Sigma Zero Capital
Founder of Sigma Zero Capital, Thematic Trader
Behind-the-meter power generation stocks should be rallying, since data-center permitting delays and a backed-up grid push demand toward on-site power. INIO is a prime example: the stock has sold off even though it is a massive behind-the-meter beneficiary with accelerating demand, especially as data centers become more modular and smaller. x.com
Power and energy stocks look interesting after momentum-driven selling, because the area is more supply-constrained than chips, memory or compute. It also carries less exposure to credit-cycle risk, chip competition or open-source model debates than the rest of the AI supply chain, since there is no such thing as too much power. T1 Energy's dip is tempting because solar generation is an inevitable part of the US future. x.com
Long-lived parts and maintenance revenue is an underappreciated benefit for many behind-the-meter power firms, some of which have gotten very cheap on 2027-28 estimates. INNIO expects more than $50M a year per GW in services from its 19GW backlog and reserved slots, much of it arriving five and ten years after deployment, atop roughly $30M a year per GW from its 44GW installed base. That revenue could persist long after the data-center capex boom ends. x.com
Jan Zuazo Pfingsten
Thematic Investor, Physical Scarcity & AI Infrastructure, Primary-Source Research
Bloom Energy's fast on-site generation could earn a premium by shortening the wait for AI compute. Anthropic's S-1 says it may buy generation equipment above prevailing market rates if it can be deployed faster. Some planned Anthropic data centers rely on dedicated on-site gas generation, and it has committed to cover consumer power-price increases they cause. Bloom's pitch is power in months rather than years waiting for the grid. x.com
Electricity is a clear bottleneck for AI, favoring AI-focused power and data-center infrastructure names over residential utilities. The US could be short 107 GW to power data centers through 2029, while China adds capacity year after year. Medium-term preferences are Cipher, Hut 8, Riot, TeraWulf, Galaxy, Equinix, Bloom Energy, Solaris, Vistra, GE Vernova, INIO, Williams, Liberty Energy, EROC and Cummins. x.com x.com
INNIO is an under-the-radar power play that looks cheap next to Bloom Energy. It has a $6.6B backlog and almost 4 GW of annual capacity by 2027, at a $23B market cap versus Bloom's $70B with roughly the same capacity, though the comparison isn't that simple. It isn't on anyone's radar yet, which is a great thing. x.com x.com
Neoclouds can be an incredible business only if they turn delivered GPUs into revenue on time. Power delays are harder to remedy than commissioning issues; idle GPUs earn nothing while financing costs mount, especially for smaller operators and those reliant on colocation. Energized sites and vertical control help, but GPUs or secured power alone are not enough. IREN has financing secured and Nebius looks less exposed to Musk's debt warning; smaller players may struggle to fund expansion. x.com … Show more
2G Energy's growing orders and long service tail support its unusually cheap AI data-center power valuation. Nine-month 2026 orders exceed €880m, more than twice 2025 revenue; backlog runs into 2028 and service contracts last 15-20 years. Management first guided to €750-850m of revenue in 2028 and says units already sold could support over $100m in annual service revenue once running from mid-2027. At about 17x expected 2027 earnings, it looks cheapest in this space and is preferred to INNIO. … Show more
AI's electricity shortfall creates a massive opportunity for companies solving the power bottleneck. Morgan Stanley estimates a 32 GW US data-center power shortfall by 2028. Constellation Energy and Vistra are nuclear names, Bloom Energy in fuel cells, GE Vernova in power generation and Eaton in grid infrastructure. x.com
Power demand will keep growing exponentially as AI models and data centers get larger, even after the AI hardware rotation slows, creating an AI power supercycle across four layers. Fuel: EQT, Kinder Morgan, Williams, Energy Transfer. Onsite power, the near-term bottleneck fix: Bloom Energy, GE Vernova, Caterpillar, Cummins, Kodiak Gas Services, T1 Energy. Grid: Eaton, Quanta, Vertiv, Hubbell, nVent, Emerson. Nuclear baseload: Oklo, NuScale, Nano Nuclear, Constellation, Vistra, BWX Technologies. … Show more
Capstone Energy+ is a little-known play on behind-the-meter power, a market expected to grow from $108 billion to $520 billion. Everyone knows Bloom Energy, but few know Capstone, which looks positioned to land a data center deal soon, with accelerating revenue growth, improving margins, positive free cash flow and net income, a healthy balance sheet and an attractive valuation. x.com
Some AI data-center developers may have to absorb higher financing costs because existing leases have fixed economics and tenants need not pay more. That could reduce equity returns even as compute demand grows. Scarce deliverable power, strong counterparties and favorable financing could instead make the best developers more valuable as marginal projects stall. Vertically integrated infrastructure landowners such as Cipher look attractive; today's prices may be the worst of the selloff. x.com … Show more
