Tech companies are pouring hundreds of billions into AI data centers, taking on heavy debt, but current revenue is relatively tiny https://t.co/rbxZq3ZiMR ...

Group 1: Company Performance - GDS Holdings shares increased by 8.1% to close at $40.67, with a notable trading volume compared to normal sessions, and an overall gain of 11.3% over the past four weeks [1] - The company is expected to report a quarterly loss of $0.06 per share, reflecting a year-over-year change of +62.5%, with revenues projected at $406.82 million, down 3.7% from the previous year [2] - The consensus EPS estimate for GDS Holdings has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Group 2: Industry Context - GDS Holdings is part of the Zacks Technology Services industry, which has seen increased market enthusiasm for Chinese infrastructure names associated with AI, cloud growth, and data centers [1] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook within the industry [4] - Another company in the same industry, Inspired Entertainment, has also maintained a Zacks Rank of 3 (Hold) and is expected to report a year-over-year EPS change of +150% [5]

Core Insights - The rapid growth of Artificial Intelligence (AI) is driving significant demand for electricity, particularly from data centers, which is benefiting utility ETFs [1][3][4] - Major utility ETFs have outperformed the broader utility sector, with notable gains over the past year [2][6] Utility Sector Performance - Prominent utility ETFs such as Utilities Select Sector SPDR Fund (XLU), Vanguard Utilities ETF (VPU), iShares U.S. Utilities ETF (IDU), and Fidelity MSCI Utilities Index ETF (FUTY) have surged more than 7% in the past year, compared to the utility sector's growth of 5% [2][6] - XLU gained 7.6%, VPU gained 7.7%, IDU gained 8.1%, and FUTY gained 8.6% over the past year [7][8][10][11] Data Center Electricity Demand - Data centers are significant consumers of electricity, accounting for about 1.5% of global electricity consumption in 2024, which is approximately 415 terawatt-hours (TWh) [3] - The United States represents 45% of this consumption, highlighting its central role in the AI power boom [3] - The International Energy Agency (IEA) projects that electricity demand from data centers will more than double by 2030, reaching around 945 TWh [4] Investment Opportunities for Utilities - The increasing electricity demand from data centers presents a long-term growth opportunity for utility companies, prompting them to invest in power generation and transmission infrastructure [5] - Regulated utilities can often secure rate increases to cover these investments, leading to higher earnings and benefiting the ETFs that hold these companies [5] ETF Composition and Holdings - XLU has 64.2% exposure to Electric Utilities, with NextEra Energy (11.29%) and The Southern Company (7.82%) as top holdings [6][7] - VPU has 60.7% exposure to Electric Utilities, with NextEra Energy (10.34%) and The Southern Company (6.78%) as top holdings [8] - IDU has 56.1% exposure to Electric Utilities, with NextEra Energy (9.72%) and The Southern Company (6.87%) as top holdings [10] - FUTY has 60.4% exposure to Electric Utilities, with NextEra Energy (10.26%) and The Southern Company (7.01%) as top holdings [11]

Outsized numbers being thrown around regarding AI and data center buildouts, including OpenAI's $850 billion expansion. That's equal to the output of 17 nuclear plants. But how is the energy grid going to handle the added load.And who will ultimately pay for the increased consumption. Well, joining us right here on set is ABV CEO Morton Verrod. Morton, it's great to have you.Welcome. Thank you. Great to be here.This is one of the areas that you play in is electrification, automation, and sort of uh building ...

Hi everybody, I'm Brian Svin of CNBC. Okay, you might have seen this news. You got this huge hundred billion dollar deal with Nvidia and Chat GPT parent company OpenAI.That was on Monday. The total spend on AI in the United States could be closing in on $1 trillion. But here's the thing.We know you love your AI, but it takes a lot of electricity to run it. In fact, they talked about this 10 gawatt deal. Electricity is squishy.It's mushy. I get it. I'm kind of the energy guy here, so I'll tell you this.1 gaw ...

You're operating in a different level of of the curve, right. I think that's one way of putting it. But I do want to get your your reaction to that open air and video deal, because it's all of it that's happening in the market right now.Right. And thank you for having me. It's great to be back.It's both surprising and in scale, but not surprising that it's happening. Number one, I think we're undershooting or underestimating how much compute we need for not only training, but for inference that growth, that ...

How AI Data Centers Could Save California High-Speed Railhttps://t.co/yReFxjwUnJhttps://t.co/yReFxjwUnJ ...

Energy & AI Industry Concerns - Some states are concerned that bringing AI and AI data centers will drive up the cost of energy for ordinary Americans [1] - AI data centers require 99.999% uptime, raising questions about energy prioritization during emergencies like hurricanes [3] Solutions & Strategies - The industry aims to deliver AI and stop the rise in electricity prices through common sense and data-driven approaches [1] - Turning on backup generators at data centers and critical facilities during peak demand can keep the grid robust [5] - Addressing restrictive EPA rules that prevent the use of backup generators is crucial [4] - Securing the grid and lowering the average delivery cost should be the ultimate impact of AI [3] Examples & Agreements - Google signed a deal with Georgia Power and Light to build a huge data center, locking in their rates for 3 years with no increases [2] Grid & Demand - The only time there is a shortage of electrons is at peak demand time [4] - Consumers will always get the energy first [4]

AI Infrastructure & Investment - OpenAI, Oracle, SoftBank 等公司计划开设五个新的数据中心，最终电力容量将达到 7 吉瓦 [1] - 7 吉瓦的电力大约可供 600 万家庭使用 [1] - 行业普遍认为，AI 领域的持续投入巨大，需要创新的融资方式来支持 [2][6] - 行业对 AI 的需求仍然巨大，尤其是在药物研发、癌症研究等尚未解决的问题领域 [3] - 解决这些问题需要大量的训练、GPU 和电力，因此需要大量的资本投入 [4] - ARM 与 NVIDIA 加强合作，下一代数据中心将使用下一代 ARM CPU [6] - 行业正在寻找更具创意的方式来完成融资，因为所需的资本非常庞大 [6] Power & Sustainability - 数据中心对电力的需求巨大，可能需要相当于数百万家庭的用电量 [8] - 本届政府对使用化石燃料和天然气持更加开放的态度，这在短期内有所帮助 [8] - 随着需求的增长，包括小型模块化反应堆（SMRs）和核能在内的所有能源解决方案都在被考虑 [9] - 行业正在考虑包括小型模块化反应堆（SMRs）和核能在内的所有方案，以满足电力需求 [9]

RT Brody Ford (@BrodyFord_)Oracle is set to spend hundreds of billions on data centers, chips, and power. It has to figure out where that cash comes from. $orcl https://t.co/nhO4UOcsf5 ...