — invest there and you're solving a real constraint, not just printing money betting on another checkpoint. The valuation math works because this solves a bottleneck, not because it's trendy.
What To Do
Check which power companies Blackrock and Sequoia are backing; they probably know something.
Cited By
React