Artificial intelligence is often talked about in terms of semiconductors and software. But behind every AI model being trained and every task it performs is a simple problem: power.
As data centers expand and computing demand grows, investors are starting to look at the less obvious winners of the AI boom. That is, the companies that generate, move and support the energy needed to keep those servers running. In other words, the picks and shovels of the AI gold rush.
That was the focus of our latest conversation on Ticker Take with Matt Sallee, head of investments at Tortoise Capital.
His view is that AI is triggering a multi-year energy and infrastructure build out, creating opportunities beyond the usual headline tech names.
Why AI is becoming an energy story
Training and running large AI models uses a lot of power. Data centers already consume roughly two percent of global electricity, and that number is set to rise as AI adoption grows.
The challenge isn’t just producing enough power, it’s getting it where it’s needed, upgrading grids, building pipelines, boosting cooling capacity and constructing the infrastructure that keeps modern data centers running.
That’s the thread that ties together the stocks on Sallee’s list. While they operate in different areas, they all stand to gain from rising power demand tied to AI.
Here’s the list:
Dell Technologies (DELL)
AI servers are bigger, more power-hungry and more complex than traditional hardware.
Dell has become a key supplier of AI-optimized servers, putting the company in a strong spot as cloud providers and enterprises expand AI capacity.
Digital Realty (DLR)
As one of the largest data-center REITs, Digital Realty sits at the crossroads of AI and energy demand. New AI workloads need facilities with reliable power and room to grow. While the stock has lagged some AI-themed peers, it remains a core way to invest in the physical backbone of the digital world.
Energy Transfer (ET)
AI’s power needs don’t just help electricity producers. Natural gas is still a major fuel for power generation, and Energy Transfer’s pipeline network moves the molecules that keep the grid running. The company is also popular with income-focused investors.
Evergy (EVRG)
Regulated utilities are joining the AI conversation. Energy serves areas with rising industrial and data-center demand, and utilities like it may need to invest in generation and grid upgrades to meet future growth.
MasTec (MTZ)
Building energy infrastructure takes more than money, it takes contractors. MasTec builds pipelines, transmission lines and other critical assets, putting it in the middle of the energy expansion tied to AI and electrification.
Modine Manufacturing (MOD)
Cooling is one of the hidden challenges of AI. High-density data centers generate a lot of heat, and Modine specializes in thermal management. While it doesn’t get the same attention as big-name tech stocks, the company provides an important piece of AI infrastructure.
IREN (IREN)
Originally known for high-performance computing and digital infrastructure, IREN shows how power access can be a competitive edge.
Sites with low-cost, renewable energy are increasingly attractive for data-center development.
The Williams Companies (WMB)
Like Energy Transfer, Williams delivers natural gas to regions that need it most. With long-term contracts and a focus on major demand corridors, the company offers exposure to the energy needed to fuel AI infrastructure.
The Ticker Take
The common thread across these names isn’t hype, it’s necessity. AI doesn’t work without reliable energy, and meeting that demand will require years of investment across utilities, pipelines, data centers and other infrastructure providers.
For investors, the takeaway is simple. The AI trade doesn’t start and end with chips. Some of the most durable opportunities may lie in the less flashy businesses quietly supporting the boom.
You can watch the full conversation with Matt Sallee on this week’s episode of Ticker Take.
Jon Erlichman is a BNN Bloomberg contributor and the host of Ticker Take on YouTube.