Unveiling Hidden Gems in the Digital Infrastructure Boom
Welcome to the first edition of Data Center Dollars, your go-to source for discovering investment opportunities in the burgeoning world of data centers. While tech giants like Amazon, Microsoft, and Google often dominate headlines, numerous other companies are making significant strides in this space. Our mission is to spotlight these emerging players, providing you with insights to inform your investment decisions.
🏗️ Emerging Players in Data Center Development
1. New Era Helium (Private Company)
Venturing beyond its core helium operations, New Era Helium has partnered with Sharon AI to establish Texas Critical Data Centers. They're developing a 250-megawatt, net-zero AI and high-performance computing facility in Ector County, Texas, slated for completion by December 2026. This move signifies a strategic expansion into the data center arena, leveraging their expertise in energy and infrastructure.
Midland Reporter-Telegram
2. CoreWeave (Private Company)
Originally a crypto mining firm, CoreWeave has transformed into a leading AI infrastructure provider. Operating 32 data centers across the U.S. and Europe, they've secured significant contracts, including a $1.6 billion supercomputer facility for Nvidia in Texas. Their rapid growth and strategic partnerships position them as a formidable player in the AI-driven data center market.
Wikipedia
🌍 Global Expansion: Brazil's Clean Energy Advantage
Brazil is emerging as a compelling destination for data center investments, thanks to its robust clean energy infrastructure—nearly 90% of its electricity comes from renewable sources. Tech giants like Amazon and Microsoft are already investing in Brazilian data centers, capitalizing on the country's sustainable energy to power AI and cloud computing operations. This trend underscores the growing importance of environmentally friendly infrastructure in the data center industry.
Time
🧱 Building Blocks: Infrastructure Companies Benefiting from Data Center Growth
Martin Marietta Materials (NYSE: MLM)
A leading supplier of construction materials, Martin Marietta has reported increased demand driven by data center projects. Their recent earnings highlight the role of infrastructure companies in supporting the physical expansion of digital infrastructure.
Reuters
Fluor Corporation (NYSE: FLR)
As a global engineering and construction firm, Fluor is well-positioned to benefit from the surge in data center construction. Their expertise in large-scale projects makes them a key player in this evolving landscape.
📈 Investment Insights: Data Center REITs
Real Estate Investment Trusts (REITs) specializing in data centers offer investors a way to gain exposure to this sector. Companies like Equinix (NASDAQ: EQIX) and Digital Realty Trust (NYSE: DLR) have shown resilience and growth potential amid increasing demand for data storage and processing capabilities.
🔍 Spotlight: Under-the-Radar Stocks to Watch
GDS Holdings Limited (NASDAQ: GDS): A Chinese data center operator expanding rapidly to meet the country's growing digital needs.
barrons.comDigitalBridge Group, Inc. (NYSE: DBRG): An investment firm focusing on digital infrastructure, including data centers and fiber networks.
Data Center Knowledge+3Data Center Knowledge+3Wisconsin Watch+3Iron Mountain Incorporated (NYSE: IRM): Traditionally known for records management, Iron Mountain has been investing in data centers, tapping into the digital transformation trend.
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Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.