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Welcome to the VIP edition newsletter from ALPHA, our Stock Deep Dive! We're committed to delivering top-notch financial insights, expert analysis and research, and market updates to help you make informed investment decisions.
In this edition, you’ll read an in-depth analysis of a great stock we’ve been watching: 👇
Stock Deep Dive: Bloom Energy (BE-US, $3.4B MCAP)
The US needs more energy.
Over the last two decades, US power consumption has been essentially flat.
Now, major US electric utilities are adjusting their forecasts to account for the growing demand for AI data centres.
Data center power consumption in the US is projected to nearly double by 2030, rising from 17 GW to 35 GW. While existing data centers require 10-14 kW per data center rack, newer AI-ready racks can demand between 40-60 kW per rack.
All of this is forcing Major US electric utilities to adjust their forecasts. Some utilities expect annual electricity sales to increase by up to 9% year-over-year due to the expanding data center sector.
Goldman Sachs projects that U.S. power demand will grow at a compound annual growth rate (CAGR) of 2.4% from 2022 to 2030, largely due to data center and AI growth. Data center power demand is expected to rise by 160% by the end of the decade, increasing their share of total U.S. power demand to 8% by 2030.
I commonly like picking companies that are at the center of a secular theme. The secular theme here is an increase in energy demand due to higher power consumption.
The company is Bloom Energy.
Why Now?👉 Data Center Power Shortage
Overview 👉 What Does Bloom Energy Do?
How Does it Work? 👉 The Nuts and Bolts
Partner Channel 👉 Strategic Partners + Blue Chip Customers
How Do They Make Money? 👉 Revenue Model
By The Numbers 👉 Key Metrics
Risks 👉 Potential Pitfalls
Why Now?👉 Data Center Power Shortage
Bloom Energy deals in resiliency…and fast. Focusing on always-on and fast deployment is the perfect use case for all anyone is talking about these days - the data center’s need for power.
Source: Company Filings
And Bloom isn’t only talking the talk…they’re walking the walk.
On July 17, Bloom Energy announced a strategic partnership with CoreWeave to provide on-site power for CoreWeave's high-performance data center in Volo, Illinois.
This partnership involves deploying Bloom Energy's solid oxide fuel cells to generate power for the data center, which will support high-density deployments and advanced cooling systems, enabling efficient cloud solutions for AI applications. The installation of the fuel cells is scheduled to begin in the third quarter of 2025.
I think there is MUCH more to come…