Power generation has emerged as a crucial investment theme in the context of artificial intelligence (AI) energy demand due to the significant electricity requirements of AI technologies. I'll review an under-the-radar way to play it with options. AI applications, particularly those involving machine learning, deep learning, and large-scale data processing, require substantial computational power, increasing energy demand.
Several factors make power generation a vital AI-adjacent investment theme: Data centers, the backbone of AI operations, are among the largest electricity consumers. As AI adoption grows, the number of data centers and their energy needs are expected to rise exponentially. Investing in power generation becomes vital to support this expanding infrastructure.
Nuclear energy, highlighted by Microsoft's arrangement to use power generated from mothballed nuclear plant Three Mile Island, is a potential source to meet this demand. "Small modular reactors" (SMRs) are also attracting attention as reliable, low-carbon power sources that could support AI's energy needs. Other than utilities/generators—a theme I have previously highlighted — what other industries are poised to participate in the needed infrastructure build-out? How to trade it One such industry is EPC (Engineering, procurement, and construction), such as Bechtel, KBR, and Fluor Corporation (FLR) , which is the topic of this article.
A global engineering, procurement, construction (EPC), and mainten.
