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The Hidden Power Play Behind AI’s $2.8 Trillion Boom

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Hello, Reader

We’ve been keeping an eye on the current government shutdown here at Smart Money, but one group has clearly ignored it…

Tech stocks.

While Main Street is concerned about the political gridlock, Wall Street has tuned out the noise and instead focused on this week’s positive AI news, which drove the tech-heavy Nasdaq Composite to new highs.

What’s more, Citigroup Inc. (C) also raised its forecast for AI-related infrastructure spending by tech giants from $2.3 trillion, estimated earlier this year, to $2.8 trillion through 2029. Citi analysts cited ever-growing AI appetite – a hunger that is fed by data centers.

Although AI may seem like an invisible, nebulous force, it cannot work its magic without millions of physical servers humming along inside the world’s data centers 24 hours a day.

The four leading “hyperscaler” data center operators – Amazon.comInc. (AMZN), Meta Platforms Inc. (META), Microsoft Corp. (MSFT), and Alphabet Inc. ( GOOGL) – have invested an astounding $1.5 trillion during the last five years in research and development, plus property, plant, and equipment – i.e., data centers.

And the pace of spending is increasing.

But these millions of servers cannot come into existence and operate without captive energy sources that deliver reliable power.

Citi’s report this week also estimates that global AI compute demand would need 55 gigawatts of new power capacity by 2030, which translates to $2.8 trillion in incremental spend. That’s $1.4 trillion in the U.S. alone.

So, in today’s Smart Money, let’s take a look at the energy source ready to feed AI’s hungry, hungry data center boom.

And then I’ll share one specific way you can capitalize on its future.

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AI’s Energy Appetite

During the last few years, the combined electricity consumption of Amazon, Meta, Microsoft, and Alphabet soared more than 80%. The sheer volume of incremental electricity demand AI will require a comprehensive, large-scale solution.

Nuclear power will provide part of that solution.

In many respects, nuclear power has no equal, especially when it comes to powering data centers.

Nuclear power plants can run continuously for long periods of time without needing maintenance or refueling, so they are an ideal energy source for data centers. That’s why all the major tech companies are striking deals to secure part of their future electricity needs from nuclear power sources.

And nuclear power also got a boost this week here in the U.S. amid the shutdown headlines.

The U.S. Department of Energy chose four companies for its new pilot program to build advanced nuclear fuel lines. One company in the grouping, Oklo Inc. (OKLO), will construct and operate three nuclear fuel production plants. The program’s projects are intended to accelerate the development of a domestic supply chain for nuclear research and demonstration.

So, here’s where the profit opportunity comes in…

Going Nuclear

This new high-profile demand for nuclear power from the tech industry could accelerate the uranium industry’s growth and profitability.

So, a great way to capitalize on that potential is by investing in the uranium market.

In fact, I recommended a unique energy play to my Fry’s Investment Report members that stands to benefit directly from the growth of AI technologies.

It’s a fund that holds a broad portfolio of uranium companies – both those that are currently producing, and those that hope to produce in the future.

Again, the primary rationale for this investment is AI and its data center construction boom.

This uranium play is up nearly 90% year-to-date, and major supply-demand imbalances in the uranium market will likely push uranium prices significantly higher.

To learn how to access all of the details on my uranium recommendation, click here.

Regards,