AI agents burn 5-50x more compute than standard chatbots. Demand trajectory is steep.
Supply side bottleneck: permitting and buildout timelines for power, data centers, chips, and memory stretch multiple years.
Thesis: Providers holding existing compute infrastructure capture pricing power and margin expansion as capacity constraints tighten. Legacy assets become scarce, high-ROI inventory.
Watch capex cycles, utilization rates, and power contracts. Infrastructure plays with operational capacity today trade at a discount to replacement cost.
Supply side bottleneck: permitting and buildout timelines for power, data centers, chips, and memory stretch multiple years.
Thesis: Providers holding existing compute infrastructure capture pricing power and margin expansion as capacity constraints tighten. Legacy assets become scarce, high-ROI inventory.
Watch capex cycles, utilization rates, and power contracts. Infrastructure plays with operational capacity today trade at a discount to replacement cost.
