AI Infrastructure: Buy The Buildings, Not The GPUs
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The Academic Investor106 FollowersFollow5ShareSavePlay(24min)CommentsSummaryPure-play power infrastructure providers like Applied Digital, Cipher Mining, Core Scientific, Galaxy Digital, and TeraWulf offer superior risk-adjusted returns over neocloud providers in AI infrastructure.Power scarcity is a structural, decade-long tailwind, with U.S. data center electricity demand projected to rise from 4% to 12-15% by 2030.Pure power plays benefit from predictable cash flows, minimal technology risk, and asset longevity, while neoclouds face risks from rapid depreciation and hyperscalers.The lowest-risk AI infrastructure winners will be those controlling scarce, durable power resources rather than those providing neoclouds. Hugo Kurk/iStock via Getty Images The AI infrastructure build-out represents a trillion-dollar opportunity over the next decade. Power scarcity, not computing power, is proving to be the scarcest resource. Against this backdrop, pure-play digital landlords who provide powered AI-ready facilities, companies like Applied Digital (This article was written byThe Academic Investor106 FollowersFollowAs a professor of Computer Science at a top university, my investment approach combines rigorous analytical frameworks with deep technical knowledge of emerging technologies. I focus on thematic investing at the intersection of artificial intelligence infrastructure, digital assets, and geopolitical trends. My academic training in computer science gives me an edge in evaluating complex technology companies, particularly those building the infrastructure layer for AI and blockchain ecosystems.
On Seeking Alpha, I write primarily about overlooked opportunities in AI infrastructure and crypto-native financial services firms. I'm particularly interested in companies undergoing strategic pivots, sum-of-the-parts valuation opportunities, and situations where the market fails to recognize business model transformations. My analytical style emphasizes fundamental business analysis over technical trading, with a focus on identifying asymmetric risk/reward scenarios. My investment philosophy centers on patience and conviction. I seek companies with 12-24 month catalysts that will force market revaluation, strong balance sheets that provide execution flexibility, and management teams with institutional credibility. I'm comfortable with volatility when the underlying fundamentals support the thesis.Analyst’s Disclosure:I/we have a beneficial long position in the shares of CIFR, CRWV, NBIS, GLXY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You